Industry Analysis & Industry Trends
The Painting and Decorating Services industry has enjoyed moderate growth over the past five years. Industry revenue has grown at an annualised rate of 0.8% over the five years through 2012-13, remaining resilient despite faltering construction demand. Economic uncertainty, driven by the global financial crisis and credit constraints, has impacted the industry and specifically private capital expenditure. Due to painting and decorating services being heavily reliant on the residential market, decreases in private capital expenditure have adversely affected industry performance. Economic stimulus packages bolstered public capital expenditure in the past five years however, helping offset the effects of poor private sector expenditure... purchase to read more
Industry Report - Industry Investment Chapter
Painting and decorating services is characterised by very low capital intensity, as the principal value added in this industry is labour input into construction and maintenance projects. Approximately $51.00 of labour per $1.00 of capital is necessary for the industry in 2012-13, as only simple tools are necessary and investment requirement is low. The industry is made up of many small-scale contractors, often hiring no additional staff. Capital investment is usually limited to vehicle costs and simple tools such as ladders, drop sheets, brushes and rollers. Large items are hired from leasing companies on a case-by-case basis.
Labour costs continue to be the principal cost of this industry as wages and contractor payments equate to approximately 50% of industry revenue... purchase to read more