Procurement Market Intelligence Report
Land Preparation Services
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Land Preparation Services Global Overview
Definition
Summary
This report is intended to assist buyers of land preparation services, including digging, demolition, rock removal, timber removal, land reclamation, earth moving, pile driving, trenching and blasting. These services are commonly supplied by construction companies and are used to clear and prepare land sites for new developments. Buyers typically procure land preparation services for purposes such as mining, construction, agriculture and engineering projects.
This Report Includes:
- Demolition
- Land Reclamation
- Earth Moving
- Digging
Not in this Report:
- General Contracting Services
- Structure Construction
- Landscaping Services
Global Land Preparation Services Procurement Trends
Discover the top international trends affecting procurement in the global Land Preparation Services market.
Warning Trends
Public sector demand slumps as the government enters shutdown
- On October 1, the US federal government entered a shutdown after negotiations for a new appropriations bill failed.
- During a government shutdown, essential federal government operations, such as law enforcement, air-traffic control, and social security, persist, while nonessential operations are paused and workers involved in these operations are furloughed. Thus, the current shutdown is expected to result in 750,000 federal workers being furloughed, representing a $400 million reduction in daily expenditure by the federal government.
- This significant reduction in federal spending and operations will affect the entire US economy, weakening aggregate demand and slowing economic growth. For example, the 35-day government shutdown in Q1, 2019, reduced aggregate demand in both the public and private sectors, resulting in a 0.2% reduction in GDP growth that quarter.
- The effects of the shutdown are likely to be most acute in markets where the public sector is a major buyer segment, weakening demand and increasing average vendor risk by destabilizing important revenue streams.
- As negotiations for a new appropriations bill to reopen the government remain ongoing, ProcurementIQ will continue to monitor the situation and update this story with the latest information.
Tariffs to negatively impact the building and construction machinery sector
- The Trump Administration’s reciprocal tariffs, which apply general tariff rate increases to most countries the United States trades with, are set to take effect on August 7, after the administration finalized the national rates on August 1. As a result, leading sources of imported construction machinery face significantly higher tariff rates, including Japan (15.0%), Mexico (25.0%), South Korea (15.0%), the European Union (15.0%), the United Kingdom (10.0%), China (54.0%), and Canada (35.0%).
- The increase in tariffs on building and construction machinery imported from tariff-impacted countries will add to the price of imports, which are typically passed on to buyers in the form of higher prices. According to The Budget Lab at Yale, the additional tariffs on imports will increase overall prices for machinery and equipment by 13.3%.
- Additionally, the administration has already implemented 50.0% tariffs on all aluminum and steel imported into the United States, with the sole exception of imports from the United Kingdom. These tariffs will increase input costs even for construction machinery suppliers with domestic manufacturing operations.
- According to an April 2025 survey from Construction Equipment Magazine, around half of the respondents reported that the higher tariffs will increase operating costs by up to 15.0%, and more than half said they plan to pass those increases along to buyers.
- As many building and construction machinery brands source parts and components such as steel, engines, and electronics from foreign countries, higher tariff rates will put upward pressure on prices and lead to greater rental rates as manufacturers and dealers pass on costs. In addition, suppliers that source parts from tariff-affected regions may see supply chain disruptions as they seek alternative suppliers to mitigate tariff impacts.
Global Land Preparation Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 39,625 |
| #2 China | 38,325 |
| #3 Africa & Middle East | 21,530 |
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2
Geography Drilldown - US
Average Cost of Land Preparation Services
United States
2026 Market Pricing$0.10 to $XXX.XX
per square footAverage Price
Prices in the Land Preparation Services market range from $0.10 to $XXX.XX, depending on Project Scope, Project Complexity and Location. For example, lower prices are associated with Land clearing ($1.00 to $10.00 per square foot) and Leveling ($0.10 to $10.00 per square foot), whereas higher prices are associated with Excavation ($30.00 to $300 per square foot).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Land Preparation Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Land Preparation Services market, prices in the US have grown 2.2% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Land Preparation Services
Total cost of ownership is Low in the Land Preparation Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Delays may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Billed During
Travel
Unforeseen
Delays
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.6 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
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- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Heavy Construction Equipment Rental Firms
- Construction & Mining Equipment Wholesalers
- Fuel Dealers
2nd
Tier Suppliers
- Construction Machinery Manufacturers
- Mining, Oil & Gas Machinery Manufacturers
- Petroleum Refineries
Biggest Land Preparation Services Suppliers in the US by Revenue
The largest Land Preparation Services vendors by revenue in the US are Mastec, Inc., Northstar Group Services, Inc. and Keller Group PLC. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Keller Group PLC | Global | London, UK | >10,001 | 5-10 | ||||
| Mastec, Inc. | National | CORAL GABLES | >10,000 | < 5 | ||||
| Beaver Excavating Company | National | Canton, OH | 501-1,000 | < 5 | ||||
| Berkel & Company Contractors Inc. | International | Bonner Springs, KS | 501-1,000 | < 5 | ||||
| Condon-Johnson & Associates, Inc. | Regional | Oakland, CA | 201-500 | < 5 | ||||
| Malcolm Drilling Company Inc. | National | San Francisco, CA | 201-500 | < 5 | ||||
| Remedial Construction Services, L.P. | International | Houston, TX | 501-1,000 | < 5 | ||||
| Northstar Group Services, Inc. | National | New York , NY | 501-1,000 | < 5 | ||||
| J Derenzo Co | Local | Brockton, MA | 51-100 | < 5 | ||||
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Profit Analysis
The average profit margin across vendors in the Land Preparation Services market is 4.5% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The market for land preparation services has a low market share concentration due to the high availability of suppliers, with over an estimated 16,600 suppliers operating in the United States. The top five vendors in the market account for less than 30.0% of the total market share.
Average vendor risk is moderate as vendors face high competition with each other, yet have relatively strong profit margins and face low competition from substitutes.
Supply chain risk for land preparation services is moderate due to high volatility among upstream industries, including heavy equipment, construction, mining, manufacturing, and wholesaling industries.
The United States is a net importer of earthmoving equipment, indicating foreign presence in the market which provides buyers with the ability to access unique, competitively priced products from abroad. While buyers may be able to leverage foreign products in negotiations, these products may be more susceptible to overseas supply chain disruptions and shifts in trade policies.
Supplier Information
Keller Group PLC
Keller Group PLC is a public company operating globally in the construction and professional, scientific & technical services sectors. The company's offerings include land preparation services, building site preparation services and geotechnical engineering services. Founded in 1989, the company is currently... Subscribe to learn more
Beaver Excavating Company
Beaver Excavating Company is a private company operating nationally in the construction sector. The company's offerings include land preparation services and building site preparation services. Founded in 1953, the company is currently headquartered in Canton, Ohio, United States of America with an estimated... Subscribe to learn more
Berkel & Company Contractors Inc.
Berkel & Company Contractors Inc. is a private company operating internationally in the construction sector. The company's offerings include land preparation services and building site preparation services. Founded in 1951, the company is currently headquartered in Bonner Springs, Kansas, United States of... Subscribe to learn more
Condon-Johnson & Associates, Inc.
Condon-Johnson & Associates, Inc. is a private company operating regionally in the construction sector. The company's offerings include land preparation services and building site preparation services. Founded in 1974, the company is currently headquartered in Oakland, California, United States of America... Subscribe to learn more
J Derenzo Co
J Derenzo Co is a private company operating locally in the construction sector. The company's offerings include demolition services, land preparation services and building site preparation services. Founded in 2012, the company is currently headquartered in Brockton, Massachusetts, United States of America... Subscribe to learn more
Malcolm Drilling Company Inc.
Malcolm Drilling Company Inc. is a private company operating nationally in the construction sector. The company's offerings include land preparation services and building site preparation services. Founded in 1962, the company is currently headquartered in San Francisco, California, United States of America... Subscribe to learn more
Manafort Brothers Inc.
Manafort Brothers Inc. is a private company operating regionally in the construction sector. The company's offerings include demolition services, land preparation services and building site preparation services. Founded in 1919, the company is currently headquartered in Plainville, Connecticut, United States... Subscribe to learn more
Mastec, Inc.
MasTec, Inc. is an infrastructure construction company that engineers, builds, installs, maintains, and upgrades communications, energy, utility, and other infrastructure. It services include wireless, wireline/fiber, and customer fulfillment activities; power delivery infrastructure, including transmission,... Subscribe to learn more
Northstar Group Services, Inc.
Northstar Group Services, Inc. is a private company operating nationally in the construction, professional, scientific & technical services and administration, business support and waste management services sectors. The company's offerings include demolition services, land preparation services, hazardous Subscribe to learn more
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Procurement Management KPIs for the Land Preparation Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Satisfaction (CSAT) and Employee Training Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Compliance and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Satisfaction (CSAT) |
|
Customer satisfaction rate Number of unsatisfied customers |
Looking at a vendors' customer satisfaction rate is a great indicator of the reliability and quality of work of a vendor. Land preparation services are costly and buyers are reliant on quality service to continue their projects on the site. A vendor with customer satisfaction below 95% may pose a risk to buyers. |
| Employee Training Rate |
|
Training length On-going trainings per year |
Buyers should consider a vendor's training program to assess the expertise and qualification of employees assigned to their project. As land preparation services are specialized and buyers' needs are unique for each project, highly trained and knowledgeable staff is necessary for quality work. |
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Regulation
How do you manage regulatory change?
How has regulation changed your pricing? How do you expect it to impact prices in the future?
Cost Containment
What percentage of your projects have run over budget? How did those projects proceed?
What cost-saving measures do you implement at your firm?
Value-Added Services
What additional support services are included in your quoted price?
What is the typical turnaround time for your services?
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Land Preparation Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization, including its size, location and operating sector.
Buyers should provide a website address or link where prospective suppliers can attain additional information on their organization, if applicable.
Statement Of Need
Buyers must specify the total area of land that requires preparation services.
Buyers should provide a sketch of the entire site, clearly marking the areas that require preparation services.
Project Budget
Buyers should estimate or specify their total budget for land preparation services.
Buyers should identify their preferred payment method and schedule.
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