Metal Coating and Finishing in Australia - Market Research Report

Glimmer of hope: Revenue is anticipated to increase in line with demand from downstream markets

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

Firms that provide services in the Metal Coating and Finishing industry treat a range of metals to improve their durability and lifespan. These treatments protect metals from rust and corrosion, and can also improve their aesthetics. Most metal coating and finishing firms service downstream construction and manufacturing industries, which need durable metals to carry out their operations. Demand conditions from these key markets has been mixed; demand from building construction has dropped because of staff shortages and restrictions related to the COVID-19 outbreak, and has struggled to recover. Meanwhile, demand from heavy and civil engineering construction has risen, as demand for products necessary for railways, dams, pipelines and other major infrastructure has lifted. Spikes in the world price of zinc - the industry's most important input - have made purchase costs for firms more expensive. While companies tend to pass these costs on to consumers through higher prices, limited demand has made it difficult for them to do so, resulting in weaker performance. Overall, revenue is expected to fall at an annualised 0.3% to $2.2 billion over the five years through 2023-24. This trend includes an anticipated drop of 4.8% in 2023-24, as a downturn in demand from heavy and civil engineering construction has cut into performance. Companies in the industry are mainly engaged in engraving, polishing, heat-treating, plating, galvanising, anodising, colouring, plastic dipping, ceramic coating and finishing metals or metal products that customers supply. Firms that galvanise steel sheets or strips are excluded from the industry.