Sales of concrete pipes and culverts will fall with the winding back of investment into several key infrastructure markets.
Melbourne, Australia (PRWEB) January 21, 2015
Operators in the Concrete Product Manufacturing industry in Australia produce a wide range of products that are essential inputs into most construction markets. Industry products include pipes and box culverts, bricks and blocks, cement-based building boards, floor, wall and roofing tiles, precast panels and posts. The industry is subject to some competition from imports, with imports estimated to account for 7.2% of domestic demand in 2014-15, with this share is trending upwards over the long term. Industry export earnings are negligible. The industry is projected to generate revenue of $2.58 billion in 2014-15, up 2.8% on the previous year, but representing a decline by an annualised 1.5% over the five years through 2014-15. According to IBISWorld industry analyst Anthony Kelly, “the industry's performance has been influenced by divergent trends in the downstream construction markets”. Manufacturers have benefited from strong demand for concrete products from the road construction, mining, railway, pipeline and water supply infrastructure markets. However, the industry's performance has been significantly contained by adverse investment trends in the key building markets, and reductions in the concrete tile and brick content of new housing construction.
The industry currently employs an estimated 7,900 people in 825 enterprises. This represents a sharp decline in employment from the cyclical peak of 9,159 people in 908 businesses in 2009-10. “The industry is dominated by a few large, vertically integrated firms,” says Kelly. The six-largest companies generate just over 75% of annual industry revenue. The industry's major players include Fletcher Building Limited, James Hardie Industries SE, CSR Limited, Brickworks Ltd, Holcim (Australia) Holdings Pty Ltd and Boral Limited. The industry displays a medium level of market share concentration.
Divergent trends will continue to contain the pace of Concrete Product Manufacturing industry expansion through the next five years, with sales of concrete pipes and culverts falling with the winding back of investment into several key infrastructure markets. Meanwhile, improved trends in building markets will underpin stronger demand for concrete panels, building boards and tiles.
For more information, visit IBISWorld’s Concrete Product Manufacturing industry in Australia report page.
Companies in this industry manufacture concrete products, including aerated and composite products. Industry products are used for a wide range of construction and ornamental applications.
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