Industry Analysis & Industry Trends
The Debt Collection industry typically thrives when the economy is weak, as this leads to households defaulting on loans and a rise in business bankruptcies. However, the global financial crisis did not lead to a significant surge in debt collecting services. This reflects efforts by households and businesses to pay down debt and boost savings, and the tightening of lending practices, which resulted in better loans with less likelihood of defaulting. The four largest debt-collecting firms are estimated to account for less than 30.0% of industry revenue in 2014-15, as the industry contains many small-scale businesses... purchase to read more
Industry Report - Industry Investment Chapter
The Debt Collection industry has a low capital intensity level. The industry is mainly labour intensive due to the knowledge and skills required to achieve competitive success. A strong relationship with a firm's stakeholders is highly valued and increases the reliance of an enterprise upon its workforce. Although the industry is increasingly relying on technology to make collections, this is not capital intensive and investment requirements are unlikely to change significantly over the next five years.
To calculate the capital intensity level, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital, while wages are used as a proxy for labour... purchase to read more