The construction and architecture industry consists of companies that provide planning and design service for building and structures and construction of buildings. The three main markets for the architecture and construction industry are residential, commercial and industrial and institutional building market. Investment levels in new building and structures influence the overall demand for the industry. Factors determining the levels of investment are interest rate levels and availability of finance, current and expected rates of general economic growth, expected yield on investment (both long-term rental yield and speculative capital gains), etc.
Over the five years through 2013-2014, industry revenue is forecasted to increase by 0.4% annually. The industry is still recovering from the slow growth in the past five years. Rising property yields, falling interest rates and increased availability of loanable funds has helped to increase investor confidence, which is increasing the overall industry activity.
Industry activity is spread according to the distribution of population and economic activity. The vast majority of enterprises are located in New South Wales and Victoria, due to the high population and economic activity in these states. Establishments in these states account for almost 50% of total establishments in Australia. Queensland and Western Australia account for less than 25% of total establishments and the rest are scattered in the remaining states and territories.
The concentration level in the industry is low. However, the level of competition within the industry is high, and the trend is gradually increasing.
- Find ATO benchmarks at (https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/About/Small-business-benchmarks/)offer a broad database of small business benchmarks, which are a guide to help business compare their performance against similar businesses in the industry.
- A detailed strategic plan and performance measure helps the company manage to keep track of its operational and financial performance that is a key to its success;
- Employees must identify which projects are crucial to success for the overall company strategy and prioritise them;
- Hiring skilled employees, training them and their successful retention is crucial;
A lot of companies fail as they cannot cover their overhead expenses specially when business is slow;