Industry Analysis & Industry Trends
The performance of the Road and Bridge Construction industry has fluctuated over the past five years, resulting from the start-up and completion of large-scale motorway, bridge and tunnel developments. The industry has been supported by increased investment by federal and state governments, through to a record peak in industry revenue in 2012-13. However, the decline in private sector investment in public toll roads has adversely affected the industry.
Industry revenue is expected to contract by an annualised 0.3% over the five years through 2015-16, to total $17.7 billion. This decline is partly due to the sharp reduction of investment into new construction projects during 2013-14 and 2014-15... purchase to read more
Industry Report - Industry Investment Chapter
The Road and Bridge Construction industry has substantial capital inputs compared with most other construction industries. Road and bridge contractors require large amounts of low-skilled labour, but also rely heavily on large-scale capital equipment. For every dollar spent on capital equipment, the industry allocates an estimated $2.41 to wage costs. This represents a high level of capital intensity.
In addition to direct wage costs, which absorb approximately 14.2% of industry revenue in 2015-16, the industry heavily relies on subcontracted services. These subcontracted services include specialist trade services and general labourers. Combined, subcontractor payments and professional and technical services absorb an estimated 27.1% of industry revenue... purchase to read more