Industry products have been steadily losing ground to substitutes such as prefabricated metal and PVC.
Melbourne, Australia (PRWEB) January 27, 2014
The Prefabricated Wooden Building Manufacturing industry in Australia is one of the smaller manufacturing industries. Its products have been steadily losing ground over the past decade to substitutes such as prefabricated metal, PVC and cement-fibre buildings. According to IBISWorld industry analyst Anthony Kelly, “Metal prefabricated buildings have captured the lion's share of the burgeoning mining resources and infrastructure markets, while wooden prefabricated buildings hold a leading position in the backyard building market, including products such as granny flats, garden sheds, cubby houses, kennels and pergolas.”
In 2013-14, the industry is expected to generate revenue totalling about $200.0 million. This represents an increase of 2.8% on the previous year, due to the projected strengthening of demand conditions across the total housing construction market. The industry's revenue is projected to average solid cyclical growth of an annualised 1.9% over the five years through 2013-14. “However, this includes dramatic annual fluctuations resulting from the one-off public sector stimulus spending on educational buildings, and the flow through of orders from the resources market,” says Kelly. The demand for kit homes and backyard buildings has been partly supported by the growth in the value of total housing construction of an annualised 1.5% over the five years through 2013-14. However, industry sales have been dampened in recent years by the winding back of the Federal Government's school refurbishment program (Building the Education Revolution) and weaker trends in the tourism and holiday home markets.
The industry comprises mainly small-scale, geographically dispersed manufacturers, and the bulk of the enterprises employ fewer than 20 people (92.2% in 2011-12). Direct employment totals just 570 people in 125 establishments in 2013-14, but the industry also uses subcontracted labour on a seasonal basis and for installation and cartage. The Prefabricated Wooden Building Manufacturing industry has a very low concentration of ownership and production, with no major companies controlling a significant amount of revenue. The industry's performance is expected to strengthen over the coming year on the back of stronger housing investment and household consumption trends. Demand conditions are expected to strengthen in the household and holiday accommodation market over the five years through 2018-19.
For more information, visit IBISWorld’s Prefabricated Wooden Building Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry manufacture structurally complete prefabricated wooden buildings (e.g. carports, gazebos and sheds), kit homes, cubbyhouses and aviaries. Some firms will undertake on-site erection of the prefabricated buildings (for a fee) and the hire of prefabricated buildings.
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.
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