Industry Analysis & Industry Trends
The Architectural Services industry has endured a tough five years due to fluctuations in downstream building construction markets and rising competition. Over the past five years, the winding back of the Federal Government's BER program and low growth in commercial construction has led to subdued demand for industry services. However, the flow-on effects of an upswing in housing construction activity in the three years through 2014-15 (partly caused by record low interest rates) are anticipated to cause revenue growth of 1.6% in 2015-16. Revenue is estimated to rise by an annualised 0.6% over the five years through 2015-16, climbing to $6.5 billion... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has a low ownership concentration, with the four largest firms estimated to contribute less than 5% of annual industry revenue. The industry has a fragmented structure with few large-scale national players. Only about 1.6% of businesses employ more than 20 staff. Some consolidation has occurred over the past five years, with large, multi-service companies such as GHD and prime building contractors such as Lend Lease acquiring small architecture firms to expand their range of services.
Several factors have caused the industry's fragmentation. For example, any person offering services to the public as an architect must be registered with each state and territory's architect's board, which discourages sole practitioners from working in multiple states... purchase to read more