Flush with success: New Zealand's construction boom has supported strong revenue growth

The Plumbing Services industry is highly fragmented. No major players dominate the industry. Firms provide gasfitting and mechanical, sanitary, water, drainage and roofing plumbing for local customers. Industry players typically employ fewer than five people or are sole proprietors, while licencing requirements and the industry's labour-intensive nature prevent firms from developing significant market share.The industry has grown at a rapid rate over the past five years, on the back of New Zealand's construction boom. Residential and commercial building development, primarily in Auckland, has underpinned the industry's growth. Rising residential house prices, low interest rates and population growth have driven demand for the construction of new dwellings...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
7.7%
Forecast Growth 18-23
Profit
Employment
9,108
Businesses
3,960
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Strong residential construction activity has bolstered the industry's growth over the past five years
  • A shortage of qualified plumbers has driven profit and revenue growth for industry operators
  • Demand from residential building developers is expected to slow over the next five years
  • Industry Report - Industry Investment Chapter

    The Plumbing Services industry exhibits a low level of capital intensity. In 2017-18, for every dollar spent as wages, an estimated $0.05 is invested in capital. Most industry tasks, such as gasfitting, water plumbing, sanitary plumbing and mechanical plumbing are labour-intensive and difficult to automate. Capital requirements are limited to smaller investments such as vehicles and basic tools, particularly for sole proprietors or firms with few employees. Larger players may invest in specialised equipment, especially firms that focus on drain repair services. However, capital costs can often be mitigated by leasing equipment from specialised construction wholesalers, which can provide greater flexibility when scaling workflow in line with rising or falling demand...purchase to read more.

    Additional Insights for the Plumbing Services Industry

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

  • Having a good reputation
  • Ability to quickly adopt new technology
  • Ability to change which market the firm operates in
  • IBISWorld analysts also discuss how external factors such as Demand from non-residential building construction and Dwelling commencements in the Plumbing Services industry impact industry performance..

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    What's in this report

    What is the Plumbing Services in New Zealand Industry?

    Industry players primarily provide general plumbing or drainage services on a contract basis. Services typically include drain repair, gas plumbing, guttering and septic tank repair and installation. The industry excludes gas appliance repairs, large-scale sewerage or drainage systems construction and septic tank cleaning services.

    Industry Products
  • Water plumbing
  • Sanitary plumbing
  • Gasfitting
  • Mechanical plumbing
  • Drainlaying and roofing plumbing
  • Industry Activities
  • Plumbing repair
  • Repair of installed plumbing
  • Guttering and roof installation and repair
  • Gas plumbing
  • Drain construction and repair (excluding sewerage or stormwater drainage systems)
  • 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
  • Dwelling commencements
  • Demand from residential building construction
  • Real household disposable income

  • Current Performance
  • Residential and commercial building construction
  • Licencing and employee shortages
  • Repairs market
  • Chart: Revenue Growth

  • Industry Outlook
  • Construction trends
  • Repair and maintenance
  • Industry structure and opportunities
  • Table: Plumbing Services Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • House Construction in New Zealand
  • Commercial Property Operators in New Zealand

  • Key Selling Industries
  • Agricultural and Construction Machinery Wholesaling in New Zealand
  • Heavy Machinery and Scaffolding Rental and Hiring in New Zealand
  • Household Appliance Wholesaling in New Zealand

  • Products & Services
  • Water plumbing
  • Sanitary plumbing
  • Gasfitting
  • Mechanical plumbing
  • Drainlaying and roofing plumbing
  • Chart: Plumbing Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential properties
  • Non-residential properties
  • Other
  • Chart: Major Market Segmentation for the Plumbing 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 Plumbing Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plumbing 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 Plumbing 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 Plumbing 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
    Certifier
  • A fully accredited plumber that can supervise projects and other plumbers.
  • Electric Eel
  • A drain clearing tool that comprises flexible cables and rotating cutting tools.
  • Water Jetter
  • A machine that uses high pressure water to clear away sludge, grease, and sediment blockages in drains.
  • What Our Customers Say

    Why buy this report?

    The Plumbing Services in New Zealand 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 Plumbing 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 Plumbing 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 Plumbing 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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