Electrical Services Industry In Australia – Present Condition, Market Trends & Demand

According to the Australian research company IBISWorld, the electrical services industry had faced challenging market conditions for the last few years, but improved investment into housing market & ongoing maintenance activity in industrial and commercial premises is envisioned to spur growth in the industry. 
 
The electrical services industry in Australia is assumed to grow at two percent rate every year for over the next four years to 2020, recording a revenue of about $21.4 billion, as predicted by IBISWorld. A detailed survey was conducted by the research company on the electrical services industry, prioritising the macro industry trends in overall sector & micro trends faced by firms which do business in industry. Given below are the interesting highlights. 
 
Industry’s present condition 
 
The bigger, multi-disciplined contracting companies are benefiting from investing into the mining & infrastructure markets. A lot of small-scale contracting companies are struggling to shape their regular flow of work, although a few are specialising in renewable energy and IT cabling. A few contractors have already emphasised on delivering home automation services, which includes electronic control of security systems, lighting and appliances. 
 
Contractors performing housing renovation & maintenance work in Victorian & SA markets are facing strained trading conditions. The annual reports provided by NECA for these states point out that it’s the tough economic conditions that are causing distress for most of its members. The contractors for this reason are bidding on very low profit margins and are mostly wanting to subcontract the jobs to the bigger electrical firms. 
 
Market trends 
 
Electrical services industry in Australia generates most of its revenue for about 70% from repair works, new installation & maintenance activities in non-residential and residential property markets and the remaining from work in industrial & engineering market. The contractors usually work in a wide variety of markets and use their varied multidisciplinary skills and abilities. 
 
Residential market demand 
 
1/3rd of industry’s yearly revenue comes from jobs done in residential sector. The electrical jobs in this sector mainly include installation works done for newly constructed buildings, installations for renovation works, installation activity in housing market, electrical repairs and maintenance activities on the existing premises. Installations in housing market is boosted by widespread acceptance of the emerging communications technology like broadband cable, home automation, ADSL and pay TV connections, and the demand for installation of solar PV. 
 
Commercial market demand
 
Rewiring, repair, installation and maintenance work on commercial buildings like schools, offices and shopping complexes generate about thirty-seven percent of work’s total value done by electrical services industry. The market segment for over past few decades have been able to maintain its significance and this has been possible mainly because of the demand in usage of data processing & communications equipment. Growth in commercial & industrial building market is going to stimulate the demand for electrical installation and repair services. It is however expected that commercial property markets will expand gradually over the years and that businesses will look to install energy-efficient options into their premises. 
 
Heavy industry & non-building construction market
 
The demand from heavy industrial & no-building construction industry may decline over the years but the activity in the market is going to remain at high levels & provide an essential platform for contractors who are servicing energy, resources & telecommunications infrastructure markets. The services like installation & maintenance of the heavy industrial, transport, manufacturing and electrical machinery is thus not going to be out of demand. In fact, demand for electricians and electrical services has increased a lot nowadays with more high-tech electronics being fitted into the mines & related operations.