Industry Analysis & Industry Trends
The Gravel and Sand Quarrying industry produces raw materials that are mainly used in construction products and landscaping supplies. The industry's performance has been subdued over the past five years, largely due to low building construction growth and weak demand from concrete manufacturing companies. In particular, difficult operating conditions in 2012-13 and 2014-15 affected the industry's growth rate, as the activity in some construction industries slowed. Additionally, the reduced public sector spending on heavy industry and other non-building construction over the past five years has resulted in lower sand and gravel demand from this market.
Industry revenue is projected to increase by an annualised 1.7% over the five years through 2016-17, to $688.5 million... purchase to read more
Industry Report - Starting a New Business Chapter
Industry entry barriers are relatively high. A major barrier is the large players’ degree of vertical integration, as each is a substantial producer in the industries using sand and gravel: ready-mixed concrete, asphalt and concrete tiles. The minimum efficient scale of operation, combined with vertical integration, increases industry concentration and limits new players’ ability to enter the market. The major producers also have substantial interests in other industries, which provide a buffer against downturns in quarrying activity. Boral and Hanson are involved in supplying energy products, while Holcim manufactures concrete through its Readymix division, and pipes via Humes.
Operators must secure approvals to quarry... purchase to read more