Installers have weathered volatile demand conditions
Melbourne, Australia (PRWEB) December 20, 2012
Artificial turf has reached a position where many believe it to be comparable to natural turf. This comparison has been a boon to the Artificial Grass Turf Installation industry. According to IBISWorld industry analyst Craig Shulman, “the industry has been able to sell this grass alternative as being significantly lower cost due to lower maintenance requirements and its ability to go without water at a time when water conservation has been heavily enforced by government bodies”.
Over the past five years, the industry has been through some changes. “Prior to the global financial crisis, a healthy economic environment was encouraging spending on artificial turf”, says Shulman. The advent of the global financial crisis caused natural drivers like private dwelling and business capital expenditure to stagnate in 2008-09. However, to kick-start the economy, the Federal Government introduced an economic stimulus program that led to $1.2 billion being allocated towards refurbishing outdoor areas for schools and sports grounds through the National School Pride Program. Consequently, revenue spiked in 2009-10 as the education industries indulged in their newfound funds. This was a one-off package, and therefore there was a significant drop off in industry demand in the following year. Since then the industry has been struggling, as the private sector gradually gains confidence. These volatile conditions have led to industry revenue growing at an annualised 1.6% over the five years through 2012-13.
The Artificial Grass Turf Installation industry's future performance will be largely dependent on the value judgement that the product promotes. While the maintenance costs are lower than for natural turf, both the WA Department of Sport and Recreation and Victoria's Department of Planning and Community Development have found that the life cycle costs of sporting grounds that use artificial turf over long periods are greater as turf replacement costs are significantly higher. As the industry is already struggling to get its product used on a professional level in Australia, this economic argument and rising water availability over the next five years are expected to prevent growth from schools and sporting grounds. Rather, growth is expected to come from home construction, but with rising housing density in major cities, this is expected to be subdued as well.
For more information, visit IBISWorld’s Artificial Grass Turf Installation report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
Firms in this industry install artificial turf and synthetic grass. The industry includes installation work performed by integrated manufacturers and firms that install artificial turf and grass supplied by third parties. Manufacturing-related activities are excluded from the industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.