Related Links: Beware the Recover: What History Teaches Prospering in Cyclical Markets In 2000, I wrote that the number of existing general contracting enterprises would be reduced by 20% by 2020. Recently, I started to update my research for the years 2003 to 2012. At first, it looked like I was wrong because, leading up to 2008, mergers and acquisitions slowed. However, the recession brought changes.From 2008 to 2012, the entire construction industry shrank by 19.6%. During the slowdown, larger general contractors held on to more market share than smaller ones. ENR's top 100 contractors declined only 14.5%, and the
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.