Off-colour: Weak construction spending over the next five years will dampen industry performance

The Painting and Decorating Services industry has expanded over the past five years. Industry revenue is expected to rise at an annualised 1.1% over the five years through 2017-18. Surging residential property prices have boosted capital expenditure on construction and contributed to a strong uptick in dwelling commencements. These trends have benefited industry players, as more clients have requested industry services to paint and decorate new apartments, townhouses, units and houses. Favourable economic conditions and positive consumer sentiment have also encouraged homeowners and landlords to spend on discretionary services, such as home improvements and alterations...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
1.1%
Forecast Growth 18-23
Profit
Employment
8,278
Businesses
4,883
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Strong house prices and construction activity have boosted demand for industry services
  • A residential construction boom is driving much of the industry’s revenue growth
  • The industry is set to enter a downturn over the five years through 2022-23
  • Industry Report - Industry Investment Chapter

    The Painting and Decorating Services industry exhibits a low level of capital intensity. In 2017-18, for every dollar invested in capital, an estimated $17.30 is spent on wages. The industry is highly labour-intensive, as painting and decorating depends largely on manual labour. Staff are employed to measure work areas, prepare materials, remove cracks or holes, level surfaces, apply coats of paint and clean-up work sites.Capital expenditure is negligible for painting and decorating firms. Most industry players are sole proprietors that service local households. As a result, most investment are tied to vehicles, such as utes, which can be used to transport items such as ladders, paints, brushes, clothes and other consumables. Som...purchase to read more.

    Additional Insights for the Painting and Decorating Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Painting and Decorating Services Industry are

  • Ability to compete on tender
  • Ability to change which market the firm operates in
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on construction and Demand from residential building construction in the Painting and Decorating Services industry impact industry performance..

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    What's in this report

    What is the Painting and Decorating Services in New Zealand Industry?

    Industry players paint or decorate residential houses, buildings and other structures. Industry firms also provide spray painting or wallpapering services. The industry excludes firms that predominantly paint roofs.

    Industry Products
  • Internal painting services
  • External painting services
  • Decorating services
  • Other services
  • Industry Activities
  • House painting
  • House wallpapering
  • House decorating
  • Building painting
  • Spray painting
  • 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 on construction
  • Demand from residential building construction
  • Dwelling commencements
  • Real household discretionary income

  • Current Performance
  • Industry structure
  • Residential construction boom
  • Industry participation and profitability
  • Declining DIY drives demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Construction trends
  • Consumer trends and industry participation
  • Niche activities
  • Table: Painting and Decorating Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Painting and Decorating Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • House Construction in New Zealand
  • Multi-Unit Apartment and Townhouse Construction in New Zealand
  • Commercial Property Operators in New Zealand
  • Commercial and Industrial Building Construction in New Zealand

  • Key Selling Industries
  • Hardware Wholesaling in New Zealand
  • Heavy Machinery and Scaffolding Rental and Hiring in New Zealand
  • Metal Cladding, Waterproofing and Scaffolding Services in New Zealand
  • Paint and Coatings Manufacturing in New Zealand

  • Products & Services
  • Internal painting services
  • External painting services
  • Decorating services
  • Other services
  • Chart: Painting and Decorating Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential building construction companies
  • Households and residential building property managers
  • Non-residential building construction companies
  • Non-residential building property managers
  • Industrial companies and engineering firms
  • Other customers
  • Chart: Major Market Segmentation for the Painting and Decorating Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Painting and Decorating Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Painting and Decorating 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 Painting and Decorating 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 Painting and Decorating Services 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
    Antibacterial
  • Antibacterial paint provides protection against mould and other undesirable properties.
  • Diy
  • Do-it-yourself, a homeowner or landlord who performs industry activities themselves, such as painting or decorating a dwelling, without contracting an industry player.
  • Varnish
  • A finish applied to wood that adds gloss and protection.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Painting and Decorating Services in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Painting and Decorating Services 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 Painting and Decorating Services 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 Painting and Decorating Services 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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