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In the U.S., about 10,000 companies provide highway and street construction services, with combined annual revenues of about $70 billion. Most contractors in this segment are small; a typical company has $5 million of annual revenue and fewer than 50 employees. Establishments in this segment include: (1) those responsible for the entire construction (i.e., new work, reconstruction, or repairs) of highways, streets, roads or airport runways; (2) highway and street construction management firms; and (3) special trade contractors engaged in performing subcontract work primarily related to highway and street construction (e.g., grading for highways, installing guardrails, public sidewalk construction). The primary activities of these establishments are: - Highway, street and road construction;
- Airport runway construction;
- Private road, driveway and parking lot construction;
- Highway and street lighting and signage installation; and
- Laneway barrier and sound barrier construction.
More than half (55 percent) of road construction work in the U.S. is new construction; 30 percent consists of alterations or reconstruction; and 15 percent is maintenance and repair. The U.S. has about 1.5 million miles of unpaved roads, and 2.5 million miles of paved roads. In 2004, the highway, street and bridge construction industry employed approximately 348,000 wage and salary workers, comprising 5 percent of almost 7 million construction workers in the U.S. Annual revenue per highway and street employee is about $200,000. Median hourly earnings for construction laborers in highway, street and bridge construction were $13.55 in May 2004. Construction laborers on heavy and highway construction sites perform such highly specialized tasks as operating laser guidance equipment to place pipes and transporting and setting explosives for tunnel, shaft and road construction. Key Trends in the Industry Increased Road Construction Funding – From 2000 to 2002, state and local spending on roads increased 17 percent. According to the Associated General Contractors, highway and street construction will benefit in 2006 from the passage of a higher level of federal aid, but federal and state highway trust funds are getting less revenue than anticipated because higher gasoline prices have induced motorists to buy less fuel. By 2007, highway spending could stall, AGC predicts. Infrastructure Deterioration – The U.S. has nearly 2.5 million miles of interstates, freeways, expressways, and local highways, and much of the U.S. interstate system is more than 30 years old. Critical Issues Seasonal Workflow – In much of the U.S., highway construction can"t be done in the winter or rainy seasons. Contractors usually maintain a core labor force of skilled workers and hire extra workers during the peak season of April until August. Finding and training these seasonal workers is sometimes difficult, especially for smaller companies. Work Safety Issues – Liability insurance coverage and strong safety practices are essential in this hazardous segment.
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