Chicago Bridge & Iron Company N.V. provides conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management, and environmental services worldwide. It operates in four segments: Engineering & Construction, Fabrication Services, Technology, and Capital Services. The Engineering & Construction segment provides engineering, procurement, and construction services for energy infrastructure facilities, such as upstream and downstream process facilities for the oil and gas industry, as well as liquefied natural gas liquefaction and regasification terminals, and fossil electric generating plants for the power generation industry. The Fabrication Services segment is involved in the fabrication and erection of steel plate structures; fabrication of piping systems and process modules; and manufacture and distribution of pipes and fittings, and engineered products for the oil and gas, petrochemical, power generation, water and wastewater, mining and mineral processing industries. The Technology segment provides process technology licenses and associated engineering services and catalysts for use in petrochemical and refining industries; and offers process planning, project development, and aftermarket support services. The Capital Services segment offers integrated maintenance, environmental engineering and remediation, construction, program management, and disaster response and recovery services for private-sector customers and governments. The company was founded in 1889 and is headquartered in The Hague, the Netherlands.
Business Analysis of Chicago Bridge & Iron
The Construction and Building Products Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Chicago Bridge & Iron compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Chicago Bridge & Iron to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Chicago Bridge & Iron with an interactive chart.
- Revenue Growth: Chicago Bridge & Iron reported a revenue growth of -17.4% year-on-year during 2016. Heavy Construction Industry grew at -5.7% in the same period
- COGS share of Revenues: As a percentage of revenue, Chicago Bridge & Iron spent 90.4% of its total revenues on COGS. Heavy Construction industry average (COGS share of revenue) in the same period was 81.6%
- R&D share of Revenues: Chicago Bridge & Iron R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Chicago Bridge & Iron spent 3.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Heavy Construction industry average SG&A spending in the same period was 9.5%
- Inventory share of Revenues: As a percentage of revenue, Chicago Bridge & Iron spent 1.8% of its total revenues on Inventories. Heavy Construction industry average Inventory spending in the same period was 8.5%
- Accounts Payable share of Revenues: As a percentage of revenue, Chicago Bridge & Iron invested 10.4% of its total revenues on Accounts Payable (A/P) Heavy Construction industry average Accounts Payable investment in the same period was 12.5%
- Accounts Receivable share of Revenues: As a percentage of revenue, Chicago Bridge & Iron invested 12.1% of its total revenues on Accounts Receivable (A/R). Heavy Construction industry average Accounts Receivable investment in the same period was 43.5%
- PP&E share of Revenues: As a percentage of revenue, Chicago Bridge & Iron invested 5.3% of its total revenues on Property, Plants, and Equipments (PP&E). Heavy Construction industry average PPE investment in the same period was 19.0%
- Intangibles share of Revenues: As a percentage of revenue, Chicago Bridge & Iron invested 31.9% of its total revenues on Intangibles. Heavy Construction industry average Intangibles investment in the same period was 22.1%
- Net Margins: Chicago Bridge & Iron Net Margins in the year 2016 were -2.9%. Heavy Construction industry average Net Margins in the same period were 2.1%
Sector and Industry Association of Chicago Bridge & Iron
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Chicago Bridge & Iron is associated with Industrials Sector Group, Construction and Building Products Sector, and Heavy Construction Industry.
Construction and Building Products sector is comprised of the following industries: Building Materials & Fixtures; Heavy Construction. The definitions for each of the industries is as follows:
- Building Materials & Fixtures industry includes producers of materials used in the construction and refurbishment of buildings and structures, including cement and other aggregates, wooden beams and frames, paint, glass, roofing and flooring materials other than carpets. Building Materials & Fixtures companies also offer bathroom and kitchen fixtures, plumbing supplies and central air-conditioning and heating equipment.
- Heavy Construction industry includes companies engaged in the construction of commercial buildings, infrastructure such as roads and bridges, residential apartment buildings, and providers of services to construction companies, such as architects, masons, plumbers and electrical contractors. Heavy Construction companies also offer construction equipment.
Industry Ranking of Chicago Bridge & Iron
With $10.7 billion revenues, Chicago Bridge & Iron ranked number 7 of all the companies in the US Heavy Construction industry. There were a total of 40 public companies in the US Heavy Construction industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Heavy Construction industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
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- Get free data, charts, and analysis of Chicago Bridge & Ironand its peers on select key performance indicators by clicking the reports provided below