The industry's diverse client base has ensured revenue growth over the past five years
Melbourne, Australia (PRWEB) July 25, 2012
The Occupational Health & Workplace Safety Services industry in Australia has been affected by safe and risky conditions over the past five years. Some of its markets have prospered while some customers have been distressed. According to IBISWorld analyst Aries Nuguid, “the diversity of the industry's client base has helped ensure that industry revenue has grown over the past five years”. On the other hand, business confidence plummeted as the global economic downturn hit Australia. Consequently, industry customers cut back on discretionary services and reduced their employee numbers to sustain their profitability. The higher unemployment meant less need to secure workplaces. Overall, industry revenue is expected to grow at a slow annualised 0.8% over the five years through 2012-13. The same trends have caused industry profitability to decline over the past five years. Industry revenue is expected to grow at a much healthier rate of 4.1% in 2012-13 as some businesses begin the implementation of new regulations due to the shift to harmonised occupational health and safety (OH&S) laws.
“Safer growth conditions are anticipated for the Occupational Health & Workplace Safety Services industry over the next five years”, says Nuguid. Growth in revenue will be due to the harmonisation of OH&S regulations across Australia, which will mean that businesses may have to meet new regulations. Businesses will hire industry service providers to ensure their employees work in safe environments that meet safety laws. This activity will boost industry revenue in the short to medium term. The increase in demand will enable industry firms to widen operating profit margins.
Market share concentration in the industry is low due to the prevalence of small OH&S consultancies and auditors. Additionally, the nature of Australia's economy (which is populated by varied and small enterprises) means that the most profitable business strategy of the industry's largest participants is to focus on the economy's largest businesses. This leaves much room for smaller companies to provide niche services such as test and tagging. The two largest companies in the industry are Bureau Veritas Australia Pty Ltd and SGS Australia Holdings Pty Limited. For more information, visit IBISWorld’s Occupational Health & Workplace Safety Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry provides advice and assistance to organisations and companies to assure safe and healthy working conditions for employees. Firms provide training, outreach, education and assistance.
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
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