Overview

On shaky ground: Divergent industry demand trends have led to division revenue fluctuations

IBISWorld’s Construction market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Divergent demand trends have affected the division's performance over the past five years
  • The withdrawal of government stimulus spending has constrained demand across the division
  • Wider profit margins across building and infrastructure markets will aid division profitability

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    Industry Analysis & Industry Trends

    Divergent demand trends in downstream markets have affected the Construction division's performance over the past five years. Building construction markets have been subdued during this period. Demand surged to a record high in the non-building construction market in 2013-14 before winding back over the past four years due to project completions. Division revenue is expected to grow at an annualised 0.4% over the five years through 2017-18, to $356.4 billion. This includes the marginal forecast decline in industry revenue by 0.1% in 2017-18, stemming from the scaling back of investment in infrastructure and residential building projects...

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    Industry Report - Starting a New Business Chapter

    Barriers to entering the Construction division vary by industry, according to the market share concentration, the complexity of construction and the level of capital intensity. The division has a low concentration level with the top four players accounting for less than 10% of the available market share and yielding limited scale economies. The division also has a low capital intensity of operation and many firms opt to rent or lease equipment and machinery on a project-by-project basis.

    There is significant service differentiation between the industries operating within the division. New entrants will generally only face competition from players that offer identical services. Bar..

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    Additional Insights for the Construction Industry

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

  • Ability to expand and curtail operations rapidly in line with market demand
  • Having contacts within key markets
  • Competing on tender
  • IBISWorld analysts also discuss how external factors such as Private non-residential construction capital expenditure and Capital expenditure on private dwellings in the Construction industry impact industry performance..

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    Industry Products

    What is the Construction Industry?

    Construction division 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 division firms also carry out repairs and renovations, prepare mine sites, install utilities, and are involved in demolitions and excavations.

    Industry Products
    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

    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 on private dwellings
  • Capital expenditure by the public sector
  • year bond rate
  • Population
  • Residential housing loan rates

  • Current Performance
  • Enterprises and profitability
  • Division drivers
  • Winding down of government stimulus
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit and jobs growth
  • Residential developments
  • Commercial growth
  • Engineering construction
  • Table: Construction Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Building Societies
  • Architectural Services
  • Professional, Scientific and Technical Services
  • Retail Property Operators

  • Key Selling Industries
  • Finance
  • Integrated Logistics
  • Professional Services
  • Wholesale Trade

  • Products & Services
  • Heavy industry and civil engineering construction
  • Residential building construction
  • Installation trade services
  • Non-residential building construction
  • Site preparation and other construction services
  • Building completion services
  • Building structure services
  • Chart: Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential building market
  • Private engineering construction market
  • Public engineering construction market
  • Private non-residential building market
  • Public non-residential building market
  • Chart: Major Market Segmentation for the 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 Construction

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the 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 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 Construction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Non-Residential Building
  • A building primarily intended for uses other than long-term residential purposes.
  • Other Residential Building
  • A building other than a house that is primarily used for long-term residential purposes and contains more than one dwelling unit.
  • Residential Building
  • A building predominantly consisting of one or more dwelling units. Residential buildings can be houses or other buildings in which people live.
  • 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 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 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 Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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