Taking the high road: New major road projects have driven industry revenue growth

Revenue for the Road and Bridge Construction industry has displayed wide cyclical fluctuations 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 had a strong effect on the industry's performance over the past five years. Additionally, the private sector has continued its long-term trend of investing in toll roads. Industry revenue is expected to increase at an annualised 2.2% over the five years through 2017-18. However, this moderate expansion masks wide fluctuations in industry activity. The value of work done on road and bridge construction fell over the two years through 2014-15, corresponding with the completion of several major projects...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Revenue has fluctuated due to the start-up and completion of various large-scale developments
  • Industry wages and employment have increased slowly over the past five years
  • The industry is forecast to maintain near-record activity throughout the next five years
  • Industry Report - Starting a New Business Chapter

    The Road and Bridge Construction industry has moderate barriers to entry. The principal barrier stems from the size and market dominance of the existing large-scale participants, particularly the state-based road authorities. The presence of these major players may potentially deter newcomers. The tendering process for public contracts favours existing construction firms with a proven track record and a good understanding of dealing with public authorities.Competitors for large-scale projects must be at the forefront of technological developments for machinery, materials and construction techniques. New entrants lacking a proven technological capability may find it difficult to gain a foothold in the market. How...purchase to read more.

    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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    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 and overpass construction
  • Maintenance and repairs to infrastructure
  • Alterations and additions to existing infrastructure
  • 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 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 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
    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, LendLease Group, Roads Corporation,
  • Table: Department of Transport NSW - financial performance
  • Table: CIMIC Group Limited - financial performance
  • Table: LendLease Group - financial performance
  • Table: Roads Corporation - 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
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 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 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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