An ill wind: Revenue has fallen as large-scale hospital developments have reached completion

The Institutional Building Construction industry constructs buildings for learning, working, healing, socialising, exercising, praying and justice purposes. The private sector is currently the dominant source of funding for the construction of healthcare buildings, aged-care facilities and religious buildings. Government departments have tightened public spending on building programs over the past five years, with the aim of reining in budget deficits. Most governments have sought greater private equity in public building stock through public-private partnership (PPP) arrangements...read more.

Industry Statistics & Market Size
Revenue
$16bn
Annual Growth 14-19
-1.5%
Forecast Growth 19-24
Profit
Employment
21,700
Businesses
3,760
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Weak public sector investment in new building stock has limited the industry’s performance
  • The completion of major hospital construction projects has caused fluctuations in industry revenue
  • Greater private equity in public buildings is anticipated to contribute to industry growth
  • Industry Report - Industry Investment Chapter

    The industry has a low level of capital intensity. The industry's principal value added relates to providing project management and trade skills, neither of which have a high capital component. Lease arrangements or subcontractors supply the bulk of the industry's capital equipment requirements.An industry's labour cost to depreciation ratio indicates capital intensity, as it indicates the share of industry revenue absorbed by each type of input for construction. Industry direct wage costs account for an estimated 11.8% of revenue in 2018-19, while the industry currently allocates about 1.1% of annual revenue on depreciation of capital equipment. For every dollar spent on capital equipment in the current year, the industry allocates $10.73 on wages. In ...purchase to read more.

    Additional Insights for the Institutional Building Construction Industry

    IBISWorld has determined the most important Key Success Factors for the Institutional Building Construction 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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    What's in this report

    What is the Institutional Building Construction Industry?

    Industry companies 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
  • Healthcare 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Profit and job trends
  • Competitive conditions
  • Educational building construction
  • Healthcare and aged-care building construction
  • Chart: Revenue Growth

  • Industry Outlook
  • Educational building construction
  • Healthcare building construction
  • Other institutional building construction
  • Table: Institutional Building Construction Industry Revenue Outlook

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

  • 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
  • Educational buildings
  • Healthcare 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
  • Privately funded educational buildings
  • Privately funded aged-care buildings
  • Privately funded healthcare buildings
  • Publicly funded healthcare buildings
  • Privately funded miscellaneous buildings
  • Publicly funded miscellaneous buildings
  • Chart: Major Market Segmentation for the Institutional Building Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Subcontractor payments
  • Purchases
  • Wages
  • Professional and technical services
  • Other
  • 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
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Institutional Building Construction Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Institutional Building Construction market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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