Industry Analysis & Industry Trends
The Road and Bridge Construction industry has performed strongly since the mid-2000s, driven principally by federal and state road funding and private sector investment into public toll roads. Despite slowing over the past five years, the industry is operating at near record levels of activity. This has paved the way for extensive multiplier effects throughout the local and general economies and improved efficiency and safety for road users.
Industry revenue is projected to grow by an annualised 2.2% over the five years through 2013-14 to total $14.6 billion. This includes an upswing by 6.6% in 2013-14 driven by construction activity on new housing subdivisions and ongoing major roadworks... purchase to read more
Industry Report - Industry Investment Chapter
The industry has substantial capital inputs compared with most construction industries. Road and bridge contractors still require large amounts of relatively low-skilled labour, but also rely heavily on large-scale capital equipment.
An industry's depreciation-to-labour cost ratio is indicative of its relative labour or capital intensity as it indicates the share of industry revenue absorbed by each type of input to construction. The industry has a high level of capital intensity. For every dollar spent on capital equipment, the industry allocates $2.18 to wage costs.
In addition to direct wage costs, the industry has a heavy reliance on subcontracted services, including specialist trade services and general labourers... purchase to read more