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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  • Canada
  • United States
  • Mexico
  • Latin America
  • South America
  • India
  • China
  • Europe
  • Africa & Middle East
  • Australi & New Zealand
  • Oceania & Southeast Asia

2

Geography Drilldown - US

Average Cost of Land Preparation Services

United States

2026 Market Pricing
$0.10 to $XXX.XX
per square foot

Average 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)

2.2%
Compound Annual Growth Rate
United States (2025-2028)

Compound Annual Growth Rate

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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

Based on a survey of the project and a determination of the scope of work, buyers and vendors negotiate on a price that typically covers the entire project.

Billed During

Travel

Buyers procuring services from a vendor that is not within reasonable proximity to the project site may have to pay for travel and lodging for workers. This would be decided in the negotiation process.

Unforeseen

Delays

Delays in land preparation services can cause significant unforeseen costs, especially in larger projects. Nonetheless, the majority of hidden costs can be minimized using thorough research, planning and time management.

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

-1.6

Buyer power forecasts: your glimpse into the future

Develop strategies for the upcoming year and identify unforeseen opportunities for buying now

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  • Near-real-time updates to current and forecast Buyer Power Scores
  • Methodology and weightings for Buyer Power Score Components

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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
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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.

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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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