Put in storage: Demand for warehouse construction fails to stop revenue declines

The Factory and Industrial Building Construction industry constructs a variety of buildings, ranging from simple tilt-wall warehouse spaces to sophisticated purpose-built laboratories with high security and humidity-controlled environments. Industry revenue responds to trends in demand from several segments of the economy, in particular from the Manufacturing, Mining divisions and the Agriculture subdivision. Much of the industry’s recent activity has focused on the construction of warehousing and distribution facilities to meet demand from Wholesale and Retail Trade divisions, which encompasses the upward trend in merchandise trade...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 13-18
-3.9%
Forecast Growth 18-23
Profit
Employment
6,900
Businesses
1,590
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Warehouse construction growth has failed to offset reduced demand for factory construction
  • Investment in warehouse and distribution facilities has increased due to the online shopping boom
  • Investment in warehouse facilities will continue underpinning the industry's performance
  • Industry Report - Industry Products Chapter

    Industry firms provide construction services to industrial property developers, acting mainly as prime contractors or joint-venture developers, but also as subcontractors. Industry firms operating as prime contractors on industrial building projects generate the bulk of industry revenue and are increasingly involved in both project design and construction. Prime contractors take responsibility for procuring and specifying building materials, and recruiting skilled labour and subcontractors.WarehousesThe construction of warehouses, distribution facilities and logistics centres is the industry's largest segment, accounting for an estimated 61.5% of revenue in 2017-18. The...purchase to read more.

    Additional Insights for the Factory and Industrial Building Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Factory and Industrial Building Construction Industry are

  • Close relationship with property developers
  • Heavily dependent on skilled subcontractors
  • Tendering for contracts
  • IBISWorld analysts also discuss how external factors such as Demand from manufacturing and Demand from mining in the Factory and Industrial Building Construction industry impact industry performance..

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    What's in this report

    What is the Factory and Industrial Building Construction Industry?

    Companies in the industry construct manufacturing structures, with firms specifically engaging in new work, additions and alterations.

    Industry Products
  • Factories and other production buildings
  • Warehouses
  • Agriculture and aquaculture buildings
  • Other industrial buildings
  • Industry Activities
  • Factory and other secondary production building construction
  • Warehouse building construction
  • Agriculture and aquaculture building construction
  • Other industrial buildings construction (crusher houses and oil depots)
  • 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 manufacturing
  • Demand from mining
  • Total merchandise imports and exports
  • Demand from industrial and other property operators
  • Demand from agriculture

  • Current Performance
  • Profit and employment
  • Demand for warehouse construction
  • Demand for factories and other industrial buildings
  • Demand for agricultural and aquaculture buildings
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability and jobs growth
  • Building market trends
  • Table: Factory and Industrial Building Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Factory and Industrial Building Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wholesale Trade
  • Transport, Postal and Warehousing
  • Online Shopping
  • Industrial and Other Property Operators

  • Key Selling Industries
  • Construction
  • Hardware Wholesaling
  • Heating, Cooling and Ventilation Equipment Manufacturing
  • Machinery and Scaffolding Rental
  • Professional, Scientific and Technical Services

  • Products & Services
  • Warehouses
  • Factories and other production buildings
  • Other industrial buildings
  • Agriculture and aquaculture buildings
  • Chart: Factory and Industrial Building Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Industrial property developers
  • Resource firms
  • Public sector agencies
  • Wholesalers and import agents
  • Manufacturers
  • Transport and logistics companies
  • Chart: Major Market Segmentation for the Factory and Industrial Building Construction 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 Factory and Industrial Building Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Factory and Industrial Building Construction 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 Factory and Industrial 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 Factory and Industrial 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
    Commercial Buildings
  • Refers to non-residential buildings that have a commercial application such as offices, retail stores, hotels and entertainment venues.
  • Greenfield
  • Building on a previously unused or undeveloped site.
  • Institutional Buildings
  • Refers to non-residential buildings that are generally operated to provide a public service, including schools, universities, hospitals, law courts and religious buildings.
  • Safe Work Method Statement (Swms)
  • A statement prepared to brief onsite personnel about health and safety risks.
  • What Our Customers Say

    Why buy this report?

    The Factory and Industrial Building Construction 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 Factory and Industrial Building Construction:
    • 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 Factory and Industrial Building Construction 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 Factory and Industrial Building Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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