The industry faces growing competition from vertically integrated construction and engineering firms.
Melbourne, Australia (PRWEB) September 27, 2013
The Architectural Services industry has endured a tough five years, due to a prolonged downturn in the construction market. In recent years, demand has been subdued due to the winding back of educational building investment and weaker housing construction. Revenue is estimated to rise by an annualised 0.4% over the five years through 2013-14, corresponding with a slump in the value of total building construction.
The key building markets for architectural services have displayed divergent trends over the past five years. In the non-residential building market, the value of institutional building has benefited from the injection of federal funding for school refurbishment under the Building the Education Revolution (BER) program. In contrast, the value of commercial and industrial building is expected to fall because of slower economic growth and the global financial crisis. IBISWorld industry analyst Sebastian Chia states “architects have faced subdued conditions in the new housing market, with the value of construction remaining flat over the past five years.” Declining investment trends in the traditional single-unit housing market has offset growth in the townhouse and apartment design market. In 2013-14, the industry is forecast to generate revenue of $6.4 billion, rising 2.1% on the previous year. Rising housing investment is expected, in both the single and multi-unit sectors, due to record low interest rates and an expected recovery in economic growth. The industry has been facing growing competition from vertically integrated firms in the building construction and engineering consultancy industries over the past five years. According to Chia, “clients are growing towards more integrated service offerings, and architecture firms have to improve links with construction firms or even offer their own range of services to compete.” Despite growing competition, demand conditions are forecast to strengthen over the next five years due to improved investment in the commercial and housing building markets.
The Architectural Services industry has a low level of market share concentration. It has a fragmented structure with few large-scale national players, a larger number of state or regionally based firms (influenced by the requirement for individual state registration procedures), and many small-scale firms and sole practitioners operating in narrow regional markets. The industry’s major players are GHD Group, AECOM Australia and Hassell. For more information, visit IBISWorld’s Architectural Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes establishments that mainly provide planning and design services of buildings and structures, or planning and designing land development. Industry activities may include design, construction procedures, zoning regulations, location and land use, building codes and building materials.
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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