Industry Analysis & Industry Trends
The Infrastructure Maintenance Services industry aims to prolong the life of infrastructure assets. As most infrastructure is built to be long lasting, the industry has low volatility and tends to grow steadily. Industry growth is derived from the number of infrastructure projects in Australia, which are generally constructed in line with the country’s economic development.
Over the past five years, industry firms have taken advantage of the unprecedented investment into infrastructure construction, particularly in the mining and energy sectors. The Mining division has been building new infrastructure in response to high demand for resources from developing countries, while the energy sector has invested in renewable energy infrastructure partly funded by government incentives... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a medium level of capital intensity, but much higher than for the Construction division as a whole due to the heavy reliance on specialist machinery and equipment. In 2015-16, the industry is estimated to allocate $4.33 on labour inputs for every dollar spent on capital equipment.
Depreciation expenses represent about 5.4% of annual industry revenue, although the capital equipment requirement varies considerably across the industry due to its broad and fragmented nature. Some segments of the industry use specialised, and often expensive, equipment. Road maintenance firms use rollers and asphalt pavers, and rail maintenance requires specialist rolling stock... purchase to read more