Overview

Schooled: Declining investment in educational building has caused revenue to fall

The Institutional Building Construction market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • The end of the Building the Education Revolution program caused revenue to decline
  • A slump in industry activity has contributed to declining industry employment
  • Greater private equity in public buildings is anticipated to contribute to industry growth

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    Industry Analysis & Industry Trends

    The Institutional Building Construction industry constructs buildings for learning, working, healing, socialising, exercising, praying and justice purposes. Private contractors mainly undertake institutional building construction, which is usually funded by the public sector. During the late 2000s, construction surged in the educational building market under the Federal funding of the Building the Education Revolution (BER) program. The cessation of the BER program significantly deflated building in the education market over the past five years, and contributed to downward trends in the overall industry's performance.

    Industry revenue is projected to decline by an annualised 3.0% over the five years through 2016-17, to total $11.6 billion. This includes a sharp decline of 10.5%...

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    Industry Report - Starting a New Business Chapter

    The formal barriers to entry of new competitors mainly consists of the requirement to qualify for state or territory registration and licensing, which is typically based on education certification. However, given that the principal basis for industry competition is on a contractor's proven reputation and demonstrated capabilities, new competitors from outside the non-residential building market can find it difficult to establish a foothold quickly in this market.

    Firms already established in the non-residential building market are likely to have the advantage of an existing pool of skilled subcontractors, arrangements in place with the major material suppliers and established relationships with financial institutions and property developers. How..

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    Additional Insights for the Institutional Building Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Institutional Building Construction Industry are

  • Ability to negotiate successfully with regulator
  • Must comply with government regulations
  • Good project management skills
  • IBISWorld analysts also discuss how external factors such as Private non-residential construction capital expenditure and Capital expenditure by the public sector in the Institutional Building Construction industry impact industry performance..

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    Industry Products

    What is the Institutional Building Construction Industry?

    Companies in the industry construct institutional non-residential buildings, such as hospitals, schools, museums, law courts, prisons and places of religious worship. These institutions are generally operated on a not-for-profit basis. The industry also includes firms that carry out alterations, additions, renovations or general repairs for institutional buildings.

    Industry Products
    Educational buildings
    Health buildings
    Aged-care buildings
    Miscellaneous buildings
    Religious buildings
    Industry Activities
    Hospital and medical centre construction
    Community healthcare centre construction
    Museum and art gallery construction
    Educational building construction
    Nursing home and respite (palliative) care building construction
    Law court building construction
    Prison, detention and correction centre construction
    Defence building construction
    Religious building construction
    Other institutional business premise construction

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Private non-residential construction capital expenditure
  • Capital expenditure by the public sector
  • Public funding for primary and secondary education
  • Demand from health services
  • Government funding for public hospitals
  • Population

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Institutional Building Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Institutional Building Construction Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Education and Training
  • Nursing Homes
  • Administrative and Support Services
  • Health Services
  • Community Services
  • Police and Firefighting Services

  • Key Selling Industries
  • Construction
  • Hardware Wholesaling
  • Professional Services
  • Timber Wholesaling

  • Products & Services
  • Health buildings
  • Educational buildings
  • Miscellaneous buildings
  • Aged-care buildings
  • Religious buildings
  • Chart: Institutional Building Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Publicly funded educational buildings
  • Publicly funded health buildings
  • Privately funded health buildings
  • Publicly funded miscellaneous buildings
  • Privately funded educational buildings
  • Other privately funded institutional buildings
  • Privately funded miscellaneous buildings
  • Chart: Major Market Segmentation for the Institutional Building Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Institutional Building Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Institutional Building Construction Industry

  • Industry Globalization
    Major Companies
    CIMIC Group LimitedLendLease Group
  • Table: CIMIC Group Limited - financial performance
  • Table: LendLease Group - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Institutional Building Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Institutional Building Construction Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Building The Education Revolution (Ber)
  • Federal Government stimulatory fiscal spending aimed at containing the effects of the global economic slowdown. This program allocated $16.2 billion to the refurbishment of educational buildings.
  • Nabers
  • The National Australian Built Environment Rating System is a performance-based environmental impact rating system for existing buildings. It covers energy, water, waste and indoor environment.
  • Public-Private Partnership (Ppp)
  • A contractual agreement between a public sector agency and a private company through which each party shares skills, assets and financial resources to deliver a service or facility for public use.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Institutional Building Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Institutional Building Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Institutional Building Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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