Melbourne, Victoria – Electrical Services Industry in Australia has been suffering from challenging conditions for the last few years. However, the trend is forecasted to improve over the next 5 years due to the recovery from housing and infrastructure markets.
Get to know a bit of the industry
Electrical services industry in Australia consists of contractors and operators involving in installing, repairing and maintenance of new or existing electrical equipment. The industry’s revenue mostly generated from a varied size of projects for both non-residential, residential property markets. Meanwhile, 37% of its products and services are maintained, 34.5% are the electrical upgrade and 24.5% are electrical installation.
The recent downward movements
After a record peak in 2013-14 due to unprecedented investment in mining-related structures and public capital expenditure programs, the industry experiences a sharp dropping during 2015-18 (IBISWorld, 2018). Fortunately, the situation has been supported by the rollout of the National Broadband Network (NBN), work on major rail projects and renewable energy developments.
The promising future to look ahead
Even though demand for installation services in the infrastructure construction markets is expected to remain below the previous peaks, it will gradually recover. IBISWorld (2018) data indicated that electrical services industry in Australia will see a jump in annual growth rate from 1.5% to 2.3% over the next 5 years. The amount will account for total $20.7 billion. The profit margin is also forecasted to grow thanks to the increase in demand for housing and infrastructure markets in the near future.
What can we expect from Electrical Services in Australia?
While Melbourne accounts for the second largest percentage of total enterprises in Australia (25.5%), only after Sydney (32%), electrical businesses and electricians will surely have something to look forward to.
About Cornford Electrics