Power Line & Telecommunications Infrastructure Construction Contractors Industry Profile

Companies in this industry construct power lines and towers, power plants, and radio, TV, and telecommunications towers. Major companies include Dycom Industries, Henkels & McCoy, MasTec, and SBA Communications (all based in the US), as well as Nippon COMSYS (Japan), Sirti (Italy), and TKH Group (the Netherlands).

Worldwide, demand for electric power is increasing. The World Energy Council expects renewable energy sources to be the primary energy mix to have the highest in term of growth rates by 2050. Further, fossil fuels are still expected to remain dominant. Countries with long-established power transmission and distribution networks are working to modernize and expand them. Developing nations with improving living standards may leap ahead to new smart power grids.

The US power line and telecommunications infrastructure construction contractors industry includes about 6,100 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $65 billion.

COMPETITIVE LANDSCAPE

Demand is driven by increased electrical transmission and distribution requirements, as well as the need for faster and more robust wireless and wired telecommunications services. The profitability of individual companies depends on their ability to win contracts and accurately bid on projects. Large companies have advantages in their ability handle multiple projects in various locations. Small companies can compete by specializing in services offered or by focusing on a specific geographic area.

The US industry is highly concentrated with the top 50 companies accounting for ...