Structural Steel Fabricating in Australia Industry Market Research Report now updated by IBISWorld

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The Structural Steel Fabricating industry’s fortunes are inextricably tied to the level of construction activity. Industry performance thus reflects trends prevalent in the housing and non-housing construction markets. For these reasons, industry research firm IBISWorld has updated its report on the Structural Steel Fabricating industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The Structural Steel Fabricating industry contends with rising import competition from low-cost producers

The Structural Steel Fabricating industry in Australia reflects trends prevalent in the housing and non-housing construction markets. Its fortunes are inextricably tied to the level of construction activity. This relationship has historically provided the industry with strong opportunities to grow, until the onset of the economic downturn in late 2008. According to IBISWorld industry analyst David Stephen, “prior to the downturn, the industry was buoyed by robust activity in the non-residential construction industries, especially institutional buildings and public infrastructure works such as roads and bridges”. The overall situation for the industry has not been ideal since the economic collapse, as construction was effectively crippled. The Structural Steel Fabricating industry has also had to contend with rising import competition from low-cost producers in China and Indonesia.

Consumer and business confidence plummeted in late 2008, with access to credit becoming difficult to secure. Stephen adds, “this led to a dramatic decline in the number of housing starts in 2008-09”. Housing starts returned to strong growth in 2009-10, before a downward correction towards more sustainable levels during the following year. Consequently, steel prices, which rose strongly prior to the downturn, declined sharply due to anaemic demand conditions. This fall was partially offset by modest growth in non-residential construction. In the five years through 2011-12, industry revenue is expected to grow by 1.0% per annum to total $7.76 billion. This includes forecast growth of 1.5% during 2011-12. Domestic demand is expected to be erratic over the period, but is expected to continue its long-term upward trend. The Structural Steel Fabricating industry exhibits a medium level of market share concentration, and the two major players are Arrium Limited and BlueScope Steel.

Over the five years through 2016-17, the Structural Steel Fabricating industry is expected to make a steady recovery, underpinned by improved economic conditions buoying construction activity. Non-residential construction will lead the charge, followed by heavy industry and non-building construction. Steel prices are forecast to decline over the next five years, thus encouraging construction activity and benefit the industry in the form of increased profit.

For more information, visit IBISWorld’s Structural Steel Fabricating report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Firms in this industry manufacture structural steel components for incorporation in buildings or other structures.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

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.

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Gavin Smith
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