Building up: Division revenue expected to reach record highs over next five years

IBISWorld’s Construction market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.


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
  • An anticipated increase in public capital expenditure on infrastructure will support the division

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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 record high levels in the non-building construction market in 2013-14 before winding back in recent years due to project completions. Division revenue is expected to grow at an annualised 1.4% over the five years through 2016-17, to $349.3 billion. This growth is despite an expected 10.1% revenue fall in 2016-17, due to the scaling back of investment in resource and infrastructure projects and weaker demand in the residential building market. The decline in these markets is expected to outweigh growth in road and bridge construction...

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    Industry Report - Industry Products Chapter

    Industries in the Construction division provide various services based on the type of building or structure being constructed, or the specialised trade service needed. General construction industries in the Heavy and Civil Engineering Construction subdivision and the Building Construction subdivision provide the bulk of these services. Specialised trade service industries in the Construction Services subdivision include site preparation, building completion, building structure and installation services.

    Heavy industry and civil engineering construction

    Heavy industry and civil engineering construction is expected to account for 18.7% of division revenue in 2016-17. Thi..

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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
  • Government stimulus and flood repairs
  • Chart: Revenue Growth

  • Industry Outlook
  • Residential developments
  • Commercial growth
  • Engineering construction
  • Profit trends
  • 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
  • Residential building construction
  • Heavy industry and civil engineering 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
  • Private engineering construction market
  • Residential building 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
  • Profit
  • Purchases
  • Wages
  • Consulting services
  • Depreciation
  • Rent and utilities
  • Vehicle expenses and other costs
  • 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
  • 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
    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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