Australian Hire Industry Exceeds $10 Billion
In the latest report from Ibis World, the Australian Hire industry has been valued at $10.2 billion.
The market, which comes under the ANZSIC 2006 code 6631, captures all dry hire equipment categories, including cranes, scaffolding, powered access, general construction machinery, and site services.
According to the most recent Ibis data, the sector has slowed through 2024, with some significant downturns in some areas of construction, notably the continued decline in high-rise residential construction, and project housebuilding markets throughout Australia, which have been subject to multiple company closures over the last 18 months. However, the industry is well hedged across many other vertical sectors and has enjoyed sustained funding for large-scale infrastructure projects, including landmark road and railway developments and renewable energy projects.
Swings and roundabouts
According to the report, the outlook will see “a recovery in house construction and solid DIY home renovation activity will eventually support rental sales for many suburban hire companies”. However, “the staged completion of prominent transport infrastructure projects and adverse trends in mining output point to weaker rental revenue for tunnelling, earthmoving, paving and extraction machinery.”
Rentals for material handling equipment will remain strong, reflecting robust conditions in household spending that support the industrial logistics, wholesaling and distribution markets.
Profitability is expected to improve with the return of complex, high-rise residential building. The report also predicts an improvement in regional house-building and renovation markets.
For more detailed analysis from Ibis World, visit: IbisWorld.
