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Road Maintenance in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

May 25, 2014, 16:00 ET

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IBISWorld Market Research
IBISWorld Market Research

The industry is expected to benefit in the next five years as maintenance needs grow to match the expansion of the network.

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Melbourne, Australia (PRWEB) May 26, 2014 -- The Road Maintenance industry in Australia prolongs the life of road assets through light and heavy maintenance work, though it stops short of road widening or other network expansion services. Over the five years through 2013-14, the industry is forecast to have declined at a compound annual rate of 2.0% due to the allocation of funds to roads by government. According to IBISWorld industry analyst Lauren Magner, “the industry has grown over the past three years, following a large drop in expenditure in 2010-11.” In 2013-14 the industry is forecast to increase by 1.4% to $13.6 billion.

Flows of funding to the industry come from all levels of government, although state and territory governments remain the most influential in determining what work is done where. Traditionally, state and territory governments (through road authorities) planned, constructed and maintained road networks, allocating their own and federal funding. Over the past decade, the role of the private sector within the industry has grown, as has the role of the Federal Government in dictating the direction of funding. This was demonstrated in the past five years, when the Federal Government directed funds towards road construction as part of the stimulus package that followed the global financial crisis in 2008-09. “The privileging of spending on new road construction instead of maintenance was also due to the need to rebuild roads in states affected by natural disasters in the past five years, most notably Queensland,” says Magner. The industry exhibits a low level of market share concentration, with Roads and Maritime Services NSW the only major player.

The industry is forecast to perform more strongly over the next five years. The emphasis on construction of new roads and major upgrades over the past decade has increased the size of the asset base that the industry maintains. The Road Maintenance industry is expected to benefit in the next five years as maintenance needs grow to match the expansion of the network. Alongside growth in demand, the trend of outsourcing industry services is expected to continue and intensify. This is expected to reduce barriers to entry and result in consolidation as contracts for industry services increase in size.

For more information, visit IBISWorld’s Road Maintenance report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau.

IBISWorld industry Report Key Topics

Companies in this industry are engaged in the maintenance and repair of roads. The construction of new infrastructure is excluded from the industry.

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 http://www.ibisworld.com.au or call (03) 9655 3886.

Gavin Smith, IBISWorld, http://www.ibisworld.com.au, +61 396553833, [email protected]

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