Construction in Australia - Market Research Report

Construction industry trends (2014-2019)

poll Average industry growth 2014–2019: 2.1%

Divergent trends in key building and infrastructure industries have constrained the Construction division's performance over the past five years. Building industries have grown their revenue over the period, supporting divisional revenue growth. However, reduced non-building construction activity has affected the division's performance. This revenue contraction has stemmed from the completion and winding back of major mining and engineering construction projects over the past five years. Divisional revenue is expected to expand only marginally over the five years through 2019-20, increasing at an annualised 0.5% to $423.7 billion. This includes an anticipated decline by 2.1% during the current year, associated with weaker investment in the infrastru...
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Construction industry outlook (2019-2024)

poll Average industry growth 2019-2024: x.xlockPurchase this report or a membership to unlock the average company profit margin for this industry.

The Construction division's performance is forecast to improve over the next five years, supported by the anticipated return to growth in all of the key general construction industries. The Building Construction subdivision is forecast to grow at an annualised X.X% over the five years through XXX-XX, while the Heavy and Civil Engineering Construction subdivision is projected to grow at an annualised X.X%. This growth is projected to filter through to the specialised construction trades and support further improvement in divisional profitability. Overall, division revenue is forecast to grow at an annualised X.X% over the five years through XXX-XX, to $XX.X billion. This improved performance stems from the gradual return to favourable trends in the re...
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Construction industry statistics

  • attach_money Market Size: $433bn
  • business Number of Businesses: 390,949
  • poll Average Industry Profit Margin: x.x%
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  • supervisor_account Industry Employment: 1,095,552

Biggest companies in the Construction industry

The companies holding the largest market share in the Construction in Australia industry include CIMIC Group Limited and LendLease Group.

  • pie_chart CIMIC Group Limited Market Share: x.x%
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  • pie_chart LendLease Group Market Share: x.x%
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What is Construction industry?

Industry Definition

Construction firms primarily construct buildings, roads, railroads, harbour or river works, transmission lines, pipelines and oil refineries. These firms are also involved in civil engineering and irrigation projects, and construct water, gas, electricity and sewerage infrastructure. Some construction firms also carry out repairs and renovations, prepare mine sites, install utilities, and take part in demolitions and excavations.

Industry Products and Services

  • Heavy industry and civil engineering construction
  • Residential building construction
  • Non-residential building construction
  • Building completion services
  • Building structure services
  • Installation trade services
  • Site preparation and other construction services

Industry Activities

  • General construction
  • Construction trade services
  • Installation trade services
  • Residential construction
  • Non-residential construction
  • Site preparation and other construction
  • Building completion services
  • Building structure services
  • Heavy industry and non-building construction

Market research report - table of contents

Industry Definition

Construction firms primarily construct buildings, roads, railroads, harbour or river works, transmission lines, pipelines and oil refineries. These firms are also involved in civil engineering and irrigation projects, and construct water, gas, electricity and sewerage infrastructure. Some construction firms also carry out repairs and renovations, prepare mine sites, install utilities, and take part in demolitions and excavations.

Main Activities

  • General construction
  • Construction trade services
  • Installation trade services
  • Residential construction
  • Non-residential construction
  • Site preparation and other construction
  • Building completion services
  • Building structure services
  • Heavy industry and non-building construction

Similar Industries

Additional Resources

Industry Statistics Snapshot

Industry Structure

Executive Summary

Key External Drivers

Private non-residential construction capital expenditure has been the most important demand determinant for the Construction division since the late 2000s...
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Private non-residential construction capital expenditure
Capital expenditure on private dwellings
Capital expenditure by the public sector
10-year bond rate

Current Performance

Division drivers
 Chart: Revenue Growth

Industry Outlook

Residential developments
Non-residential building growth
Engineering construction
 Table: Construction in Australia - Market Research Report Industry Revenue Outlook

Industry Life Cycle

Life Cycle Reasons
 Chart: Benchmarking - Construction in Australia - Market Research Report Industry Lifecycle vs The Economy

Supply Chain

Key Buying Industries

Building Societies in Australia
Architectural Services in Australia
Professional, Scientific and Technical Services
Retail Property Operators in Australia



Key Selling Industries

Wholesale Trade
Finance in Australia
Professional Services in Australia
Integrated Logistics in Australia



Products & Services

Industries in the Construction division provide various services based on the type of building or structure being constructed or the specialised trade ser...
Private corporations
Households
Federal, state and local governments



Demand Determinants

The principal determinant of demand for the Construction division is capital expenditure in the construction of buildings and structures, along with maint...
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Major Markets

Private corporations
Households
Federal, state and local governments




 Chart: Major Market Segmentation for the Construction in Australia - Market Research Report Industry

International Trade

Business Locations

Chart: Business Locations by State Chart: Business Locations by State

Market Share Concentration

The Construction division exhibits low market share concentration. The four largest construction firms are expected to contribute less than 10.0% of divis...
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Key Success Factors

Cost Structure Benchmarks

Profit, Purchases, Wages, Other Costs
 Chart: Cost Structure Benchmarking – Sector vs Construction in Australia - Market Research Report

Basis of Competition

Internal competition
External competition

Barriers to Entry

 Table: Barriers to Entry Checklist for the Construction in Australia - Market Research Report Industry

Industry Globalization

CIMIC Group Limited, formerly Leighton Holdings Limited, is one of Australia's largest construction firms and one of the world's largest contract mining c...
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CIMIC Group

 Table: CIMIC Group - financial performance

Lendlease Group

 Table: Lendlease Group - financial performance

Capital Intensity

The Construction division displays low capital intensity. Operators in the division primarily provide skilled trade and construction management services. ...
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 Chart: Level of Capital Intensity for the Construction in Australia - Market Research Report Industry
 Chart: Tools of the Trade: Growth Strategies for Success

Technology & Systems

Revenue Volatility

Chart: Volatility vs Industry Growth Chart: Volatility vs Industry Growth

Regulation & Policy

Industry Assistance

Table: Industry data Table: Industry Data for the Construction in Australia Industry

Industry Revenue (2007-2026)
Industry Gross Product (2007-2026)
Establishments (2007-2026)
Businesses (2007-2026)
Employment (2007-2026)
Exports (2007-2026)
Imports (2007-2026)
Wages (2007-2026)
Domestic Demand (2007-2026)

Table: Annual Percentage Change for Key Industry Data Table: Annual Percentage Change for Key Industry Data

Table: Key Ratios for Industry Key Dat Table: Key Ratios for Industry Key Data

Table: Industry Financial Ratios Table: Industry Financial Ratios

Liquidity Ratios
Coverage Ratios
Leverage Ratios
Operating Ratios
Cash Flow & Debt Service Ratios (% of Sales)
Assets, %
Liabilities, %

CONSTRUCTION SERVICES

NON-RESIDENTIAL BUILDING

OTHER RESIDENTIAL BUILDING

RESIDENTIAL BUILDING

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Included in Report

  • Industry Financial Ratios
    Industry Financial Ratios
  • Revenue Forecasts
    Revenue Forecasts
  • Historical and Forecast Growth
    Historical and Forecast Growth
  • Industry Market Size
    Industry Market Size
  • Industry Major Players
    Industry Major Players
  • Profitability Analysis
    Profitability Analysis
  • SWOT Analysis
    SWOT Analysis
  • Industry Trends
    Industry Trends
  • Industry Operating Conditions
    Industry Operating Conditions
  • Porter's 5 Forces Analysis
    Porter's 5 Forces Analysis

Why buy this report on the Construction industry?

IBISWorld industry market research reports enable you to:

  • Find out about key industry trends
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This report on Construction in Australia:

  • 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 Construction in Australia 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 Construction in Australia, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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