Industry Analysis & Industry Trends
The Prefabricated Wooden Building Manufacturing industry is one of the smaller manufacturing industries in Australia. Its products have been steadily losing ground to substitutes such as prefabricated metal, PVC and cement-fibre buildings. Metal prefabricated buildings have captured the largest share of the expanding mining, resources and infrastructure markets. As a result, prefabricated wooden building manufacturers have generally been unable to benefit from these massive boosts in demand. Industry operators tend to hold leading position in the household and backyard building market, manufacturing products such as granny flats, garden sheds, cubbyhouses, kit homes, kennels and pergolas.
The industry's performance has fluctuated dramatically over the past five years... purchase to read more
Industry Report - Industry Investment Chapter
A medium level of capital intensity characterises the industry. In 2014-15, for every dollar spent as wages, an estimated $0.14 is invested in capital. Relative labour intensity often varies depending on firms' scale of operations, and their main products and markets. Prefabricated wooden building manufacturers are required to invest in a range of metalworking and woodworking machinery, including mitre cutting equipment, power drills, welding equipment, lathes, surface grinders, sanders and routers.
Capital investment is also required in large-scale manufacturing facilities, but many companies rent these properties in an effort to minimise their initial capital outlays. Labour costs are also a moderate expense for industry operators... purchase to read more