IBISWorld Market Research
Commercial building construction activity will boost growth for firms, as larger businesses tend to employ major industry players.
Melbourne, Australia (PRWEB) September 20, 2014
The growth of the Fire and Security Alarm Installation Services industry in Australia has been limited over the past five years, as it has contended with subdued commercial construction activity due to widespread uncertainty following the global economic downturn. According to IBISWorld industry analyst Anthony Kelly, “the industry has also become increasingly fragmented, as the downturn in demand resulted in worker redundancies and former employees started their own businesses or began to operate as subcontractors.” Meanwhile, major players such as Chubb Security Holdings Australia Limited and Tyco International Pty Limited have consolidated their position in the industry through their specialised services across multiple industries. Industry revenue is expected to display marginal growth of an annualised 0.3% over the five years through 2014-15, to total $3.4 billion. This includes a moderate cyclical upswing by 2.2% during the current year, supported by the improved demand conditions in the housing and commercial building markets.
The number of industry enterprises has contracted over the past five years and currently totals an estimated 2,950 businesses. There was an exodus of 140 companies over the two years through 2012-13, associated with the scaling back of work on institutional building projects following the completion of the Building the Education Revolution (BER) government stimulus package. “More businesses are expected to enter the market over the next five years as construction activity improves, particularly in apartment construction,” says Kelly. This will mean that new entrants to the industry will be concentrated in the inner city, as individuals look to move closer to work and other facilities. The industry displays a low level of market share concentration. Major players include Tyco International Pty Limited and Chubb Security Holdings Australia Limited.
The outlook for the next five years is stronger for the Fire and Security Alarm Installation Services industry, as construction activity slowly recovers and growth becomes more stable. Commercial building construction activity will boost growth for firms, as larger businesses tend to use major industry players for their needs. Profit margins are expected to improve, as demand increases and industry operators source products from low-cost manufacturers outside of Australia, particularly while the Australian dollar remains high.
For more information, visit IBISWorld’s Fire and Security Alarm Installation Services industry in Australia report page.
The Fire and Security Alarm Installation Services industry comprises firms that install and repair security systems and fire protection, detection and control systems.
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