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1301.0 - Year Book Australia, 2003  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 24/01/2003   
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Contents >> Service Industries >> Selected business services

Hire industries

The ABS conducted its first survey of the hire industries in respect of 1999-2000. The hire industries included the plant hiring and leasing industry, and the personal and household goods hiring industry. Excluded from this survey were: non-employing businesses, businesses mainly retailing plant and goods which also hire plant and goods as a secondary activity, businesses mainly hiring transport equipment, and businesses which mainly hire plant and equipment with an operator. However, because of the close alignment of crane hire to the plant hiring and leasing industry, all employing businesses mainly involved in the hire of cranes were included.

At 30 June 2000, there were 1,332 employing businesses involved in the two hiring industries, comprising 923 businesses in the plant hiring and leasing industry and 409 businesses in the personal and household goods hiring industry (table 21.19).

Employment of the two hiring industries at the end of June 2000 was 16,728, with 13,235 persons working in the plant hiring and leasing industry and 3,493 persons in the personal and household goods hiring industry. Persons employed on a permanent full-time basis made up the majority of employment in both industries, with the plant hiring and leasing industry having 10,494 persons (79%) employed on this basis, and the personal and household goods hiring industry showing 2,119 persons (61%) working on a permanent full-time basis. The average labour costs per employee for the two industries were $44,700. The higher incidence of permanent full-time employees in the plant hiring and leasing industry resulted in an average labour cost per employee of $48,300. In comparison, the personal and household goods hiring industry showed an average labour cost per employee of $30,700.

During 1999-2000, the total income for businesses in the two hiring industries was $2,606m, with income received from the provision of hire services being the most significant source of income for both industries. Businesses in the plant hiring and leasing industry generated $1,890m from the provision of hire services, which included income from the hiring of scaffolding ($237m), access equipment ($187m), cranes ($162m), earthmoving equipment ($162m), forklifts ($107m), compaction equipment ($98m), portable accommodation ($82m) and air equipment ($74m). Income from hire services for the personal and household goods hiring industry was $333m, with the main sources of income coming from the hire of televisions, radios, VCRs and related equipment ($122m), event/exhibition goods and equipment ($74m) and whitegoods ($49m).

During 1999-2000, businesses in the plant hiring and leasing, and personal household goods hiring industries incurred total expenses of $2,314m, the most significant being labour costs of $732m (32% of total expenses). Total expenses for the plant hiring and leasing industry were $1,986m, and after labour costs ($630m), the most significant expenses were depreciation of plant and equipment for hire ($244m) and repair and maintenance of hire equipment ($154m). The total expenses of the personal and household goods hiring industry were $327m, with labour costs of $102m representing 31% of total expenses. Other significant expenses for this industry were depreciation of plant and equipment for hire ($58m), rental of premises ($17m) and repair and maintenance of hire equipment ($14m).

For 1999-2000, the two hire industries combined recorded an operating profit margin of 9.9%. Businesses in the plant hiring and leasing industry had an operating profit margin of 10.4%, compared to 7.2% in the personal and household goods hiring industry.


21.19 HIRE INDUSTRIES - 1999-2000

Units
Plant hiring and
leasing
Personal and household
goods hiring
Total hire
industries

Businesses at 30 June
no.
923
409
1,332
Employment at end June
Working proprietors and partners
persons
*191
171
362
Employees
Permanent full-time
persons
10,494
2,119
12,613
Permanent part-time
persons
513
330
843
Casual
persons
2,037
873
2,910
Total
persons
13,044
3,322
16,366
Total
persons
13,235
3,493
16,728
Income
Hire services
Hired to business sector
$m
1,791.5
158.8
1,950.3
Hired to households for personal use
$m
98.5
174.4
272.9
Total
$m
1,890.0
333.2
2,223.2
Other goods and services
$m
306.5
18.9
325.4
Other
$m
49.2
8.2
57.4
Total
$m
2,245.7
360.3
2,606.0
Expenses
Labour costs
$m
629.9
102.1
732.0
Depreciation of plant and equipment for hire
$m
244.0
57.6
301.6
Repair and maintenance of equipment for hire
$m
153.8
14.0
167.8
Other
$m
958.7
153.6
1,112.3
Total
$m
1,986.4
327.3
2,313.7
Operating profit before tax
$m
224.5
24.9
249.4
Operating profit margin
%
10.4
7.2
9.9

Source: Hire Industries, Australia 1999-2000 (8567.0).


Business events venues

The first census of businesses involved in the business events venues industry was conducted in respect of the 2000-01 financial year. For the purposes of these statistics, the business events venues industry has been defined as businesses and establishments which provided space to stage business events for 500 or more delegates. These business events included conferences, conventions, exhibitions and other business meetings of a commercial, financial, technological or scientific nature. As such, venues which mainly held social and entertainment events were excluded.

At 30 June 2001, there were 121 businesses within the scope of the business events industry, comprising 13 convention/exhibition businesses and 108 businesses with other business events venues such as accommodation, casinos and showground businesses. These 121 businesses contained 1,495 lettable rooms with event floor space of 657,011 square metres (table 21.20).

At 30 June 2001, there were 10,347 persons working in the business events venues industry, of whom 7,865 or 76% were casuals. There were 2,482 permanent employees in the industry, comprising 863 permanent employees of convention/exhibition businesses and 1,619 permanent employees of other business events venues.

During 2000-01, the total income for the business events venues industry was $655m, the main sources of income being food and beverage income ($302m) and income from venue hire ($111m). Food and beverage income accounted for $67m (40%) of the income of convention and exhibition businesses and $235m (48%) of income other businesses. Venue hire income was $55m for convention and exhibition businesses, and $56m for other business event venues. Other major income items for the business events venues industry included audio visual equipment hire ($37m), car parking ($18m) and on-hire income of goods and equipment ($12m).

The total expenses during 2000-01 for the business events venues industry were $421m, with convention/exhibition businesses and other business events venues reporting total expenses of $179m and $242m respectively. Half (50%) of the industry's expenses were in the form of labour costs ($210m), with other significant expenses being purchases ($86m), on-hire equipment expenses ($27m) and depreciation and amortisation ($24m).


21.20 BUSINESS EVENTS VENUES - 2000-01

Units
Convention/exhibition businesses
Other business
events venues
Total

Businesses at end June
no.
13
108
121
Event floor space at end June
square metres
226,950
430,061
657,011
Total delegate/attendee days for events
days
7,625,157
13,262,705
20,887,862
Employment
Permanent
persons
863
1,619
2,482
Casuals
persons
2,257
5,608
(a)7,865
Total
persons
3,120
7,227
10,347
Income
Food and beverage income
$m
67.1
234.6
301.7
Venue hire
$m
55.4
56.0
111.4
Takings from car park operations
$m
18.1
. .
18.1
Audio visual equipment income
$m
12.4
24.9
37.4
Other
$m
16.0
170.1
185.9
Total
$m
169.0
485.6
654.5
Expenses
Labour costs
$m
88.9
120.9
209.7
Purchases
$m
18.6
67.2
85.9
On-hire equipment expenses
$m
4.4
22.5
26.9
Depreciation and amortisation
$m
24.1
. .
24.1
Other
$m
43.0
31.2
74.2
Total
$m
179.0
241.8
420.8

(a) Includes 1,543 casuals sourced from other businesses.

Source: Business Events Venues Industry, Australia, 2000-01 (8566.0).


Cleaning services

The ABS conducted its first survey of the cleaning services industry in respect of 1998-99. The industry includes businesses mainly engaged in the cleaning of windows and building interiors, and related cleaning services. Businesses mainly involved in the cleaning of building exteriors or cleaning of carpets and curtains are excluded.

At 30 June 1999 there were 5,938 businesses in the cleaning services industry, of which 2,864 were sole proprietorships or partnerships. As shown in table 21.21, the cleaning of commercial buildings and offices was the main cleaning activity for 2,899 businesses (49% of all businesses in the industry).

At 30 June 1999, total employment in the cleaning services industry was 95,001 persons, of whom 90,267 persons (95%) worked as cleaners. Nearly half (48%) of the persons working in the industry were permanent part-time employees. Casual employees accounted for 26% and full-time employees accounted for 22% of total employment. The remaining 5% of employment comprised working proprietors and partners.

During 1998-99 the total income of the cleaning services industry was $2,137m, of which $2,044m was derived from general cleaning services. Some 42% of the latter came from the cleaning of commercial buildings and offices, 16% from the cleaning of education premises, 15% from retail premises and 8% from industrial premises.

Labour costs of $1,377m represented 70% of total expenses ($1,981m) of the cleaning services industry during 1998-99. The average labour costs per employee were $15,200, which reflected the high incidence of casual and part-time employees working in the industry. After expenses, the operating profit before tax for the cleaning services industry was $156m, representing an operating profit margin of 7.3%.


21.21 CLEANING SERVICES INDUSTRY - 1998-99

Units
Value

Businesses at 30 June
Sole proprietors or partnerships
no.
2,864
Incorporated companies
no.
2,415
Trusts
no.
659
Total
no.
5,938
Businesses by main cleaning activity
Commercial buildings/office premises
no.
2,899
Industrial premises
no.
345
Retail premises
no.
532
Domestic premises
no.
717
Event venues
no.
28
Education premises
no.
776
Hospitality premises
no.
449
Health premises
no.
85
Transport facilities
no.
38
Other
no.
69
Total
no.
5,938
Employment at 30 June
Cleaning
persons
90,267
Other
persons
4,734
Total
persons
95,001
Income
Income from general cleaning services
From the private sector
$m
1,555.4
From the public (government) sector
$m
488.7
Total
$m
2,044.1
Other income
$m
92.9
Total
$m
2,137.0
Expenses
Labour costs
$m
1,377.1
Payments to sub-contractors for general cleaning services
$m
166.0
Purchases
$m
100.2
Other expenses
$m
337.9
Total
$m
1,981.0
Operating profit before tax
$m
155.5
Operating profit margin
%
7.3

Source: Cleaning Services Industry, Australia, 1998-99 (8672.0).


Of the 5,938 businesses in the cleaning services industry, only 101 businesses (less than 2% of all businesses) employed more than 100 persons. These large businesses accounted for 52% of industry income, and 55% of industry employment.

Security services

The first ABS survey of the security services industry was conducted in respect of 1998-99. The industry is defined as all businesses mainly engaged in providing security, protection and private enquiry services. It excludes police services and businesses mainly providing locksmith services, alarm installing, or manufacturing and wholesaling of alarms.

At 30 June 1999 there were 1,714 businesses in the security services industry (table 21.22). The provision of static guard/crowd control services was the main activity of 811 businesses within the sector, and the provision of mobile patrol services was the main activity of 420 businesses. Of the remainder, 368 businesses were mainly involved in private investigative and enquiry services, 54 businesses in security monitoring services, and 26 businesses in cash-in-transit/armoured car services.

At 30 June 1999 there were 31,752 persons working in the security services industry. Casual employees accounted for 47% of total employment, while full-time employees and permanent part-time employees accounted for 37% and 14% respectively.

During 1998-99, the total income of the security services industry was $1,395m. Businesses in the industry carried out a diverse range of security work, with 38% of total income generated from static guard and crowd control services, 23% from mobile patrol services and 22% from other security services including cash-in-transit and armoured car services. Other major sources of income were security monitoring services (9% of total income) and private investigator and enquiry services (4% of total income).

Expenses of $1,304m were incurred by the security services industry during 1998-99. Labour costs of $756m accounted for 58% of total expenses. In 1998-99, the industry recorded an operating profit before tax of $90m, which represented an operating profit margin of 6.5%.


21.22 SECURITY SERVICES INDUSTRY - 1998-99

Units
Value

Businesses by main security activity at 30 June
Cash-in-transit/armoured car service
no.
26
Mobile patrol service
no.
420
Static guard/crowd control service
no.
811
Security monitoring service
no.
54
Private investigator/enquiry service
no.
368
Other security services
no.
35
Total
no.
1,714
Employment at 30 June
persons
31,752
Income
Income from security services
Mobile patrol service
$m
320.9
Static guard/crowd control service
$m
532.2
Security monitoring service
$m
121.2
Private investigator/enquiry service
$m
53.3
Other security services
$m
311.6
Total
$m
1,339.2
Other income
$m
55.6
Total
$m
1,394.8
Expenses
Labour costs
$m
756.2
Payments to sub-contractors for security services
$m
205.9
Other expenses
$m
341.5
Total
$m
1,303.6
Operating profit before tax
$m
89.7
Operating profit margin
%
6.5

Source: Security Services, Australia, 1998-99 (8557.0).


At 30 June 1999 there were 19 businesses in the security services industry employing 100 persons or more. These businesses accounted for 54% of industry employment and 63% of industry income in 1998-99; the operating profit before tax of these large businesses was $68m, accounting for 76% of the industry's operating profit before tax.

Employment services

The first ABS survey of the employment services industry was conducted in respect of 1998-99. The industry includes all businesses mainly involved in the provision of employment services such as personnel recruitment, search, selection, referral and job placement on a permanent, temporary and contract employment basis.

At 30 June 1999 there were 2,127 businesses involved in the provision of employment services (table 21.23). Of these, 1,719 (82%) were for profit, with the remainder being not-for-profit organisations. During 1998-99 there were 2,736,333 job placements made by these businesses, of which 88% were temporary and contract placements.

At 30 June 1999 there were 28,912 persons working directly for businesses in the employment services industry, with 50% of these persons working as employment consultants. A further 278,937 persons were employed by businesses in the employment services industry and were on-hired to other businesses.

During 1998-99, the total income generated by the employment services industry was $7,818m. The main components of this income were derived from employers for persons on-hired ($5,784m or 74%) and income derived from job network placement activity of $595m. Income generated from employer payments for permanent placement and personnel recruitment services was $548m.

Total expenditure of businesses in the employment services industry during 1998-99 was $7,404m. Labour costs were the highest single expense ($5,758m), representing 78% of total expenses. The average labour costs per person working directly for businesses in the employment services industry were $39,500. Other significant expenses incurred by the industry were rent, leasing and hiring expenses ($130m) and advertising expenses ($83m).

In 1998-99 the industry recorded an operating profit/surplus before tax of $426m, representing an operating profit margin of 5.6%.


21.23 EMPLOYMENT SERVICES INDUSTRY - 1998-99

Units
Value

Businesses at 30 June
no.
2,127
Placements during the year ended 30 June
By for profit businesses
no.
2,561,676
By not-for-profit businesses
no.
174,657
Total
no.
2,736,333
Employment at 30 June
Persons working directly for employment placement businesses
persons
28,912
Persons on-hired to other businesses/organisations
persons
278,937
Total
persons
307,849
Income
Income from employers for
Permanent placement/personnel recruitment
$m
547.5
Persons on-hired
$m
5,783.7
Other
$m
501.0
Total
$m
6,832.1
Income from job network placement activity
$m
594.6
Government funding
$m
164.7
Other
$m
226.3
Total
$m
7,817.7
Expenses
Labour costs
$m
5,757.7
Rent, leasing and hiring expenses
$m
130.1
Advertising expenses
$m
82.9
Other expenses
$m
1,433.4
Total
$m
7,404.1
Operating profit/surplus before tax
$m
426.1
Operating profit margin
%
5.6

Source: Employment Services, Australia, 1998-99 (8558.0).


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