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Where’s the opportunity?

The Australian scaffolding market continues to grow and is projected to reach $1.56 billion by 2025. Multinationals currently dominate the industry, with a combined market share of approximately 48%. The COVID-19 pandemic has hindered activity in apartments and non-residential building projects which have severely dampened demand for high-rise scaffolding services. The industry is made up of mostly smaller scaffolding companies and barriers to entry are relatively low. Firms tend to enter the industry easily with revenue conditions improving. There are few large companies that specialise only in scaffolding, with many operating multi-disciplined trades. We see much potential for smaller technology-led companies to succeed in the Australian market.

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Our Export Tips:

Kwikstage type scaffolding is the most used system across Australia, accounting for a market share of 80 percent. There is increasing demand for Layher, At-pac or similar ring type scaffolding systems on larger, more complex commercial projects. The Peri Up range of products is beginning to increase its market use, especially when combined with its formwork systems. The nature of scaffolding services has also been evolving. While in Australia, multinational corporations have dominated larger projects, small companies have been able to harness new technology and incorporate these into their practises much faster paces, giving them a competitive advantage over their large organisation counterparts.  

Prices of purchasing a single Aluminium mobile scaffold (3-6 metres) range from $999 to $2639. The cost of a scaffolding job in Australia differs according to location – on average costs in NSW $3250, VIC $2500 and QLD $2100
New South Wales accounts for 34.8% of industry enterprises, which exceeds the state’s share of Australia’s population and economic activity. The state’s building activity is focused on constructing high-rise urban developments, which typically require significant scaffolding services. In Victoria, there has been significant demand from high-rise apartment and commercial building construction. The state also derives seasonal demand for scaffolding services for temporary structures associated with the Formula 1 Grand Prix and the President’s Cup Golf tournament. Queensland derives strong demand from large-scale property developments in Brisbane, the Gold Coast and Sunshine Coast. The construction of major LNG processing plants on Curtis Island created a demand for scaffolding services over the past five years.
New scaffolding methodologies and materials are bringing new ways for companies to engage with their clients. Customers are increasingly looking to contractors for advice on reducing costs and installation timelines. Rather than traditional contractor/sub-contractor approaches, you want to use promotional methods that focus on building partnerships. Look to really get to understand your customers. Trade shows such as the Australian Build are valuable channels for connecting with potential clients.  

Our Strategic Takeaways:

We see some potential for smaller new entrants targeting private sector construction in Australia. This is because government-led investments in major road and rail developments in Australia traditionally rely on local or large multinational organisations for key projects. Such projects also require lengthy tendering processes to which new market entrants may not have the resources to participate in. Make sure to leverage technology and prioritise partnership approaches to service delivery. 

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