Steel trap: Declining demand from infrastructure construction has negatively affected revenue

Downstream residential and non-residential construction markets are the primary driver of demand for the Structural Steel Fabricating industry. The industry has also been increasingly affected by import competition over the past five years. Increasing demand from construction markets over the past five years has supported industry growth. However, declining demand from non-building infrastructure markets has posed a major obstacle to industry expansion over the period.Industry revenue is expected to decline by 4.1% over the five years through 2017-18. Domestic demand for structural steel fabricated products is projected to decline by an annualised 5.9% to total $7.2 billion over the same period...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 13-18
-4.1%
Forecast Growth 18-23
Profit
Employment
17,800
Businesses
1,810

Industry Threats & Opportunities

  • Steep decline in domestic demand for structural steel fabricated products over the past five years
  • Industry profitability is expected to have declined substantially over the past five years
  • Non-residential building construction will be an important driver of demand for structural steel products
  • Industry Report - Industry Investment Chapter

    Industry players manufacture a range of structural steel products. Capital intensity varies depending on the type of product. Some products are simple and generic, so little design labour input is required. The smaller scale steel fabricating firms usually have a higher labour component of production than the larger manufacturers.Capital depreciation costs currently account for about 4.0% of industry revenue, while labour costs have contracted over the past five years and account for an estimated 24.8% of revenue in 2017-18. This indicates that the industry has a medium level of capital intensity, allocating $6.20 in payments to labour, for every dollar spent on capital equipment. Inc...purchase to read more.

    Additional Insights for the Structural Steel Fabricating Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Structural Steel Fabricating Industry are

  • Access to highly skilled workforce
  • Proximity to key markets
  • Marketing of differentiated products
  • IBISWorld analysts also discuss how external factors such as Demand from non-residential building construction and Demand from heavy industry and other non-building construction in the Structural Steel Fabricating industry impact industry performance..

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    What's in this report

    What is the Structural Steel Fabricating Industry?

    Industry firms manufacture structural steel components that are used in buildings and other structures.

    Industry Products
  • Rolled form structural framework
  • Reinforcing rods and bars
  • Reinforcing mesh and wire
  • Other fabricated steel products
  • Iron and steel bridges
  • Industry Activities
  • Fabricated structural steel
  • Prefabricated steel girder and joist
  • Perforated steel plate
  • Prefabricated structural steel part
  • Reinforcing mesh of welded steel
  • Reinforcing steel rods
  • Rolled form structural framework products
  • Prefabricated steel roof truss
  • Prefabricated steel scaffolding
  • 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 non-residential building construction
  • Demand from heavy industry and other non-building construction
  • Demand from residential building construction
  • Demand from road and bridge construction
  • Trade-weighted index
  • Domestic price of iron and steel

  • Current Performance
  • Trade exposure
  • Construction trends
  • Product substitution
  • Profitability narrows
  • Chart: Revenue Growth

  • Industry Outlook
  • International trade
  • Construction markets
  • Profitability and structure
  • Table: Structural Steel Fabricating Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Structural Steel Fabricating Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • House Construction
  • Multi-Unit Apartment and Townhouse Construction
  • Road and Bridge Construction
  • Heavy Industry and Other Non-Building Construction
  • Structural Steel Erection Services
  • Commercial and Industrial Building Construction
  • Institutional Building Construction

  • Key Selling Industries
  • Iron Smelting and Steel Manufacturing

  • Products & Services
  • Rolled form structural framework
  • Other fabricated steel products
  • Reinforcing rods and bars
  • Reinforcing mesh and wire
  • Iron and steel bridges
  • Chart: Structural Steel Fabricating Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Non-residential building contractors and developers
  • Non-building construction firms
  • Wholesalers
  • Residential building firms
  • Other industries
  • Chart: Major Market Segmentation for the Structural Steel Fabricating Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Utilities
  • Depreciation
  • Freight
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Structural Steel Fabricating

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Structural Steel Fabricating Industry

  • Industry Globalization
    BlueScope Steel Limited, Arrium Limited,
  • Table: BlueScope Steel Limited - financial performance
  • Table: Arrium Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Structural Steel Fabricating 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 Structural Steel Fabricating Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Girders
  • Supporting structures that function like joists and are arranged in different cross-sectional shapes to enhance their strength.
  • Joists
  • Horizontal supporting structures that usually span between two walls or two supporting beams.
  • Trusses
  • Triangular-shaped support structures made up of straight rods or beams connected at their joints.
  • What Our Customers Say

    Why buy this report?

    The Structural Steel Fabricating market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Structural Steel Fabricating:
    • 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 Structural Steel Fabricating 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 Structural Steel Fabricating, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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