Laboratory Design & Build Contractors in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS OD5833Revenue
$10.6bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
62,967
Businesses
5,905
Wages
$X.Xbn
Laboratory Design & Build Contractors in the US industry analysis
The need for accelerated vaccine development and treatment options led to a construction boom in the life-sciences sector amid the pandemic. Companies and institutions rushed to create state-of-the-art research spaces, resulting in over 31.0 million square feet of new labs built by the fourth quarter of 2021. Still, interest rate hikes slowed this growth. Industry revenue has been decreasing at a CAGR of 1.4% over the past five years to total an estimated $10.6 billion in 2024, including an estimated decrease of 2.2% in 2024.
Trends and Insights
- The pandemic spurred new construction, with much of this growth from the life-science market. Interest rate hikes led clients to prefer smaller, cheaper projects, cutting revenue growth.
- Growth from new construction projects has been volatile. Contractors saw a surge in life science laboratory builds post-COVID, but expenditures have dropped following vaccine rollouts and interest rate hikes.
- Contractors heavily concentrate in the West. Many higher education and life science research institutions in California encourage this establishment. This support bolsters the region's status as a hub for specialized contractors.
- Competition among lab design and build contractors is stiff. They vie to submit the lowest bid in a fierce, price-based rivalry, all seeking to secure coveted contracts.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.4 % over the past five years, to reach an estimated $10.6bn in 2024.
Trends and Insights
Demand for science labs soars during the pandemic
- The pandemic triggered record-breaking levels of laboratory and life-science building construction. In particular, companies scrambled to develop vaccines and treatments for the COVID-19 pandemic.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Venture capital companies to reshape the landscape
- Historically, large pharmaceutical companies have dominated R&D and, by extension, laboratory design contracts, creating a tightly contested competitive environment. Smaller, cutting-edge life-science companies, backed by venture capital, will increasingly enter the market to create state-of-the-art laboratories and research facilities.
Biggest companies in the Laboratory Design & Build Contractors in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
LCS Constructors | 37.0 | 0.9 | 2.4 | |
The Walsh Group Ltd. | 13.9 | 0.3 | 2.4 | |
The Whiting-Turner Contracting Company | 5.6 | 0.1 | 2.4 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including New construction, Additions and renovations and Repair and maintenance. New construction is the largest segment of the Laboratory Design & Build Contractors in the US.
Trends and Insights
Contractors faced volatility in new work
- This segment comprises the designing and building of new laboratories.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Industrial Building Construction in the US
- Commercial Building Construction in the US
- Municipal Building Construction in the US
Complementors
- Laboratory Testing Services in the US
- Diagnostic & Medical Laboratories in the US
International industries
- Commercial Building Construction in Canada
- Commercial Building Construction in the UK
- Building Construction in China
- Building Construction in Europe
Table of Contents
About this industry
Industry definition
This industry designs and builds laboratories for customers. Design considerations include minimizing cost, choosing a suitable location, hazardous chemical storage, adhering to federal regulations and providing explosion-proof electrical fixtures of walls. Construction includes new construction and laboratory relocations, additions or renovations.
What's included in this industry?
Laboratory additions and remodelingNew laboratory constructionLaboratory remodeling and repair servicesSustainability design servicesCompanies
LCS ConstructorsThe Walsh Group Ltd.The Whiting-Turner Contracting CompanyPurchase this report to view all 3 major companies in this industry.
Related Terms
DEVELOPMENT CONSORTIUMTENDERCOMPUTER-AIDED DESIGN (CAD)Industry Code
NAICS 54131 - Laboratory Design & Build Contractors in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The pandemic spurred new construction, with much of this growth from the life-science market. Interest rate hikes led clients to prefer smaller, cheaper projects, cutting rev...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Growth from new construction projects has been volatile. Contractors saw a surge in life science laboratory builds post-COVID, but expenditures have dropped following vaccine...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Contractors heavily concentrate in the West. Many higher education and life science research institutions in California encourage this establishment. This support bolsters th...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition among lab design and build contractors is stiff. They vie to submit the lowest bid in a fierce, price-based rivalry, all seeking to secure coveted contracts.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The industry is notably fragmented. Larger companies often outsource to subcontractors, while small ones form consortiums to boost negotiation power and secure more significa...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of LCS Constructors's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of The Walsh Group Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of The Whiting-Turner Contracting Company's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for LCS Constructors, and factors influencing its performance in the industry
- Description and key data for The Walsh Group Ltd., and factors influencing its performance in the industry
- Description and key data for The Whiting-Turner Contracting Company, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Contractors must meet rigorous design guidelines. This is especially true for labs, where ventilation, cooling and safety systems are critical. More detailed specifications e...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Laboratory design and build contractors are struggling with dropping profits caused by sluggish growth and fierce price competition. In addition, soaring labor costs amid wor...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Laboratory Design & Build Contractors in the US industry in United States in 2024?
The market size of the Laboratory Design & Build Contractors in the US industry in United States is $10.6bn in 2024.
How many businesses are there in the Laboratory Design & Build Contractors in the US industry in 2024?
There are 5,905 businesses in the Laboratory Design & Build Contractors in the US industry in United States, which has grown at a CAGR of 2.5 % between 2019 and 2024.
Has the Laboratory Design & Build Contractors in the US industry in United States grown or declined over the past 5 years?
The market size of the Laboratory Design & Build Contractors in the US industry in United States has been declining at a CAGR of 1.4 % between 2019 and 2024.
What is the forecast growth of the Laboratory Design & Build Contractors in the US industry in United States over the next 5 years?
Over the next five years, the Laboratory Design & Build Contractors in the US industry in United States is expected to grow.
What are the biggest companies in the Laboratory Design & Build Contractors in the US market in United States?
The biggest companies operating in the Laboratory Design & Build Contractors market in United States are LCS Constructors, The Walsh Group Ltd. and The Whiting-Turner Contracting Company
What does the Laboratory Design & Build Contractors in the US in United States include?
Laboratory additions and remodeling and New laboratory construction are part of the Laboratory Design & Build Contractors in the US industry.
Which companies have the highest market share in the Laboratory Design & Build Contractors in the US in United States?
The company holding the most market share in United States is LCS Constructors.
How competitive is the Laboratory Design & Build Contractors in the US industry in United States?
The level of competition is high and steady in the Laboratory Design & Build Contractors in the US industry in United States.
