Scaffolding Industry Australia
The scaffolding industry in Australia has gone through both positive and profitable crests to shallow and heartbreaking troughs within the scaffold industry over the past 7 years. From conceptual adaptation to industry survival, the scaffolding industry has seen some major changes in companies, market sectors and overall industry revenue and statistics. The Scaffolding Services industry has faced volatile conditions since the late 2000s, reflecting widely divergent construction market trends. However, the loss of work in the lucrative commercial building markets of the major cities (and particularly high-rise office developments), was partly offset by the accelerated growth of demand in the infrastructure market and solid growth in apartment projects.
The winding back of investment into the mineral and energy infrastructure market is projected to result in industry revenue contracting by 2.0% during the current year to total $850 million, representing growth by an annualised 0.6% over the five years through 2012-13. Industry employment is projected to average flat growth over the five years to total 4,400 people in 625 establishments in 2012-13 (0.0% annualised), while operating profit is expected to contract by 1.5% as profit margins are squeezed on commercial building projects.
The industry’s five-year performance has lagged behind the projected GDP growth (2.4% annualised), due principally to the contraction in the value of non-residential building construction (3.0% annualised). The loss of scaffolding work in the commercial building market was marginally outweighed by the robust growth in the value of non-building infrastructure construction (9.3%) and the cyclical growth in apartment building construction (4.8%). The large-scale contractors typically maintain scaffolding erection services as part of the business of supplying scaffolding systems for sale or lease. The industry’s four largest players are Cape Australia, Waco Kwikform, Acrow, and Oldfield Holdings. These companies account for less than 20% of annual industry revenue. The industry is expected to remain stable in the short term before returning to positive cyclical growth as commercial and industrial building investment rebounds with stronger general economic conditions. Industry revenue is forecast to grow by an annualised 2.2% over the next five years to total $950 million in 2017-18, lagging behind the projected pace of GDP growth (2.9% annualised), but corresponding with the improved value of non-residential building construction (1.7% annualised).
Scaffolding contractors hire and erect temporary framework used to support people and material in the construction and repair of buildings and other large structure (usually a system of metal pipes). Services include: planning and preparation of projects; the erection of scaffolding and equipment (i.e. setting of ground levels, bracing of components, and the positioning of platforms); the monitoring of scaffolding, and dismantling of scaffolding equipment on the completion of the job.
The primary activities of this industry are:
- Installation and dismantling of prefabricated scaffolds and the placement of platforms
- Inspection and monitoring of scaffold structures
- Erection of tube and coupler scaffolds (including covered ways and gantries)
- Installation of cantilever hoists, barrow ramps, sloping platforms, and crane loading platforms
- Erection of temporary grandstand seating and event staging
- Erection of hung and suspended scaffolds (i.e. hanging from tubes, wire ropes and chains)
- Hiring out of scaffold equipment
- Aluminium scaffolding erection and dismantling
- Design, planning and monitoring services
- Steel scaffolding erection and dismantling
- Supply of scaffolding for hire without operator