Industry Analysis & Industry Trends
The Construction Machinery and Operator Hire 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. Over the five years through 2015-16, industry revenue is projected to increase by an annualised 3.7% to reach $3.1 billion. This performance has been supported by unprecedented demand from the mining and infrastructure markets, the swing towards the construction of high-rise apartments instead of traditional housing, and the solid recovery in commercial building construction.
Despite this solid performance, industry revenue is expected to fall by 3.0%... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has relatively high barriers to entry, due principally to the high cost of purchasing and maintaining the capital equipment and the industry's tight regulatory environment.
Crane operators are required to hold nationally recognised licensing for each category of equipment. The person appointed to design the project and supervise the lift project requires accreditation obtained through certificated courses and appropriate health and safety training. Technological change heightens the technical complexity of operating the construction equipment and firms must upgrade operators' certification to meet these changes.
New entrants may be disadvantaged by the close relationships the existing firms have with major clients (e.g. building contractors and oil companies)... purchase to read more