High rise: Strong investment in warehousing and distribution facilities builds industry revenue

The Commercial and Industrial Building Construction industry consists of firms that primarily construct non-residential buildings, such as offices, shopping centres, cinemas, restaurants, airport terminals, factories and warehouses. These building projects are mainly funded by private sector property developers and end-users. The industry has a highly fragmented structure, comprising many small- to medium-scale building firms that rely heavily on subcontracting skilled and professional labour. However, several large-scale firms operate in the industry and are capable of undertaking complex construction projects, such as major office towers and shopping centres...read more.

Industry Statistics & Market Size
Revenue
$47bn
Annual Growth 15-20
6.1%
Forecast Growth 20-25
Profit
Employment
57,500
Businesses
10,215
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Strong demand for commercial buildings has outweighed moderate demand for industrial buildings
  • Prices for key building materials have grown over the past five years, constraining profit growth
  • The completion of major building projects is forecast to constrain industry revenue
  • Industry Report - Industry Analysis Chapter

    The Commercial and Industrial Building Construction industry has displayed strong growth over the past five years, with fluctuations in revenue corresponding with trends in office, retail and warehouse construction. Investment in new hotel and transport building construction projects over the period has benefited industry firms. These projects include the new Ritz-Carlton hotels in Perth and Melbourne, the redevelopment of the Gold Coast Airport terminal in Queensland and the construction of a fourth terminal at Melbourne Airport. The industry’s performance has been further boosted by investment in entertainment and recreation projects. The...purchase to read more.

    Additional Insights for the Commercial and Industrial Building Construction Industry

    IBISWorld has determined the most important Key Success Factors for the Commercial and Industrial Building Construction are:

  • Having good working relationships with subcontracting building trade specialists
  • Development of a symbiotic relationship with another industry
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as Household consumption expenditure and Total labour force in the Commercial and Industrial Building Construction industry impact industry performance..

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    What's in this report

    What is the Commercial and Industrial Building Construction Industry?

    Industry operators construct commercial and industrial non-residential buildings. They also perform alterations, renovations and general repairs on commercial and industrial buildings, and organise and manage construction.

    Industry Products
  • Retail building construction
  • Office construction
  • Other business premises construction
  • Entertainment and recreational building construction
  • Factory and industrial building construction
  • Hotel construction
  • Industry Activities
  • Office building construction
  • Retail building construction
  • Hotel, motel and hostel construction
  • Entertainment building construction
  • Recreation building construction
  • Factory and industrial building construction
  • Prefabricated commercial and industrial building assembly, erection and installation
  • General repair and renovation of commercial and industrial buildings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Household consumption expenditure
  • Total labour force
  • year bond rate
  • Demand from office property operators
  • Demand from retail property operators
  • Number of businesses

  • Current Performance
  • Key building markets
  • Profit and jobs growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Falling profitability and employment
  • Building demand drivers
  • Table: Commercial and Industrial Building Construction Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Wholesale Trade
  • Consumer Goods Retailing
  • Hotels and Resorts
  • Office Property Operators
  • Retail Property Operators
  • Industrial and Other Property Operators

  • Key Selling Industries
  • Construction
  • Hardware Wholesaling
  • Machinery and Scaffolding Rental
  • Professional Services

  • Products & Services
  • Office construction
  • Retail building construction
  • Factory and industrial building construction
  • Hotel construction
  • Entertainment and recreational building construction
  • Other business premises construction
  • Chart: Commercial and Industrial Building Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Commercial buildings
  • Industrial buildings

  • Major Markets
  • Commercial property developers
  • End users
  • Industrial property developers
  • Other markets
  • Chart: Major Market Segmentation for the Commercial 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 Commercial and Industrial Building Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial 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 Commercial 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 Commercial and Industrial Building Construction Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dry Hire
  • The hire of plant and equipment without an operator.
  • Public-Private Partnership
  • A contractual agreement between a public sector agency and a private company where each party shares skills, assets and financial resources to deliver a service or facility for public use.
  • Wet Hire
  • The hire of plant and equipment with a qualified operator.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Commercial and Industrial Building Construction 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 Commercial 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 Commercial 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 Commercial 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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