NAICS 2371

Utility System Construction

Utility system construction (NAICS 2371): Electric power, natural gas, water, and telecommunications infrastructure construction and installation services.

Published by VantaInsights Research·Methodology·Data Sources· AI-drafted
Built on data from Census Bureau CBP Bureau of Labor Statistics Federal Reserve FRED SEC EDGAR

Industry at a Glance

Sector-wide aggregates across all businesses classified under NAICS 2371 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.

Employment
627K
US Census CBP · 2023 · NAICS 2017
Establishments
20K
US Census CBP · 2023 · NAICS 2017
Annual Payroll
$54.7B
US Census CBP · 2023 · NAICS 2017
Avg Annual Wage
$87,180
Derived from US Census CBP · 2023 · NAICS 2017
Market Size
$203.9B
US Census Economic Census · 2022 · NAICS 2017

Industry Overview

Utility system construction (NAICS 2371) encompasses the building, installation, and maintenance of infrastructure systems that deliver essential services to residential, commercial, and industrial properties. This includes construction of electric power lines and related structures, natural gas pipeline systems, water and sewerage lines, and telecommunications infrastructure. These contractors work on projects ranging from small residential connections to large-scale utility distribution networks, serving as critical intermediaries between utility companies and end-users. The industry is essential to economic development, as reliable utility infrastructure underpins all other economic activity and quality of life in communities.

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Industry Trends

01

Grid modernization and smart meter infrastructure deployment are driving increased construction activity as utilities upgrade aging systems to improve efficiency, reduce losses, and enable real-time monitoring.

02

Renewable energy integration projects are creating new demand for utility system construction, including solar and wind farm connections, battery storage systems, and grid reinforcement work.

EPA

Water infrastructure replacement and aging pipe renewal programs are accelerating due to EPA regulations and increased focus on water quality, creating sustained demand for water and wastewater line construction.

04

Fiber optic and broadband infrastructure deployment, particularly in rural areas following government funding initiatives, is expanding the scope of utility construction beyond traditional electric and gas work.

05

Labor shortages and rising wage pressures are reshaping project economics and contractor profitability, pushing greater adoption of mechanization, prefabrication, and efficiency improvements.

Specialty Reports Available on Request

3 specialty industriesavailable on request
▾
Water & Sewer Line & Related Structures Construction
237110View →
Oil & Gas Pipeline & Related Structures Construction
237120View →
Power & Communication Line & Related Structures Construction
237130View →

Industries

Browse deeper into the NAICS hierarchy.

237110 reports

Water & Sewer Line & Related Structures Construction

237120 reports

Oil & Gas Pipeline & Related Structures Construction

237130 reports

Power & Communication Line & Related Structures Construction

Frequently Asked Questions

What is NAICS 2371? ▾
NAICS 2371, Utility System Construction, classifies contractors and construction firms that specialize in building and installing infrastructure systems for utilities. This includes electric power distribution lines, natural gas pipelines, water and sewer mains, and telecommunications systems. These firms typically work under contract with utility companies or government agencies to extend, upgrade, or maintain critical infrastructure networks.
What types of projects do utility system construction companies undertake? ▾
Utility system construction firms handle diverse projects including installation of overhead and underground electric transmission and distribution lines, natural gas pipeline construction and maintenance, water main and sewer line installation, stormwater system construction, and increasingly, fiber optic network deployment. Projects range from routine maintenance and small extensions to major infrastructure buildouts supporting regional growth and modernization initiatives.
How do regulatory requirements impact utility system construction? ▾
Utility system construction is heavily regulated by federal, state, and local authorities governing safety standards, environmental protection, permitting, and workforce qualifications. Contractors must comply with OSHA requirements, utility commission standards, environmental regulations like wetland protection, and obtain necessary permits before construction. These requirements increase project complexity and timelines but ensure infrastructure safety and reliability.
What is driving growth in utility system construction? ▾
Primary growth drivers include infrastructure replacement cycles for aging systems, grid modernization initiatives, renewable energy integration projects, broadband expansion programs, and increased investment in water infrastructure due to quality concerns. Additionally, population growth in certain regions and regulatory mandates for system upgrades create sustained demand for construction services.
What skills and certifications are required in this industry? ▾
Utility system construction requires specialized skills including electrical licensing (journeyman and master electrician certifications), gas fitter and plumber licenses, heavy equipment operation certifications, and safety credentials such as OSHA training. Many positions require apprenticeship programs and ongoing professional development to maintain current knowledge of codes, safety standards, and evolving technologies.

Related Industries

Land Subdivision 2372Highway, Street, & Bridge Construction 2373Other Heavy & Civil Engineering Construction 2379Electric Power Generation, Transmission & Distribution 2211

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