The industry will continue to be influenced by divergent trends in the key construction markets and weaker investment into infrastructure projects.
Melbourne, Australia (PRWEB) August 17, 2014
Players in the Construction Machinery and Operator Hire industry in Australia generate the bulk of their revenue from work in commercial building and apartment construction. These projects require cranes, pile-driving and pumping equipment to erect multi-storey buildings or install heavy structural components (e.g. steel girders, precast concrete panels and beams and concrete pours). However, since the late 2000s, “the industry's largest players have generally focused on servicing the mining and infrastructure markets,” according to IBISWorld industry analyst Anthony Kelly. This has included the erection of transmission equipment, pipelines and wind turbines.
The industry is projected to generate revenue totalling $2.9 billion in 2014-15, representing a decline by 1.7% on the previous year due to the scaling back of demand from the non-building infrastructure markets and particularly the mining sector. However, demand for cranes used in high-rise office complex and apartment construction has increased, which has helped cushion overall demand falls in the short term. Since the late 2000s, the performance of the Construction Machinery and Operator Hire industry has reflected Australia's two-speed economy. Revenue is projected to increase by an annualised 2.1% over the five years through 2014-15, supported by unprecedented demand from the infrastructure markets and strong growth in apartment and townhouse construction. By contrast, contracting firms have encountered weak demand from the commercial and industrial building markets, particularly due to a slump in office construction. “This is the most important market for high-rise cranes,” says Kelly.
The industry has a low level of market share concentration. In 2014-15, the industry directly employs about 14,600 people in 2,050 enterprises, although the total workforce also includes working proprietors, subcontractors (e.g. crane operators, riggers and dogmen) and professional consultants (e.g. engineers). Major players include Boom Logistics, Tutt Bryant Group Limited and Freo Group Pty Ltd. The industry will continue to be influenced by divergent trends in the key construction markets with the further scaling back of demand for cranes and hoists on the completion of the giant LNG projects over the next two years and generally weaker investment into infrastructure projects (other than roads).
For more information, visit IBISWorld’s Construction Machinery and Operator Hire industry in Australia report page.
Firms in this industry hire out construction machinery, plant and equipment (mainly cranes) with operators for use on a wide range of construction projects and industrial applications.
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IBISWorld industry Report Key Topics
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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