Industry Analysis & Industry Trends
The Debt Collection industry typically thrives when the economy is weak, as this can lead to households defaulting on loans and trigger a rise in business bankruptcies. Strong economic conditions, however, can have the opposite effect on the industry. This is due to efforts by households and businesses to pay down debt and boost savings, and the tightening of lending practices, which result in better loans with less likelihood of default. Industry revenue is projected to display strong growth of 4.7% during 2015-16, due to higher unemployment levels and increased household debt as a proportion of assets.
While some parts of the Australian economy benefited from the mining boom over the past five years, much of the economy struggled due to challenging conditions... purchase to read more
Industry Report - Industry Investment Chapter
The Debt Collection industry has a low capital intensity level. The industry is highly labour-intensive due to the knowledge and skills required of staff to achieve success. For debt collection companies, strong and amicable relationships with stakeholders are highly valued, which increases the reliance of industry firms on debt collection staff. Although the industry is increasingly relying on technology and new communications methods to make collections, these are generally not capital intensive. Furthermore, these 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... purchase to read more