Lift off: Demand from non-residential construction will elevate industry performance

The Construction Machinery and Operator Hire industry generates most of its revenue from supplying equipment and skilled operators for high-rise commercial building and apartment projects. These projects require cranes, and pile-driving and pumping equipment to erect multistorey buildings or install heavy structural components. The industry also rents out specialised construction machinery and personnel for work on mining and infrastructure projects.Over the past five years, the industry's performance has been subject to divergent trends across key construction markets. Apartment construction surged to a record peak in 2015-16, while demand for work on mining and infrastructure projects climbed to record levels in 2013-14...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-2.0%
Forecast Growth 18-23
Profit
Employment
14,000
Businesses
1,925
Market Share of Companies

Industry Threats & Opportunities

  • Divergent trends in downstream building markets have negatively affected the industry
  • Industry establishment numbers have declined as underperforming branches have closed
  • Demand conditions are projected to strengthen across most construction markets
  • Industry Report - Industry Key Buyers Chapter

    The industry has a low level of market share concentration. The industry has many small-scale businesses that operate in narrow geographic markets. The four largest players are estimated to account for less than 20% of industry revenue in 2017-18.The industry is fragmented, containing many sole proprietors. The vast majority of enterprises (95.9%) are small businesses with a workforce of fewer than 20 people, and just over half the businesses have no paid employees. A relatively small portion of businesses employ more than 200 people. Almost half of all industry operators generate annual revenue of less than $200,000, while approximately 10.5% of businesses generate annual revenue of more than $2.0 million...purchase to read more.

    Additional Insights for the Construction Machinery and Operator Hire Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Construction Machinery and Operator Hire Industry are

  • Optimum capacity utilisation
  • Ability to compete on tender
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Demand from commercial and industrial building construction and Demand from heavy industry and other non-building construction in the Construction Machinery and Operator Hire industry impact industry performance..

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    What's in this report

    What is the Construction Machinery and Operator Hire Industry?

    Firms in this industry hire out machinery, equipment (mainly cranes) and operators for use on a range of construction and industrial projects.

    Industry Products
  • Subcontract lift services
  • Contract lift services
  • Dry hire services
  • Other services
  • Industry Activities
  • Crane hire with operator
  • Construction machinery hire with operator (except earthmoving equipment)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from commercial and industrial building construction
  • Demand from heavy industry and other non-building construction
  • Demand from multi-unit apartment and townhouse construction
  • Actual capital expenditure on mining
  • Demand from road and bridge construction

  • Current Performance
  • Profit volatility
  • Competition remains intense
  • Commercial building recovers
  • Apartment growth
  • Mining and infrastructure drive demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Non-residential building trends
  • Apartment trends
  • Infrastructure trends
  • Profit and job growth
  • Table: Construction Machinery and Operator Hire Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Construction Machinery and Operator Hire Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • House Construction
  • Multi-Unit Apartment and Townhouse Construction
  • Road and Bridge Construction
  • Heavy Industry and Other Non-Building Construction
  • Commercial and Industrial Building Construction

  • Key Selling Industries
  • Farm and Construction Machinery Wholesaling
  • Machinery and Scaffolding Rental
  • Motor Vehicle Engine and Parts Repair and Maintenance
  • Petroleum Product Wholesaling

  • Products & Services
  • Subcontract lift services
  • Contract lift services
  • Dry hire services
  • Other services
  • Chart: Construction Machinery and Operator Hire Industry Products and Services Segmentation

  • Demand Determinants
  • Non-residential building demand
  • Residential building demand
  • Engineering construction demand

  • Major Markets
  • Non-residential building contractors and developers
  • Infrastructure project contractors and developers
  • Residential building contractors and developers
  • Other markets
  • Chart: Major Market Segmentation for the Construction Machinery and Operator Hire 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 Construction Machinery and Operator Hire

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Construction Machinery and Operator Hire Industry

  • Industry Globalization
    Tutt Bryant Group Limited,
  • Table: Tutt Bryant Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Construction Machinery and Operator Hire 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 Construction Machinery and Operator Hire Industry
    Includes:
  • 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
    Crane Supervisor
  • Supervises the lifting operation while adhering to safety systems.
  • Dogmen
  • A person qualified at applying slinging techniques, selecting and load lifting gear, and directing a crane or hoist operator.
  • Dry Hire
  • A contract where the hire firm supplies the only the construction machinery and the client takes responsibility for the operation.
  • Riggers
  • Responsible for ensuring the safe rigging of moving loads and communicating with crane operator either by hand signals or radio.
  • Swms
  • A safe work method statement for high risk construction work is prepared to brief on-site personnel about the lifting operation.
  • Wet Hire
  • A contract where the hire firm supplies the construction machinery with an operator.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Construction Machinery and Operator Hire 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.

    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 Construction Machinery and Operator Hire:
    • 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 Construction Machinery and Operator Hire 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 Construction Machinery and Operator Hire, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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