The industry is expected to continue to strengthen over the short term, reflecting buoyant investment conditions in the industrial property market.
Melbourne, Australia (PRWEB) October 16, 2013
The Factory and Industrial Building Construction industry in Australia is responsible for the construction of a wide variety of buildings, ranging in construction complexity from simple tilt-wall warehouse space to sophisticated purpose-built laboratories that deliver high-security and humidity-controlled environments. Industry revenue is projected to increase by 3.6% over 2013-14 to $5.8 billion. According to IBISWorld industry analyst Anthony Kelly, “Investors are currently attracted to the industrial property market because of the relatively high yields on investment and signs of stronger general economic growth.” The industry is rebuilding from the collapse in demand conditions that accompanied the global financial crisis in the late 2000s. Over the five years through 2013-14, industry revenue is projected to contract at an annualised 5.2%, corresponding with the decline in the value of work done on industrial building projects by an annualised 5.0% and the slump in factory construction by an annualised 13.8%.
“The industry is expected to continue to strengthen over the short term, reflecting buoyant investment conditions in the industrial property market and the improved demand in the general economy,” says Kelly. Revenue is projected to increase by an annualised 1.3% over the five years through 2018-19 to reach $6.2 billion, driven by subdued cyclical growth in the value of work done on industrial buildings, at an annualised 1.6%, but continuing to lag behind the pace of GDP growth.
Direct employment is relatively low at about 9,100 people in 1,850 establishments in 2013-14 as the industry relies heavily on a subcontracted labour force. The industry's workforce currently totals about 31,000 people, including direct employees, apprentices, working proprietors, consultant engineers, consultant architects, surveyors and subcontracted labour. The Factory and Industrial Building Construction industry is characterised by its many small- and medium-scale contracting firms, and has a low concentration of ownership. The four largest firms are Leighton Holdings Limited, Hansen Yuncken Pty Ltd, Watpac Limited and Laing O'Rourke Australia Pty Ltd. Despite this low concentration of ownership, only a handful of companies have the technical capacity to undertake large-scale complex projects, such as paper mills and metal smelters.
For more information, visit IBISWorld’s Factory and Industrial Building Construction in Australia industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry construct manufacturing structures, with firms specifically engaging in new work, additions and alterations.
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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