Melbourne, Australia (PRWEB) September 01, 2012
The Painting and Decorating Services industry in Australia has enjoyed moderate growth over the past five years. Industry revenue has grown an annualised 0.8% over the five years through 2012-13, remaining resilient despite faltering construction demand. Economic uncertainty, driven by the global financial crisis and credit constraints, has affected the industry and specifically private capital expenditure. Due to painting and decorating services being heavily reliant on the residential market, decreases in private capital expenditure have adversely affected industry performance. According to IBISWorld analyst Jeremy Edwards, “economic stimulus packages bolstered public capital expenditure in the past five years, helping offset the effects of poor private sector expenditure”. Low market concentration makes it easy for businesses to enter and exit the market dependent on available profit.
The outlook for the Painting and Decoration Services industry in Australia is positive, as construction levels are expected to increase due to a revitalised private sector post financial crisis. Edwards adds, “consumer and business sentiment is forecast to rise and an increase in real household disposable income is expected to translate into greater household outsourcing”. Industry revenue is expected to grow 2.4% in 2012-13 to total $5.87 billion. Over the next five years, the Painting and Decorating Services industry is estimated to grow. Higher levels of private construction are forecast to greatly benefit the industry as it faces increased competition from DIY markets and waning public expenditure.
Increased profitability is expected in the short term due to higher levels of revenue, however as more companies enter the market, existing businesses will lose market share and profit will narrow. The Painting and Decorating Services industry in Australia exhibits a low market share concentration of ownership. The number of businesses in the industry is characterised by a high number of individual contractors. The two largest operators in the industry are Programmed Maintenance Services and Spotless.
For more information, visit IBISWorld’s Painting and Decorating Services report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
Companies in this industry paint, decorate or wallpaper houses or other structures.
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.