Product safety regulations in Australia are a source of demand for industry services
Melbourne, Australia (PRWEB) April 09, 2013
The Materials Testing Services industry involves the testing of a wide variety of items or substances that are used in the construction of machinery, equipment, property, infrastructure and textiles. As Australia has a highly developed regulatory system, these services are seen as a near requirement for suppliers of goods, property and infrastructure. If ignored, suppliers risk not only releasing a subpar product, but also possible product recalls and possible legal action. Consequently, the industry has always been fuelled by regulatory-induced demand. According to IBISWorld industry analyst Craig Shulman, “as these regulations grow in sophistication, so too has this default level of demand”.
Demand beyond simple safety concerns relates directly to demand for products that require a regular level of testing. Construction materials tests are the largest segment in the industry, and consequently, demand for construction materials testing shapes the industry to a large degree. The floods that affected Queensland and Victoria in 2010-11 and 2011-12 have also assisted the industry indirectly as structural damage in these areas continue to be dealt with. Consequently, IBISWorld expects revenue to have increased at an annualised rate of 5.3% over the five years to 2012-13. Shulman adds, “revenue is expected to grow 3.6% in 2012-13 to reach $574.5 million”.
The Materials Testing Services industry's market share concentration is medium, and increasing given the increasing rate of consolidation that has occurred within the industry over the past five years. Major players in the industry include ALS Limited and SGS Australia Holdings Pty Limited.
Over the next five years, the same factors that affected the industry over the past five years are expected to continue to remain significant. Construction division demand is expected to swing up as the effects of the global financial crisis continue to lessen, while infrastructure construction is expected to continue to decline as the Mining Resource Rent Tax affects the Mining division. Product safety standards are also expected to fall away as a guaranteed form of demand, as cross-border mutual recognition agreements allow suppliers to conduct less product safety checks worldwide.
For more information, visit IBISWorld’s Materials Testing Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry test materials for a wide variety of applications and downstream industries. Materials testing includes the analysis of metals, composites, ceramics, polymers, textiles, concrete and geomaterials.
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.