Improved investment in commercial and residential building is set to drive industry growth.
Melbourne, Australia (PRWEB) March 04, 2014
The Architectural Services industry has endured a tough five years due to a prolonged downturn in the construction market. Over the period, the winding back of educational building investment and weak housing construction has led to subdued demand for industry services. 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 program. In contrast, the value of commercial and industrial building is expected to fall because of slower economic growth and the global financial crisis. 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 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. IBISWorld industry analyst Sebastian Chia states “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.” This is difficult due to the nature of the industry, which has a fragmented structure with few large-scale national players and many small-scale firms that operate in narrow regional markets. These trends are forecast to grow over the next five years. According to Chia, “despite growing competition, demand conditions are forecast to strengthen over the next five years due to improved investment in the commercial and residential building markets.”
The Architectural Services industry has a low concentration of ownership. 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. 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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Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.