As the mining boom slows down, demand from mining firms is expected to contract.
Melbourne, Australia (PRWEB) January 14, 2014
Quantity surveying is a niche area within engineering consultancy. Companies operating in the industry provide procurement advice, cost planning and asset capitalisation (depreciation scheduling). The Quantity Surveyors industry has performed well over the past five years with industry revenue forecast to grow at annualised 5.8% over the five years through 2013-14. Industry performance is attributed to strong demand from downstream markets and the growing importance of industry services following the global financial crisis. Demand for industry services is reliant on activity in the mining and construction sectors. Actual capital expenditure on mining is forecast to grow at annualised 26.9% over the five years through 2013-14, while the total value of engineering construction is forecast to increase at an annualised 9.0% over the same period. Demand for resources and energy across emerging Asian economies has supported investment into new mining projects over the past five years. Other factors contributing to revenue growth over the period were Federal Government expenditure on infrastructure and higher multi-unit apartment construction. Industry revenue is forecast to increase by 4.8% in 2013-14 to reach $1.8 billion.
IBISWorld industry analyst Andrei Ivanov states “over the next five years, the mining investment boom is expected to come to an end, which represents a major threat to the industry.” Miners are expected to focus more on production and increasing efficiency rather than investing into new capacity. As a result, infrastructure markets are expected to play an increasingly important role for the industry. Growing demand for multi-unit apartments will also help to maintain revenue growth over the next five years. According to Ivanov, “with the Federal Government actively trying to reduce deficit levels, and ongoing population growth demanding further investment in infrastructure, public-private partnerships (PPP) are expected to become a more common way of undertaking projects.” This represents an opportunity for the industry, since the complexity of such arrangements requires significantly more planning. Consequently, depreciation scheduling services are expected to increase as a portion of industry revenue.
The Quantity Surveyors industry has a low level of market share concentration. The industry is mainly comprised of large-scale engineering consulting firms that provide quantity surveying as part of full-service project management, along with smaller niche operators working in particular areas of quantity surveying such as tax depreciation scheduling. There is greater concentration at the higher end of the market, where large-scale construction projects are serviced by global engineering consulting companies or specialist quantity surveying companies. The industry’s major players include Bechtel Australia, WorleyParsons, Rider Levett Bucknall, Sinclair Knight Merz and GHD Group. For more information, visit IBISWorld’s Quantity Surveyors report in Australia industry page.
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IBISWorld Industry Report Key Topics
Firms in this industry provide cost planning and commercial management of construction projects. This includes risk management and procurement advice.
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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