Middle of the road: Revenue growth is set to moderate as competitive conditions tighten

Revenue for the Road and Bridge Construction industry has fluctuated significantly over the past five years, reflecting the start-up and completion of several large-scale motorway, bridge and tunnel developments. Federal and state government capital expenditure has strongly affected the industry's performance over the period. Additionally, the private sector has continued its long-term trend of investing in toll roads.Industry revenue is expected to increase at an annualised 5.3% over the five years through 2018-19, to reach $28.9 billion. The value of work done on road and bridge construction has fluctuated widely over the period due to the start-up and completion of large-scale private and public sector road projects...read more.

Industry Statistics & Market Size
Revenue
$29bn
Annual Growth 14-19
5.3%
Forecast Growth 19-24
Profit
Employment
44,180
Businesses
2,425

Industry Threats & Opportunities

  • Revenue has fluctuated due to the start-up and completion of various large-scale developments
  • Demand has been weak for new roads on new housing subdivisions and local road networks
  • Competitive conditions are projected to tighten slightly over the next five years
  • 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 $2.39 to wage costs. This represents a high level of capital intensity.In addition to direct wage costs, which absorb approximately 14.1% of industry revenue in 2018-19, the industry heavily relies on non-permanent labour in the form of subcontracted and consulting services. These services include specialist trade services and general labourers, and professional and technical service providers. The...purchase to read more.

    Additional Insights for the Road and Bridge Construction Industry

    IBISWorld has determined the most important Key Success Factors for the Road and Bridge Construction 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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    What's in this report

    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, overpass and other construction
  • Maintenance and repairs to infrastructure
  • Alterations and additions to existing infrastructure
  • 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 overpass and cycle path construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Privately driven projects
  • Publicly funded upgrades
  • 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

  • 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 infrastructure
  • Bridge, overpass and other 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Road and Bridge Construction

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Department of Transport NSW, CIMIC Group Limited,
  • Table: Department of Transport NSW - financial performance
  • Table: CIMIC Group Limited - financial performance

  • 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
    Table: Industry Data for the Road and Bridge 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
    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).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Road and Bridge 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.

    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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