What is Construction Industry Analysis?

B. Turner

Construction industry analysis provides builders and investors with financial and performance information about the construction industry. This information helps builders and investors makes important decisions about when and how to spend money or invest in a new project, and also gives the public insight into the health of the economy overall. Each construction industry analysis may cover state, regional, or global performance. The reports generated during construction industry analysis provide information on current conditions, historical trends, and even predictions for the future of the construction industry.

A construction industry analysis may be performed by a construction company or a financial firm.
A construction industry analysis may be performed by a construction company or a financial firm.

While a construction industry analysis may be performed on the industry as a whole, many parties enjoy greater benefits from an analysis of specialized fields within construction. For example, an analysis of the heavy construction industry covers bridge building, road work, and other non-building work. A general contracting analysis generally covers commercial structures or residential and multi-family construction. Engineering and architectural services may require their own set of analyses, as do specialty services ranging from flooring to modular construction.

A construction industry analysis may be performed by a construction company, a financial firm, or an industrial or financial publication. These entities start by collecting data from construction companies about their recent projects and financial performance. They may issue surveys for these companies to complete, or look at tax records and public building permit information. By combining current information with past data, these groups prepare an industry analysis report that can then be sold or distributed to interested parties.

These reports contain information on total revenue and profits within the construction industry or a specific field. They may also include historical pricing data and predictions for future changes. A construction industry analysis report may also include information about how revenue breaks down by type of project or locations. These reports often include employment data as well, including information on the number of jobs gained or lost within the industry.

Using these reports, construction firms can learn about potential opportunities in certain areas or fields of trade. They can use this data to determine where to focus marketing efforts, and to determine whether to hire more employees or invest in new equipment. Investors and developers can gain insight into what type of projects may be profitable, which can help them invest their money wisely. Economic professionals may also use construction industry analysis to learn more about the health of the economy as a whole, and to spot periods of growth or recession.

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