Maintenance and reconstruction activity from flood-affected regions boosted demand for plumbing contractors
Melbourne, Australia (PRWEB) August 19, 2012
From unclogging drains to the installation of high-pressure industrial steam pipes, operators in the Plumbing Services industry are required in the day-to-day lives of all Australians. Plumbing contractors are also responsible for the connection of household, commercial and industrial appliances involving gases, liquids and waste products.
According to IBISWorld industry analyst, Anthony Kelly, “the Plumbing Services industry is expected to generate revenue totalling $8.65 billion in 2012-13, up 2.7% from the previous year due to improved conditions in the housing, maintenance and industrial markets”. Over the five years through 2012-13, industry revenue is estimated to grow by an annualised 1.0%, lagging behind the moderate growth in GDP. This is due to the minor cyclical contraction in the value of total building construction, but partly buoyed by repair and maintenance activity. Plumbing contractors have also benefited from the flow of work on primary school projects funded by Commonwealth Government's Building the Education Revolution program, and the reconstruction activity in the flood-affected regions of Queensland and Victoria. Over the five years through 2017-18, revenue is forecast to grow. Industry expansion will be underpinned by cyclical growth in the value of total building activity.
The Plumbing Services industry is highly labour intensive, maintaining a sizeable permanent workforce to carry out much of the heavy physical labour. Kelly adds, “many plumbers are employed in other industries including other construction, electricity, gas, water, waste services and mining”. The industry has a fragmented structure, comprising many small-scale contractors contesting a share of narrow geographic markets. A small percentage of businesses employ more than 20 people, and most of the larger contracting firms are capable of undertaking a broad range of construction, mechanical and property maintenance services. The industry’s only major player is Tox Free Solutions Limited.
For more information, visit IBISWorld’s Plumbing Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry consists of contractors that provide general plumbing services. This includes installing and repairing water, sewerage, drainage and gas systems.
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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