Industry Analysis & Industry Trends
The Plumbing Services industry has shown resilience through variable demand conditions since the late 2000s. The onset of the global financial crisis dampened consumer and business confidence, which drove down investment into housing and commercial buildings and affected demand for plumbing installation services. Demand for residential building construction is projected to climb at an annualised 1.1% over the five years through 2013-14. Meanwhile, the commercial and industrial building market is projected to contract at an annualised 4.3% over the past five years, significantly dampening demand for the installation of plumbing fixtures and fittings on new buildings. Over the period, the industry was given some reprieve from Federal Government stimulus packages, with over $21.0... purchase to read more
Industry Report - Industry Investment Chapter
The industry involves a low level of capital intensity, plumbing services typically requiring a high level of labour intensity as work remains manual. The Plumbing Services industry is estimated to allocate $9.78 towards labour input costs for every $1.00 spent on capital equipment.
The industry also allocates a substantial share of revenue to the payment of subcontracted labour (about 13.5% in 2013-14), which if included as direct labour payments would further inflate the labour costs to depreciation ratio.
The industry has benefited from improvements in technology and systems, however, capital costs tend to remain low, consisting mainly of vehicles and rudimentary tools that are acquired during early years of operating... purchase to read more