Heavy-duty: Industry revenue has declined due to the completion of major projects

The Heavy Industry and Other Non-Building Construction industry surged to record activity in 2013-14, fuelled by unprecedented investment in several key infrastructure markets. This included a resources boom that supported private investment in mining and energy projects, such as the construction of LNG processing plants, coal seam gas fields and pipeline developments across northern Australia. However, the staged completion of these projects is expected to contribute to industry revenue declining at an annualised 9.7% over the five years through 2017-18, to $31.5 billion. This includes an anticipated contraction of 10.4% in the current year, contributing to a sharp drop in employment and profitability...read more.

Industry Statistics & Market Size
Revenue
$32bn
Annual Growth 13-18
-9.7%
Forecast Growth 18-23
Profit
Employment
59,000
Businesses
7,450

Industry Threats & Opportunities

  • The winding back of investment in mining developments has contributed to revenue declines
  • Public investment in the rollout of the NBN and rail infrastructure has supported the industry
  • Strong investment in rail and harbour infrastructure is forecast to drive industry growth
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is considered to be in the mature stage of its life cycle given that much of the demand for additional infrastructure is driven by the relatively subdued trends in population and economic growth. However, the industry has displayed wide annual fluctuations in activity over the past five years associated with the unprecedented surge of investment in resource developments and the subsequent completion of these construction projects.Technological advancement in a range of infrastructure markets is a key factor driving long-term industry expansion. This has been evident in the construction of telecommunications infrastructure for the NBN and 4G networks, renewable power generation facilities (notably wind and solar) and water resources (notably desalination plants). Ove...purchase to read more.

    Additional Insights for the Heavy Industry and Other Non-Building Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Heavy Industry and Other Non-Building Construction Industry are

  • Ability to compete on tender
  • Management of seasonal production
  • Ability to change which market the firm operates in
  • IBISWorld analysts also discuss how external factors such as Actual capital expenditure on mining and Private non-residential construction capital expenditure in the Heavy Industry and Other Non-Building Construction industry impact industry performance..

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    What's in this report

    What is the Heavy Industry and Other Non-Building Construction Industry?

    Industry companies primarily construct engineering projects or infrastructure, such as railways, dams, irrigation systems, harbour and river works, and water and gas supply systems. Projects also include oil refineries (excluding buildings); pipelines; on-site assembly of boilers, furnaces or heavy electrical machinery from prefabricated components; and general repair of such structures, machinery and equipment.

    Industry Products
  • Heavy industrial construction
  • Electricity infrastructure construction
  • Telecommunications infrastructure construction
  • Water and sewerage infrastructure construction
  • Transport infrastructure construction
  • Other construction
  • Industry Activities
  • Boiler, furnace and kiln construction
  • Transmission lines construction and cable laying
  • Electrical machinery installation
  • Harbour works, dredging, and canal, jetty or wharf construction
  • Water supply, dams, lakes, treatment plants and irrigation systems construction
  • Mineral and energy infrastructure construction
  • Pipeline construction
  • Railway construction
  • Sewerage treatment plant construction
  • Recreational infrastructure construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Actual capital expenditure on mining
  • Private non-residential construction capital expenditure
  • Capital expenditure by the public sector
  • Demand from electricity, gas, water and waste services
  • Demand from manufacturing
  • Population

  • Current Performance
  • Profit
  • Employment and enterprises
  • Downstream activity trends
  • Private and public sectors
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit and participation trends
  • Major projects and markets
  • Table: Heavy Industry and Other Non-Building Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heavy Industry and Other Non-Building Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Electricity, Gas, Water and Waste Services
  • Engineering Consulting
  • Telecommunications Services
  • Integrated Logistics

  • Key Selling Industries
  • Construction
  • Gravel and Sand Quarrying
  • Machinery and Scaffolding Rental
  • Professional, Scientific and Technical Services

  • Products & Services
  • Heavy industrial construction
  • Telecommunications infrastructure construction
  • Electricity infrastructure construction
  • Transport infrastructure construction
  • Other construction
  • Water and sewerage infrastructure construction
  • Chart: Heavy Industry and Other Non-Building Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Long-term influences
  • Short- and medium-term influences

  • Major Markets
  • Mining and manufacturing companies
  • Telecommunications carriers
  • Power generation authorities
  • Railway and port authorities
  • Water and sewerage companies
  • Other markets
  • Chart: Major Market Segmentation for the Heavy Industry and Other Non-Building Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Subcontractor payments
  • Equipment rent or lease
  • Professional and technical services
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Heavy Industry and Other Non-Building Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heavy Industry and Other Non-Building Construction Industry

  • Industry Globalization
    CIMIC Group Limited, Downer EDI Limited, Bechtel Australia Proprietary Limited,
  • Table: CIMIC Group Limited - financial performance
  • Table: Downer EDI Limited - financial performance
  • Table: Bechtel Australia Proprietary Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Heavy Industry and Other Non-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 Heavy Industry and Other Non-Building Construction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Engineering Infrastructure (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Engineering Infrastructure Construction
  • Construction of all non-building structures excluding roads and bridges. This includes the construction of water, sewer, electric power and communications infrastructure.
  • 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.
  • Renewable Energy
  • Energy that comes from natural resources and is naturally replenished, including solar, wind, tidal, and geothermal energy.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Heavy Industry and Other Non-Building 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.

    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 Heavy Industry and Other Non-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 Heavy Industry and Other Non-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 Heavy Industry and Other Non-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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