The continued development of new products like mobile skips and skip bags has contributed to industry growth
Melbourne, Australia (PRWEB) April 30, 2014
The Skip Bin Rental industry in Australia has expanded at a strong rate in the past five years due to high demand for industry services. According to IBISWorld industry analyst Alen Allday, “steady demand growth has been driven by a large number of downstream industries and sectors, such as construction, building, manufacturing and services.” Companies that have high waste levels and require convenient or short-term waste solutions use skip bins provided by the industry. The continued development of new products and services (such as mobile skips and skip bags) has also contributed to industry growth, particularly in the household segment.
Industry revenue is expected to increase at an annualised 5.7% in the five years through 2013-14, to $220.5 million. This includes estimated growth of 3.4% in 2013-14. “New firms have entered the industry at a steady rate in the past five years due to strong demand and moderate barriers to entry,” says Allday. These entry barriers have eased, with Jim's Skips offering franchising opportunities and a relatively low-cost entry to the industry. These factors are expected to attract further new entrants to the industry in the next five years. Market share concentration is low in the industry. Major players include Veolia Environmental Services (Australia) Pty Ltd, Transpacific Industries Group Ltd and Kartaway Mini Skips.
Increases in tip disposal fees have hindered profit growth in the past five years. As waste transfer stations and refuse sites increase disposal fees, industry firms have been forced to absorb some of these higher expenses rather than pass the full amount onto customers. Future growth across the Skip Bin Rental industry is forecast to be moderate and steady. Demand will continue to be high from the construction and building sectors, with households also using industry services. Despite steady forecast revenue growth, industry profit is projected to continue to decline in future years as disposal and wage costs increase.
For more information, visit IBISWorld’s Skip Bin Rental report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
Companies operating in the industry rent a variety of different-sized skip bins to residential and commercial customers that have high waste volumes. Skip bin rental companies typically deliver skip bins to specific locations and pick them up at specified times, or when the customer has filled the bin.
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.
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.