Industry Analysis & Industry Trends
The Debt Collection industry typically thrives when the economy is stumbling, 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.
While some of the Australian economy has benefited from the booming resources sector for much of the past five years, much of the economy struggled in challenging conditions. The subdued economic growth and rising private debt has fuelled strong growth for debt collection agencies. Industry revenue is currently estimated at $1.2... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Debt Collection industry is in the growth stage of its economic life cycle. The industry is characterised by rapid growth, increasing technological change due to the way debt collectors assess and collect, wholehearted market acceptance and some new players entering the market despite consolidation.
Industry value added (IVA), used to measure an industry's contribution to the overall economy, is projected to increase by an annualised 7.4% over the 10 years through 2018-19, exceeding the projected growth in the overall economy (2.6% annualised) and reflecting the outsourcing of debt recovery by large and small businesses. Wages are decreasing relative to revenue as companies increasingly find ways to automate production. Despite this, overall wages continue to rise... purchase to read more