Heavy hearted: Revenue has sharply 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. A resources boom supported private investment in mining and energy projects, such as the construction of LNG processing plants, CSG 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 14.4% over the five years through 2018-19, to total $32.2 billion. This includes an anticipated contraction of 3.6% in the current year, contributing to employment and profitability declining further...read more.

Industry Statistics & Market Size
Revenue
$32bn
Annual Growth 14-19
-14.4%
Forecast Growth 19-24
Profit
Employment
58,050
Businesses
7,430

Industry Threats & Opportunities

  • Investment in mining developments has been wound back, contributing to revenue declines
  • Public investment in the rollout of the NBN and rail infrastructure has supported the industry
  • The recent completion of LNG processing plants and CSG installations will limit industry activity
  • Industry Report - Industry Analysis Chapter

    Operators in the Heavy Industry and Other Non-Building Construction industry previously benefited from unprecedented infrastructure investment that gathered momentum through the late 2000s and peaked around 2013-14. The resources boom underpinned this investment and contributed to an unprecedented surge in demand for industry services. Contractors also derived benefited from investment in renewable energy projects, desalination plants, gas pipelines, CSG extraction and telecommunications infrastructure. However, the completion of major projects has contributed to the industry’s performance sharply deteriorating over the past three years. Des...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 repairs 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
  • Transport infrastructure construction
  • Electricity infrastructure construction
  • Water and sewerage infrastructure construction
  • Other 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
  • Wages
  • Purchases
  • Subcontractors
  • 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
    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 (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
    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 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 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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