Taking the high road: Private companies are benefiting from contracts for major projects

IBISWorld’s Road and Bridge Construction market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.


Industry Threats & Opportunities

  • Revenue has fluctuated due to the start-up and completion of various large-scale developments
  • Government transport infrastructure policy has affected the industry over the past five years
  • Large-scale contracting firms are forecast to perform well and win the majority of PPP contracts

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    Industry Analysis & Industry Trends

    The Road and Bridge Construction industry's performance has fluctuated over the past five years, reflecting the start-up and completion of large-scale motorway, bridge and tunnel developments. The industry has been influenced by the capital expenditure policies of the federal and state governments, along with the long-term trend towards the greater involvement of private sector equity in toll roads.

    Industry revenue is expected to grow by an annualised 0.7% over the five years through 2016-17. This subdued overall pace of expansion masks the wide fluctuations in industry activity. The construction of roads and bridges fell sharply during 2013-14 and 2014-15 due to the completion of several major projects...

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    Industry Report - Industry Investment Chapter

    The Road and Bridge Construction industry has substantial capital inputs compared with most other construction industries. Road and bridge contractors require large amounts of low-skilled labour but also rely heavily on large-scale capital equipment. For every dollar spent on capital equipment, the industry allocates an estimated $2.42 to wage costs. This represents a high level of capital intensity.

    In addition to direct wage costs, which absorb approximately 14.3% of industry revenue in 2016-17, the industry heavily relies on subcontracted services. These subcontracted services include specialist trade services and general labourers. Combined, subcontractor payments and professional and technical services absorb an estimated 30.1% of industry revenue. The..

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    Additional Insights for the Road and Bridge Construction Industry

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

  • Ready access to investment funding
  • Access to highly skilled workforce
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Capital expenditure by the public sector and Private non-residential construction capital expenditure in the Road and Bridge Construction industry impact industry performance..

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    Industry Products

    What is the Road and Bridge Construction Industry?

    Industry firms construct, repair and maintain roads, bridges, aerodrome runways and parking lots. Firms also carry out the quarrying of earth, soil or filling, in conjunction with road or bridge construction.

    Industry Products
    Road and tunnel construction
    Bridge and overpass construction
    Maintenance and repairs to infrastructure
    Alterations and additions to existing structures
    Other non-road construction
    Industry Activities
    Road construction or sealing
    Asphalt and concrete pavement surfacing and repair
    Bridge construction
    Repair or maintenance of roads, bridges and tunnels
    Road sub-base or fill quarrying (in conjunction with road construction)
    Kerbing, guttering and road tunnel construction
    Associated road construction services (e.g. drainage and lighting installation)
    Airport runway construction
    Parking lot construction (except buildings)
    Pedestrian overpasses and cycle path 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
  • Capital expenditure by the public sector
  • Private non-residential construction capital expenditure
  • Dwelling commencements
  • year bond rate

  • Current Performance
  • Profitability
  • Linking the nation
  • Public spending
  • Private investment
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit growth and competition
  • The road ahead
  • Table: Road and Bridge Construction Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Toll Road Operators
  • Airport Operations
  • Residential Property Operators
  • Retail Property Operators
  • Land Development and Subdivision

  • Key Selling Industries
  • Construction
  • Gravel and Sand Quarrying
  • Lubricants and Other Petroleum Product Manufacturing
  • Ready-Mixed Concrete Manufacturing

  • Products & Services
  • Road and tunnel construction
  • Maintenance and repairs to infrastructure
  • Alterations and additions to existing structures
  • Bridge and overpass construction
  • Other non-road construction
  • Chart: Road and Bridge Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Public sector funding
  • Private sector funding

  • Major Markets
  • State road authorities
  • Private sector clients
  • Federal government
  • Local governments
  • Chart: Major Market Segmentation for the Road and Bridge Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Subcontractor payments
  • Purchases
  • Depreciation
  • Equipment leasing costs
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Road and Bridge Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Road and Bridge Construction Industry

  • Industry Globalization
    Major Companies
    Department of Transport NSWCIMIC Group LimitedRoads CorporationLendLease Group
  • Table: Department of Transport NSW - financial performance
  • Table: CIMIC Group Limited - financial performance
  • Table: Roads Corporation - financial performance
  • Table: LendLease Group - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Road and Bridge 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 Road and Bridge 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
    Build-Own-Operate-Transfer (Boot)
  • An arrangement that involves a private developer funding, constructing and operating public infrastructure for a set period before transferring ownership to a government.
  • Outsourcing
  • The use of outside service providers to perform various non-core activities
  • Pavement
  • The durable road surface that comprises material such as asphalt and concrete laid down on an area to handle vehicular and foot traffic.
  • Public-Private Partnership (Ppp)
  • A contractual agreement between a public agency and private company to share skills, assets and financial resources to deliver a facility for public use.
  • Toll Road
  • A road that users pay a toll to use (includes structures such as bridges and tunnels).
  • 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 Road and Bridge 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 Road and Bridge 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 Road and Bridge Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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