America has a growing construction and steel industry, which has shaped the market of the prefabricated steel industry. Moreover, the investment in the construction market of the U.S. is escalating at a rate of 5-6 % annually. Hence, the increase in the investment along with the lack of skilled labour has created an imperative need for the adoption of the methods such as modular and prefabricated steel building. Owing to the various advantages of these buildings such as reduced construction time, flexibility to expand, large clear spans, quality control, low maintenance and energy efficient, these buildings are extensively used for industrial, commercial, corporate, warehouses, bridges, and residential construction, among others.
According to the latest BIS Research report, titled ‘The Americas Prefabricated Steel Building Market - Analysis and Forecast (2017-2025)’, the market had a volume of 1.20 million tons in the year 2016 and is expected to grow at a CAGR of 4.9% from 2017-2025. This significant growth is attributed to the increase in the market penetration of modular and pre-engineered technologies in various countries of the region, owing to the cost and time savings offered in the process.
America has one of the largest construction markets in the world and hence the market is severely disintegrated into several small-sized to medium-sized companies that compete with each other as well as with large enterprises. With the development of the global and regional markets, companies operating in this industry are compelled to come up with collaborative strategies to sustain in the intensive competition. Recently, there has been a growth in the business expansion activities such as mergers, acquisitions, partnerships and collaborations of large construction companies with small manufacturers dealing in modular parts, pre-cut and pre-engineered building components. For instance, in August 2017, a commercial builder HITT Contracting Inc. acquired Trademark Construction based in Houston and GC American Construction based in New York City to expand their business and presence in the global market.
The government of the U.S.A is creating numerous opportunities in the market by opting sustainable method of constructions, various building certification criteria such as LEED Certification. However, the prominent market players are facing numerous challenges in the market such as the extremely high cost of the building components and their transportation cost. The contractors face extreme difficulty in shipping the components to the desired locations due to both road size and load restrictions mandated by the government. Furthermore, the transporters have to deal with multiple governmental agencies to get through a single state, which also causes a substantial delay in approval of the transportation loads. Apart from this, for high rise buildings, the architects and civil engineers do not prefer this method because of the reduction in the flexibility due to the height of the building.
BIS Research has conducted an extensive research on the Americas prefabricated steel building market and compiled the observation and insight in this report. The market intelligence report aims at providing an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which include drivers, restraints, and opportunities prevailing in the industry.