Government regulations requiring only licensed companies to haul hazardous waste benefits the industry.
Melbourne, Australia (PRWEB) November 25, 2013
The Elevator Installation and Maintenance industry in Australia has struggled to lift its revenue over the past five years. Revenue is heavily dependent on downstream industries that have had mixed performances over the period. According to IBISWorld industry analyst Andrei Ivanov, “Demand from construction of multi-unit apartment buildings has increased over the five years through 2013-14, but this has been offset by poor conditions in the construction of commercial property, such as high-rise office buildings”. Revenue generated from maintenance services has been stagnant. The industry had its worst year in 2009-10, when demand from both commercial and residential construction plummeted. The government tried to boost the economy by spending money on infrastructure and institutional construction. This has somewhat dampened the drop in revenue. Overall, industry revenue is forecast to decline at an annualised 1.5% over the five years through 2013-14 to reach $1.2 billion.
The industry is in the mature stage of its life cycle and has a high market share concentration. The industry is overwhelmingly dominated by its three major players, Schindler lifts Australia Pty Limited, KONE Holdings (Australia) Limited and United Technologies Australia Holdings Limited. These larger players in the industry tend to have the capability to do installation, repairs and maintenance of escalators. The smaller players tend to focus more on the maintenance and refurbishment of older lifts. “More than half of industry revenue is derived from escalator and elevator installation, which is the reason for its strong dependence on downstream construction markets,” says Ivanov. For most of the past five years, commercial and private construction have had opposite effects on operators in the industry. However, during the years when their effects were similar, industry revenue posted large jumps, such as that in 2011-12. In 2013-14, revenue is forecast to grow by only 0.5%.
The outlook for the Elevator Installation and Maintenance industry is strong. Growth is expected to be driven by improving conditions in commercial construction as commercial property yields rise. Demand from multi-unit apartment is expected to decrease slightly relative to the past five years due to a decline in yields and large build-up of stock. However, it should still contribute to revenue growth over the next five years.
For more information, visit IBISWorld’s Elevator Installation and Maintenance in Australia industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry are mainly engaged in the installation and maintenance of elevator and escalator systems in office buildings, shopping centres, stadiums, airports and other commercial buildings and 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.