Increasing public sector funding has helped drive industry growth.
Melbourne, Australia (PRWEB) October 26, 2013
The Road and Bridge Construction industry has performed strongly since the mid-2000s, driven principally by federal and state road funding and private sector investment into public toll roads. IBISWorld industry analyst Anthony Kelly states “despite slowing over the past five years, the industry is operating at near record levels of activity.” This has paved the way for extensive multiplier effects throughout the local and general economies, and improved efficiency and safety for road users. Industry revenue is projected to grow by an annualised 1.1% over the five years through 2013-14, to total $15.2 billion. Revenue is forecast to grow by a stronger 3.1% in 2013-14 due to an upswing in road construction on new housing subdivisions and ongoing major roadworks. The total value of work done on road and bridge construction projects is forecast to increase by an annualised 0.9% over the five years through 2013-14, to reach $20.1 billion. According to Kelly, “public sector funding is expected to grow by an annualised 3.3%, outweighing the winding back of private road and bridge funding.”
The industry’s largest players include the state road authorities of New South Wales (Roads and Maritime Services) and Victoria (Roads Corporation or VicRoads) and the two largest civil contractors, Leighton Holdings and Lend Lease Corporation. Other major companies include Downer EDI, Fulton Hogan Construction and Boral. Firms in other specialised trade industries also undertake road construction activities such as earthmoving, asphalting, concreting, landscaping, steel erection and line painting.
The Road and Bridge Construction industry has a medium level of market share concentration. Considering the large number of participants, industry activity is quite concentrated with work on major road projects dominated by relatively few large-scale contractors. There has been significant rationalisation of ownership at the top end of this industry during the past decade, with Leighton Holdings and its subsidiaries acquiring majority or total ownership of two of the largest players in the Australian infrastructure market, John Holland (early 2000) and Transfield Construction (early 2003). In late 2010, the locally based construction giant Lend Lease Corporation acquired the operations of Valemus Australia (which include Abigroup and Baulderstone), further concentrating industry ownership. For more information, visit IBISWorld’s Road and Bridge Construction report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry construct roads, bridges, aerodrome runways and parking lots. They also carry out repairs and maintenance. The quarrying of earth, soil or filling and other construction materials is carried out in conjunction with road or bridge construction.
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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