The industry grows despite subdued private building investment
Melbourne, Australia (PRWEB) April 26, 2013
The Glazing Services industry in Australia has grown despite uncertain economic conditions and faltering construction activity. Industry revenue is expected to grow at a compound annual rate of 1.6% over the five years through 2012-13 despite subdued private investment affecting residential and commercial construction. This subdued investment has affected growth due to the industry's reliance on private construction markets. According to IBISWorld industry analyst Jeremy Edwards, “increased public capital expenditure and a stable automotive glazing market have mitigated the effect of the global downturn”. Economic stimulus packages assisted the industry directly, as glazing service providers benefited from infrastructure improvements.
Increases in revenue have resulted in similar increases in enterprises and establishments as businesses enter the market looking to capture its relatively high profit margin. The industry has relatively low barriers to entry due to the ability for sole proprietors and partners to hire subcontractors and equipment when needed. “Low market concentration results in operators being able to service localised markets without overarching competition”, says Edwards. There are only three major players in the industry: Belron Australia Pty Limited, G James Australia Pty Ltd and Permasteelisa Pty Limited.
The Glazing Services industry is expected to benefit from increases in private expenditure in the next five years as consumer and business sentiment improve. Furthermore, increases in real household disposable income will assist private residential construction, alterations and additions. Public expenditure is expected to decrease to low, stable levels as government stimulus packages end as the economy recovers. Increase construction growth and demand for energy-efficient glass will benefit the industry. Automotive services will provide the industry with a stable source of revenue as repairs and replacements will always be required.
For more information, visit IBISWorld’s Glazing Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry undertake glazing, including glass installation and repair work.
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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