Building profit: High-value and post-earthquake projects have aided industry profitability

Players in the Heavy Industry and Other Non-Building Construction industry primarily construct engineering projects such as railways, dams, electricity and telecommunications transmission towers, harbour works, irrigation systems, water and gas supply systems and power plants. Over the past five years, industry growth has been spurred by an upswing in New Zealand's construction activity. Most of the industry's revenue is sourced from publicly funded projects outlined in the Thirty Year New Zealand Infrastructure Plan 2015. Population growth over the period has also driven demand for utilities and transportation networks. Overall, industry revenue is forecast to grow at a compound annual rate of 1.1% over the five years through 2017-18, to reach $5.7 billion...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 13-18
1.1%
Forecast Growth 18-23
Profit
Employment
16,100
Businesses
1,298
Market Share of Companies

Industry Threats & Opportunities

  • Publicly funded projects generate the majority of revenue for the industry
  • Subcontracted labour has increased, promoting wages to fall as a share of revenue
  • Private-sector involvement in the industry is likely to increase over the next five years
  • Industry Report - Starting a New Business Chapter

    The Heavy Industry and Other Non-Building Construction industry has moderate barriers to entry. Competition is high for industry operators across different scales and levels of complexity for projects. Larger participants compete on tender for significant infrastructure projects, while small-scale operators compete for subcontracting work and smaller projects. Construction firms often have established reputations for project delivery, while smaller operators have typically built up networks and relationships with larger project managers and prime contractors. This can present a challenge for new entrants’ success and profit generation in the industry...purchase to read more.

    Additional Insights for the Heavy Industry and Other Non-Building Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Heavy Industry and Other Non-Building Construction Industry are

  • Establishment of brand names
  • Ability to compete on tender
  • Good project management skills
  • IBISWorld analysts also discuss how external factors such as Capital expenditure by the public sector and Population in the Heavy Industry and Other Non-Building Construction industry impact industry performance..

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    What's in this report

    What is the Heavy Industry and Other Non-Building Construction in New Zealand Industry?

    Industry companies primarily construct engineering projects such as railways, dams, irrigation systems, harbour and river works, and water and gas supply systems. Projects also include sports fields construction; pipeline laying and construction; on-site assembly of boilers, furnaces or heavy electrical machinery from prefabricated components; and general repair of such structures, machinery and equipment. Road and bridge infrastructure construction are excluded from the industry.

    Industry Products
  • Water works
  • Transport infrastructure construction
  • Irrigation infrastructure construction
  • Electricity infrastructure construction
  • Telecommunications infrastructure construction
  • Heavy industrial and other construction
  • Industry Activities
  • Railway construction
  • Pipeline construction
  • Sewerage treatment plant construction
  • Recreational infrastructure construction
  • Water supply, dams, lakes, treatment plants and irrigation systems construction
  • Telecommunications transmission lines construction and cable laying
  • Boiler, furnace and kiln construction
  • Electrical machinery installation
  • Harbour works, dredging, and canal, jetty or wharf 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
  • Population
  • Demand from wireless telecommunications carriers
  • Natural disasters

  • Current Performance
  • Natural disasters
  • Industry structure
  • Major telecommunications projects
  • Chart: Revenue Growth

  • Industry Outlook
  • Private sector involvement
  • Industry structure
  • Telecommunications infrastructure investment
  • Table: Heavy Industry and Other Non-Building Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heavy Industry and Other Non-Building Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining in New Zealand
  • Engineering Consulting in New Zealand
  • Wired Telecommunications Network Operation in New Zealand

  • Key Selling Industries
  • Gravel and Sand Quarrying in New Zealand
  • Heavy Machinery and Scaffolding Rental and Hiring in New Zealand

  • Products & Services
  • Heavy industrial and other construction
  • Transport infrastructure construction
  • Electricity infrastructure construction
  • Water works
  • Telecommunications infrastructure construction
  • Irrigation infrastructure construction
  • Chart: Heavy Industry and Other Non-Building Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Electricity, gas, water and waste services companies
  • Other companies
  • Rail, port and other transport companies
  • Mining companies
  • Telecommunications companies
  • Chart: Major Market Segmentation for the Heavy Industry and Other Non-Building Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Subcontractors
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Heavy Industry and Other Non-Building Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heavy Industry and Other Non-Building Construction Industry

  • Industry Globalization
    Fletcher Building Limited,
  • Table: Fletcher Building Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Heavy Industry and Other Non-Building 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 Heavy Industry and Other Non-Building Construction 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
    Gigabits Per Second (Gbps)
  • A measure of data transfer speed. One gigabit is equal to one billion bits.
  • Non-Recourse Loan
  • A type of loan that is secured by collateral, but for which the borrower is not personally liable.
  • Public Private Partnership (Ppp)
  • An arrangement involving one or more public-sector and private-sector companies, often formed to provide public infrastructure or service.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Heavy Industry and Other Non-Building Construction in New Zealand 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 Heavy Industry and Other Non-Building Construction in New Zealand:
    • 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 Heavy Industry and Other Non-Building Construction in New Zealand 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 Heavy Industry and Other Non-Building Construction in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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