The construction industry is the nation's largest manufacturing sector. It experienced its seventh year of growth in 1997. Competition is extremely keen both at home and abroad with many small firms and a few large, globally competitive firms at the top. There is continued consolidation among mid-sized firms as larger firms have adopted acquisition and diversification as a strategy for growth. Globally, despite the economic slowdown in Asia, the US remains competitive on the strength of its design and management firms and their use of information technology and innovative construction methods. Our nation's infrastructure remains in need of critical repair and expansion. With the advent of balanced federal budgets, there is a growing willingness to fund these projects. Privatization and Design- Build-Operate variations are also keys to funding this development. Firms that can bring risk sharing, financing, and engineering expertise to the table will retain a competitive advantage. Technology advancement is necessary to keep costs in check in overhead and construction.
ICAF Industry Studies 1998