A whole lot of nothing: Falling non-building construction activity has reduced demand

The Site Preparation Services industry is one of the largest specialist construction services industries. The industry provides services that are integral to the early stages of most construction and resource development projects. Most industry participants are small-scale contractors that supply heavy construction equipment (excluding cranes) with operators, although the industry also includes larger-scale firms that typically take full responsibility for the site preparation work.Activity in non-building infrastructure markets surged to record levels in 2013-14, but has fallen sharply over the past five years due to the completion of some major projects. Demand for site preparation services in the key building markets has been subdued over the period...read more.

Industry Statistics & Market Size
Revenue
$25bn
Annual Growth 14-19
-3.2%
Forecast Growth 19-24
Profit
Employment
59,400
Businesses
17,740
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Divergent trends in downstream construction markets have influenced the industry's performance
  • The current slump in site preparation work on infrastructure and residential building projects has negatively affected the industry
  • A return to growth in most construction markets is projected to support industry profit margins
  • Industry Report - Industry Analysis Chapter

    The Site Preparation Services industry grew significantly during the late 2000s, with activity peaking in 2013-14 due to demand from major mining developments and other non-building infrastructure projects. Falling investment in these markets and subdued demand conditions in key building markets have reduced industry revenue over the past five years. Over the five years through 2018-19, industry revenue is projected to decline by an annualised 3.2% to total $24.8 billion. Revenue is expected to decline by 6.6% during the current year as demand from non-building infrastructure and residential building markets falls. Total industry employment has fallen by an estimate 2.7% over the period. ...purchase to read more.

    Additional Insights for the Site Preparation Services Industry

    IBISWorld has determined the most important Key Success Factors for the Site Preparation Services are:

  • Having a good technical knowledge of the product
  • Ability to compete on tender
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Demand from building construction and Demand from heavy industry and other non-building construction in the Site Preparation Services industry impact industry performance..

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    What's in this report

    What is the Site Preparation Services Industry?

    Industry companies primarily conduct earthmoving work, such as levelling construction sites, excavating foundations, digging trenches or removing overburden from mine sites. The industry also includes companies that hire out earthmoving equipment with operators (wet hire).

    Industry Products
  • Wet hire on building sites
  • Wet hire on infrastructure projects
  • Specialist mine preparation
  • Demolition work
  • Specialist services
  • Industry Activities
  • Demolition of buildings or other structures
  • Earthmoving and trench digging
  • Excavation
  • Explosives laying
  • Ground dewatering and removal of overburden
  • Hiring out earthmoving plants with operators (wet hire)
  • Land clearing (urban and rural)
  • Levelling (construction sites)
  • Mine site preparation
  • 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 building construction
  • Demand from heavy industry and other non-building construction
  • Actual capital expenditure on mining
  • Demand from road and bridge construction
  • Cost of natural disasters

  • Current Performance
  • Infrastructure demand
  • Building demand
  • Profit and employment
  • Competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Building construction rebounds
  • Mining and infrastructure markets
  • Profit and jobs growth
  • Table: Site Preparation Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Site Preparation Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • House 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
  • Fuel Retailing
  • Gravel and Sand Quarrying
  • Machinery and Scaffolding Rental
  • Rock, Limestone and Clay Mining

  • Products & Services
  • Wet hire on building sites
  • Wet hire on infrastructure projects
  • Specialist mine preparation
  • Specialist services
  • Demolition work
  • Chart: Site Preparation Services Industry Products and Services Segmentation

  • Demand Determinants
  • Engineering construction demand
  • Road construction demand
  • Building construction demand

  • Major Markets
  • Road contractors and authorities
  • Residential building contractors and developers
  • Mining companies
  • Non-residential building contractors and developers
  • Other infrastructure developers
  • Chart: Major Market Segmentation for the Site Preparation Services 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 Site Preparation Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Site Preparation Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Site Preparation Services 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 Site Preparation Services 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
    Dry Hire
  • The hire or lease of plant and machinery without an operator. Dry hire equipment can be hired on an hourly, daily or weekly basis.
  • Ground Dewatering
  • The removal of excess water from the soil through pumping, and the application of absorbent clays or sealing with shotcrete and aggregate.
  • Removal Of Overburden
  • The removal of the loose material that overlies an ore deposit.
  • Soil Stabilisation
  • Preparation of land for building or other use by stabilising the soil through dewatering, grassing, and shoring with rocks, aggregate or concrete.
  • Wet Hire
  • The hire or lease of plant and machinery with a suitably qualified operator working under the direction of the prime contractor. Wet hire can be paid on an hourly, daily or weekly basis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Site Preparation Services 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 Site Preparation Services:
    • 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 Site Preparation Services 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 Site Preparation Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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