Commercial and Industrial Building Construction in Australia Industry Market Research Report Now Updated by IBISWorld

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A resurgence in commercial building construction is set to drive a recovery in the industry after a tough five years. For this reason, industry research firm IBISWorld has updated its report on the Commercial and Industrial Building Construction industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The industry's performance corresponds with the slump of private investment into building in the aftermath of the global financial crisis.

From offices and factories, to hotels, airport terminals and retail complexes, the Commercial and Industrial Building Construction industry constructs most of the buildings where Australians work, shop and play. The industry's revenue is forecast to total $29.6 billion in 2013-14, up 0.7% on the previous year but remaining well below the record peak of 2007-08. According to IBISWorld industry analyst Anthony Kelly, “confidence in the commercial property market has struggled to recover due to the fragile global economy and sluggish local consumption and investment trends.”

Over the five years through 2013-14, industry revenue is projected to decline at an annualised 4.3%. Profit margins have also been squeezed. “The industry's performance corresponds with the slump of private investment into commercial and industrial buildings in the aftermath of the global financial crisis and weak investor confidence,” says Kelly. However, some contractors have derived stimulus from growth in the aligned institutional building market (notably primary schools refurbishment) and the reconstruction of flood-damaged buildings in Queensland.

The industry's prospects are forecast to strengthen over the next five years, with stronger conditions on local property markets due to rising property yields and occupancy rates. Industry revenue is forecast to be primarily driven by a resurgence in the value of commercial building construction (notably hotels and office developments) and, to a lesser extent, increased industrial building activity. Direct employment is relatively low because the industry relies heavily on a subcontracted labour force. Industry employment is estimated at 40,000 people in 2013-14, while the total workforce numbers about 155,000 people when including direct employees, apprentices, working proprietors, consultant engineers, consultant architects, surveyors and subcontracted labour. The Commercial and Industrial Building Construction industry has a low concentration of ownership, with the four largest firms accounting for less than 20.0% of annual revenue. Relatively few companies are capable of constructing large-scale or complex landmark projects.

For more information, visit IBISWorld’s Commercial and Industrial Building Construction report in Australia industry page.

Follow IBISWorld on Twitter:!/ibisworldau

IBISWorld industry Report Key Topics

Operators in this industry construct commercial and industrial non-residential buildings. They also perform alterations, renovations and general repairs of commercial and industrial buildings, and organise and manage construction.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
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 or call (03) 9655 3886.

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Gavin Smith
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