Industry Analysis & Industry Trends
Declining government support for community associations and related groups has resulted in the industry contracting over the past five years. While some sectors of the industry have recorded declining income, the variety of organisations and groups that operate in the industry has helped limit these falls. A declining rate of government funding has resulted in many community organisations reducing service levels and limiting expansion. The unstable economic climate in the aftermath of the financial crisis has also made fundraising more difficult. This is a key source of revenue for many organisations in the industry. Overall, industry revenue is estimated to decrease at an annualised 1.4% over the five years through 2014-15, to $8.4 billion. This includes a forecast fall of 1.7%... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a low capital intensity level. Capital requirements such as the buildings and equipment required for association operation, account for a much lower percentage of overall revenue that labour needs. Other capital is attributed to the purchase of office equipment and, among larger organisations, the purchase and upkeep of vehicles, call centres, sports and social facilities, and permanent camps.
To calculate the capital intensity level, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital, with wages used as a proxy for labour. In 2014-15, depreciation is estimated to account for 2.1% of industry revenue, while wages will make up for 36.8%... purchase to read more