Melbourne, Australia (PRWEB) July 04, 2013
The Infrastructure Maintenance Services industry deals with guaranteeing that infrastructure remains useful and does not include alterations and upgrades. According to IBISWorld industry analyst Craig Shulman, “as most infrastructure is built with the intention of lasting a long time, the industry has a rare advantage of near constant growth.” The number of infrastructure projects in Australia continues to increase in line with the development of the Australian economy and society. When a piece of infrastructure is abandoned or demolished, it is replaced with superior technology. Hence, the level of maintenance required is sustained in some way.
Over the past five years, industry firms have been able to take advantage of infrastructure construction occurring in the mining and energy sectors. “The mining sector has been building new infrastructure over the period in response to high resource demand from developing countries, while the energy sector has invested in renewable energy-related infrastructure partly funded by government incentives,” says Shulman. Increased infrastructure maintenance and construction occurred in 2008-09, as the Federal Government spearheaded a large one-off injection in an effort to stave off the global financial crisis. Over the five years through 2013-14, revenue is estimated to increase at a compound annual 7.6%. In 2013-14, revenue is expected to increase 7.6% to reach $13.0 billion.
Over the next five years, the Infrastructure Maintenance Services industry will be affected by lower infrastructure construction within the mining and energy sectors and greater commercial focus by both private and public entities. Weaker resource demand has led mining sector companies to cut costs, which includes reassessing infrastructure maintenance expenditure. Infrastructure construction within the energy sector is also set to slow, as construction over the past five years extended above and beyond requirements.
As state and federal governments remain concerned with their finances, they will seek to off load high-cost infrastructure assets to the private sector. This is expected to lead to maintenance expenditure revision when ownership changes, placing greater pressure on industry firms to be competitive with offers.
The Infrastructure Maintenance Services industry exhibits a low level of market share concentration. The industry is characterised by a large number of highly fragmented players. The industry’s two largest players are Leighton Holdings Limited and Downer EDI Limited.
For more information, visit IBISWorld’s Infrastructure Maintenance Services report in Australia industry page.
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IBISWorld Industry Report Key Topics
Operators in this industry conduct preventive and reactive maintenance and alterations to existing infrastructure. Additional activities include major plant shutdown maintenance and sustaining capital works.
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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