Industry Analysis & Industry Trends
The industry generates the bulk of its revenue from work on high-rise commercial building and apartment projects. These projects require cranes, pile-driving and pumping equipment to erect multistorey buildings or install heavy structural components. However, since the late 2000s, the largest players have focused much of their attention on servicing the mining and infrastructure markets, including the erection of transmission equipment, pipelines and wind turbines.
Over the five years through 2015-16, revenue is projected to increase by an annualised 3.5% to reach $3.0 billion, supported by unprecedented demand from infrastructure markets and strong growth in apartment construction... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a moderate level of capital intensity due to the heavy investment into large-scale construction equipment such as mobile cranes (e.g. truck mounted), fixed cranes (e.g. tower cranes), pneumatic concrete conveyors, pumps and construction site hoists. While capital equipment requirements are integral, the industry's value added is derived from the supply of skilled labour services with the hire of specialist construction equipment. Therefore, labour remains a vital input to the industry.
Total industry labour costs account for approximately 43.9% of revenue in 2015-16, and depreciation charges accounts for about 10.0% of revenue. This indicates that the industry spends $4.39 on labour for every dollar spent on capital equipment input to production... purchase to read more