Industry Analysis & Industry Trends
The Construction Machinery and Operator Hire industry generates the bulk of its revenue from the supply of equipment and skilled operators for high-rise commercial building and apartment projects. These projects require cranes, pile-driving and pumping equipment to erect multistorey buildings or install heavy structural components. The industry also rents out specialised construction machinery and personnel for work on mining and infrastructure projects.
Over the past five years, the industry's performance has been subject to divergent trends across key construction markets. Apartment construction surged to a record peak in 2015-16, while demand for work on mining and infrastructure projects climbed to record levels in 2013-14... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has relatively high barriers to entry, due principally to high capital costs and the industry's tight regulatory environment. Crane operators are required to hold nationally recognised licences for each category of equipment. Those appointed to design and supervise the project require certified accreditation, including health and safety training. Technological change heightens the technical complexity of operating construction equipment. Firms must take steps to refresh employee certifications to meet any new requirements.
The industry is highly exposed to market vagaries and project deferrals. Given this, new entrants may be disadvantaged by a lack of experience in managing cash flow and allocating their resources... purchase to read more