Removalists in Australia Industry Market Research Report now updated by IBISWorld
The Removalists industry have had a troublesome few years with slowdowns in corporate spending and the property market leading to falling demand and industry revenue. The industry has also suffered from fluctuating operating costs. For these reasons, industry research firm IBISWorld has updated its report on the Removalists industry in Australia.
Melbourne, Australia (PRWEB) June 25, 2012
Removalists assist residents and commercial tenants to move locations, for international, interstate and intrastate moves. Removalists operate within the broader road transport sector. Despite offering specialised products and services, many of the industry’s characteristics, such as barriers to entry, freight rates and sub-contracting, are determined by the dynamics of the sector. The Removalists industry has low market share concentration, with most industry operators being small. According to IBISWorld industry analyst Caroline Finch, “removalists have had a troublesome few years with slowdowns in corporate spending and the property market leading to falling demand and industry revenue”. As a result, industry revenue is expected to decline by 1.0% annualised over the five years through 2011-12.
Revenue declined sharply in 2007-08 and 2008-09 due to corporate customers slashing unnecessary spending, such as office and staff relocations. However, the sluggish recovery in 2009-10 and 2010-11 was perhaps most worrying for industry operators. Finch adds, “this occurred despite first home buyers fuelling growth in the housing market”. Dwelling commencements shot up by 27.4% in 2009-10. While corporate spending remains weak, the Australian property market has also stalled as government incentives have been wound back. The general public use industry services when they feel wealthier. As such, demand tends to follow a similar pattern to housing construction and housing finance. In 2011-12, industry revenue is forecast to grow by just 1.9% to $2.86 billion.
The Removalists industry has also suffered from fluctuating operating costs. In the lead up the global financial crisis, the price of fuel surged to nearly $1.80 per litre. This put pressure on margins, especially for small operators that are subcontracted by the industry’s major players or rely on their local customer base and word of mouth. Over the next five years, demand for industry services is expected to increase as the property market recovers and businesses start to expand operations. Industry costs will increase over the next five years, due to increasing fuel prices and growing compliance costs to regulation. Despite this, industry profitability is expected to improve as increased costs are passed through to movers as demand strengthens.
For more information, visit IBISWorld´s Removalists report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry provide moving and relocation services. These include local, long-distance and international transport of used household, institutional and commercial goods, furniture and equipment. Industry firms often also provide incidental packing and storage activities.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/6/prweb9631108.htm