Housing construction slump crimps demand for plastic pipe manufacturers: IBISWorld

The national market for plastic pipe and plastic packaging material manufacturing is worth a predicted $4.7 billion this financial year, with revenues shrinking an average of 1.1 per cent annually between 2020 and 2025, according to a new report from IBISWorld.

A contributor to the decline in revenue in “a mixed-performance” category was increased mortgage rates, which “have driven a decline in residential building construction activity” and a drop in housing starts.

Research published last October by think tank the Institute of Public Affairs was cited, claiming a fall in housing commencements of 9.0 per cent in 2023-24 to a 12-year low of 158,690. 

“This downturn has strained revenue for manufacturers focused on the housing sector, highlighting the need to diversify beyond residential construction,” added IBISWorld.

On the other hand, segments of the category – such as plastic packaging materials – were seeing “significant growth because of the expanding ecommerce sector and increasing demand for durable and lightweight packaging solutions.”

According to a summary of the report by the market research firm, the sector represented by ANZSIC code C1912 is currently made up of 880 businesses and 11,563 companies.

The leaders by revenue were Pact Group ($753.2 million), Aliaxis ($452.2 million), and Visy ($141.8 million.)

Picture: Credit Pulp Build/Youtube