Construction Industry Overview

Construction Market Definition

The construction market consists of the sales revenues earned by entities (organizations, sole traders and partnerships) that construct buildings or engineering projects (e.g., highways and utility systems). Establishments that prepare sites for new construction and those that subdivide land for sale as building sites are included in this market. The construction market includes new work, additions, alterations, maintenance, and repairs. Construction is the process of constructing a structure such as building, framework or model using various materials. Any construction project is made out of specific variations within a fixed framework of distinct stages - design, production and conversion of raw materials into manufactured products, and construction. Each of these stages consist of its own internal stages, processes, and aspects that combine together to complete a construction project.

The container houses market consists of sales of houses developed using shipping containers. Container house manufacturers utilize shipping containers to construct sustainable and affordable high-quality houses. These houses are considered environment friendly homes as these homes are made from used containers, which reduces the use of metal. The global container houses market was valued at about $47.68 billion in 2018 and is expected to grow to $61.34 billion at a CAGR of 6.5% through 2022. North America is the largest market for container houses with a 39% share in the market. The space constraint issues and resulting rise in housing prices in most of the major cities across the world is driving the growth in the container houses market. Container houses make use of the old shipping containers to build their houses and require very less space compared to conventional houses, thus saving space. According to Discover containers, every time a 40 foot container is recycled and reused to construct a house close to 3500 kilograms of steel can be used again, which would otherwise be melted down. Moreover people in urban areas are opting for container houses in order to afford a cheaper living, as container houses costs less compared to tradition houses. In 2018, the affordable housing program in Alberta receiver a funding of $10 million from the US federal government. The program is aimed at using repurposed shipping containers to build houses. The container houses market is expected to benefit from increasing space constraints and housing prices during the forecast period. High possibility of corrosion is restraining the growth of the market for container houses. The life span of the container house is highly dependent on the climate in which the shipping container is located. Container houses corrode faster in coastal areas due to a large amount of salt in the air. For instance, according to the Confoot report of 2018, the average lifespan of a heavily used container house is close to 10-15 years if high maintenance is applied. For container houses that are not used as often can last up to 25 years, after which, it can no longer be used. This dependence of container houses on climatic factors and high vulnerability to corrosion is restraining the growth of the market. Companies in the container houses market are increasingly adopting artificial intelligence (AI) into manufacturing of container houses, in order to develop better designs for the houses. AI can be used in detecting and resolving any constructional issues before starting the manufacturing process. AI is an essential sketch platform that helps in generating many innovative layouts or designs. This helps companies to reduce the manufacturing cost and time and improve constructional safety. With the use of artificial intelligence, customers can also accurately correlate the size of the area to the number of goods or appliances that will fit in that respective area. The Container houses market is regulated by various regulatory bodies and gaining permission for the construction of container houses is a complex process. A container house cannot be constructed anywhere, as there are certain zoning regulations and building codes restricting such construction. According to zoning regulations, all the similar construction houses are built together at one place. Whereas the building codes state the standards to be followed for the construction of a container home. Building codes include information on the type of formation to be used, the square foot requirements of each room, minimum insulation required and other specifications. CRS Temporary Housing merged with Klein & Company on November 30, 2018. Founded in 1995 and based in Colorado, USA, Klein & Co. provides total hotel accommodations and fully furnished temporary housing for families who have been displaced from their homes. This merger will further solidify the position CRS has as one of the market leaders in the industry. Major players in the market are Giant Containers, SG Blocks, Inc., Gaint Containers, Anderco Pte Ltd. and Container Homes USA.

Specialty Trade Contractors Market Characteristics

The specialty trade contractors market consists of the sales revenues earned by entities (organizations, sole traders and partnerships) that perform specific activities (e.g., pouring concrete, site preparation, plumbing, painting, and electrical work) involved in building construction or other activities that are similar for all types of construction, but that are not responsible for the entire project. The work performed may include new work, additions, alterations, maintenance, and repairs. The production work performed by establishments in this market is usually subcontracted from establishments of the general contractor type or for-sale builders, but especially in remodelling and repair construction work also may be done directly for the owner of the property. Specialty trade contractors usually perform most of their work at the construction site, although they may have shops where they perform prefabrication and other work. The sales revenues of establishments primarily engaged in preparing sites for new construction are also included in this market.

Land Planning And Development Market Characteristics

The land development market consists of the sales revenues earned by entities (organizations, sole traders and partnerships) that service land and subdivide real property into lots, for subsequent sale to builders. Servicing of land may include excavation work for installation of roads and utility lines.

Nonresidential Building Construction Market Characteristics

The non-residential building construction market consists of the sales revenues earned by entities (organizations, sole traders and partnerships) that construct non-residential buildings (including new work, additions, alterations, maintenance, and repairs). The establishments in this market include non-residential general contractors, non-residential for-sale builders, non-residential design-build firms, and non-residential project construction management firms. The non-residential building market includes new work, additions, alterations, maintenance, and repairs.

Utility System Construction Market Characteristics

The utility system construction market consists of the sales revenues earned by entities (organizations, sole traders and partnerships) that construct distribution lines and related buildings and structures for utilities (i.e., water, sewer, petroleum, gas, power, and communication). All structures (including buildings) that are integral parts of utility systems (e.g., storage tanks, pumping stations, power plants, and refineries) are included in this market. The work performed includes new work, additions, alterations, maintenance, and repairs.

Foundation, Structure, And Building Exterior Contractors Market Characteristics

The foundation, structure and building exterior contractors market consists of the sales revenues earned by entities (organizations, sole traders and partnerships) that perform the specialty trades needed to complete the basic structure (i.e., foundation, frame, and shell) of buildings. The work performed may include new work, additions, alterations, maintenance, and repairs.

Building Equipment Contractors Market Characteristics

The building equipment contractors market consists of the sales revenues earned by entities (organizations, sole traders and partnerships) that install or service equipment that forms part of a building’s mechanical system (e.g., electricity, water, heating, and cooling). The work performed may include new work, additions, alterations, maintenance, and repairs. The sales revenues of contractors installing specialized building equipment, such as elevators, escalators, service station equipment, and central vacuum cleaning systems, are also included.