The Oil Drilling Rig Industry is characterized with a few typical work specific to this industry only. The work begins with the search for new oil basins or construction of wells. During this time the services of drilling contractors and se…
BMI View: Q4 2012 data is underlining our view that the US construction industry is experiencing growth
for the first time in seven years. Whilst momentum is strong going into 2013, we believe that in the second
half of 2013 base effects will precipitate a natural slowing in growth, leaving 2013 real growth lower than
2012. Residential construction will remain the main driver of the overall construction sector as nonresidential
experiences mixed fortunes and infrastructure only flat growth. In the latter sector there are
bright spots, primarily stemming from the unconventional energy boom. Over the medium term
(2013-2017), growth will slow, however we anticipate it to remain in positive territory.
Construction spending data for the first ten months of the year shows a significant increase in investment in
the sector, which indirectly feeds through to our forecast for construction industry value added. Between
January and October 2012 construction spending has increased 7.5% year-on-year (y-o-y), making it the
first year of growth in construction investment since 2006.