Industry Analysis & Industry Trends
The Architectural Services industry has endured a tough five years due to a prolonged downturn in the construction market. Over the period, the winding back of educational building investment and weak housing construction has led to subdued demand for industry services. Revenue is estimated to rise by an annualised 0.4% over the five years through 2013-14, corresponding with a slump in the value of total building construction.
The key building markets for architectural services have displayed divergent trends over the past five years. In the non-residential building market, the value of institutional building has benefited from the injection of federal funding for school refurbishment under the Building the Education Revolution (BER) program... purchase to read more
Industry Report - Industry Investment Chapter
The industry is a knowledge-based industry with value added from the use of professional skills and creativity to provide clients with satisfactory design and planning solutions. The industry therefore has a labour intensive structure. Although the industry uses computer-aided design (CAD) and advanced document preparation peripherals, the value of labour input remains integral to industry operations.
The ratio of labour costs to depreciation charges can be used to measure an industry's capital intensity as it indicates the amount of industry revenue absorbed by direct labour inputs (i.e. wages and salaries), and capital inputs. Wages and salaries account for 31.4% of industry revenue. Depreciation charges absorb 1.7% of annual industry revenue... purchase to read more