Steeling themselves: Weak downstream demand conditions have led to consolidation and exits

Structural steel is an integral part of many construction projects, with steel framing used to support walls and roofs on buildings, while steel reinforcement is used for the production of tilt walls or to strengthen concrete foundations. Steel erection services are generally undertaken by contractors within the Structural Steel Erection Services industry, although they compete for projects with skilled tradespeople working for the prime construction firms. The industry consists of numerous small-scale contracting firms that operate in narrow regional or niche service markets.The industry has been influenced by widely divergent trends in the key building and infrastructure markets over the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The current slump in steel erection work on high-rise apartments is driving down demand
  • The recent slump in infrastructure and apartment projects have led to poor industry performance
  • Growth in the non-residential building markets will continue to support demand for industry services
  • Industry Report - Industry Investment Chapter

    The industry has a low degree of capital intensity as the principal value added is derived from the application of skilled labour. The industry's total labour content, including both wages and payments to subcontractors, represents about 44.5% of annual industry revenue. This underlines the labour-intensive nature of industry activity. However, the industry does have a substantial reliance on heavy machinery and scaffolding, which is often supplied by subcontractors under wet hiring arrangements (i.e. the hiring of equipment with an operator). Capital inputs such as overhead cranes, hoists and scaffolding are often leased by the operator or owned by the prime contractor...purchase to read more.

    Additional Insights for the Structural Steel Erection Services Industry

    IBISWorld has determined the most important Key Success Factors for the Structural Steel Erection Services are:

  • Having a good reputation
  • Having contacts within key markets
  • Having a high profile in the market
  • IBISWorld analysts also discuss how external factors such as Demand from commercial and industrial building construction and Demand from multi-unit apartment and townhouse construction in the Structural Steel Erection Services industry impact industry performance..

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    What's in this report

    What is the Structural Steel Erection Services Industry?

    Industry companies primarily erect metal silos, storage tanks or structural steel components for buildings or other structures such as bridges, overhead cranes and electricity transmission towers. This can also include the on-site fabrication of these materials.

    Industry Products
  • Welding work and fabrication
  • Assembly work
  • Maintenance and repair
  • Industry Activities
  • Welding work on construction projects
  • Reinforcing steel erection services
  • Joining structural steel components, such as trusses
  • Erection and maintenance of storage tanks (including silos) and cooling towers
  • Erection and maintenance of metal and structural steel on buildings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from commercial and industrial building construction
  • Demand from multi-unit apartment and townhouse construction
  • Private non-residential construction capital expenditure
  • Demand from heavy industry and other non-building construction
  • year bond rate

  • Current Performance
  • Commercial construction recovery
  • Slump in infrastructure
  • Apartment construction growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Building and infrastructure markets
  • Profit and job growth
  • Table: Structural Steel Erection Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Structural Steel Erection Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Electricity, Gas, Water and Waste Services
  • Multi-Unit Apartment and Townhouse Construction
  • Heavy Industry and Other Non-Building Construction
  • Commercial and Industrial Building Construction

  • Key Selling Industries
  • Machinery and Scaffolding Rental
  • Metal and Mineral Wholesaling
  • Structural Metal Product Manufacturing
  • Structural Steel Fabricating

  • Products & Services
  • Welding work and fabrication
  • Maintenance and repair
  • Assembly work
  • Chart: Structural Steel Erection Services Industry Products and Services Segmentation

  • Demand Determinants
  • Non-residential building construction
  • Non-building (or engineering) construction
  • Residential construction

  • Major Markets
  • Commercial building contractors and developers
  • Engineering construction contractors, developers and owners
  • Residential building contractors and developers
  • Chart: Major Market Segmentation for the Structural Steel Erection Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Structural Steel Erection Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Structural Steel Erection Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Structural Steel Erection Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Structural Steel Erection Services Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Metallic Inert Gas systems.
  • Oxy-Acetylene Welding System
  • A welding system that involves the application of a concentrated flame to the work piece to render it sufficiently molten.
  • Steel Fabricator
  • A person or firm engaged in fabricating structural steel components for incorporation in buildings or other structures.
  • Tig
  • Tungsten Inert Gas systems.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Structural Steel Erection Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Structural Steel Erection Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Structural Steel Erection Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Structural Steel Erection Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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