Revenue suffers as new housing demand remains weak
Melbourne, Australia (PRWEB) February 27, 2013
The Architectural Services industry is forecast to generate revenue of $6.3 billion in 2012-13, down by 1.6% on the previous year due to the winding back of educational building investment and weaker housing construction. Revenue is estimated to decline by an annualised 2.0% over the five years through 2012-13, corresponding with the cyclical decline in the value of total building construction (1.3%), and failing to match the pace of GDP growth (2.4% annualised). According to IBISWorld industry analyst Anthony Kelly, “the industry generated export earnings that outweighed import penetration”.
The key building markets for architectural services have displayed divergent trends since the mid-2000s. “Architects have faced subdued conditions in the new housing market with the value of construction remaining flat over the past five years”, says Kelly. The growth in the townhouse and apartment design market was offset by declining investment trends in the traditional single-unit housing market.
The Architectural Services industry has a fragmented structure with few large-scale national players and many small-scale firms that operate in narrow regional markets. The industry has a low concentration of ownership. The leading players in the industry are multi-branch operations and include GHD Group Pty Ltd, Hassell Ltd and AECOM Australia Holdings Pty Ltd.
Demand conditions will strengthen over the next five years due to improved investment in the commercial and housing building markets. For more information, visit IBISWorld’s Architectural Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes establishments that provide planning and design services on residential, institutional, commercial, and industrial buildings and structures. Industry activities may include the preparation of drawings and specifications, administering building contracts, inspecting completed projects, the design of building interiors, and landscape architectural activities.
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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