Industry Analysis & Industry Trends
The performance of the Road and Bridge Construction industry has fluctuated widely since the mid-2000s reflecting the impact of the start-up and completion of large-scale motorway, bridge and tunnel developments. The industry has been supported by solid growth in investment by the federal and state governments but adversely influenced by the decline in private sector investment into public toll roads. Despite slowing over the past five years, the industry is operating at near record levels of activity.
Industry revenue is projected to grow by an annualised 2.0% over the five years through 2014-15 to total $13.4 billion. This includes a forecast upswing of 6.8% in 2014-15, driven by construction activity on new housing subdivisions and ongoing work on major road developments... purchase to read more
Industry Report - Industry Investment Chapter
The industry has substantial capital inputs compared with most construction industries. Road and bridge contractors require large amounts of relatively low-skilled labour, but also rely heavily on large-scale capital equipment. The industry has a high level of capital intensity. For every dollar spent on capital equipment, the industry allocates $2.44 to wage costs.
In addition to direct wage costs, which currently absorb approximately 14.4% of industry revenue, the industry heavily relies on subcontracted services, including specialist trade services and general labourers. Combined, subcontractor payments and professional and technical services absorb about 27.1% of industry revenue... purchase to read more