As of March 2025, the gross operating profit of businesses in the retail trade industry in Australia amounted to approximately 6.83 billion Australian dollars. The highest gross operating profit of retail trade businesses was recorded in December 2020.

In 2011, the net profit margin of the mining industry's 40 leading companies was approximately 24 percent. Twelve years later, in 2023, the net profit margin stood at 11 percent. Profits of the top mining companies The net profit margin (also known as profit margin, net margin, net profit ratio) is a measurement to describe the profitability of a company. It is calculated by dividing the net income by the total revenue (or net profit by sales). For 2023, it means that the top 40 mining companies kept 11 cents of profit out of every U.S. dollar they earned. The average net profit margin of the world’s top 40 mining companies stood at some seven percent in 2014, but decreased to negative seven percent in 2015, and then rebounded to 11 percent in 2023. These figures are a distinct decrease when compared to the years before. In 2023, the top 40 mining companies in the world generated a net profit of approximately 90 billion U.S. dollars.The global top 40 mining companies, which represent the vast majority of the industry, generated more than 840 billion U.S. dollars of revenue in 2023. In terms of quantity, these companies produce most of all coal (including thermal and metallurgical coal), iron ore, and bauxite.

Supermarkets and grocery store outcomes have been a tale of dealing with volatile prices at their purchase and sales points. The continued expansion of Aldi and Amazon has forced the two established industry giants, Woolworths and Coles, to remain price-competitive on both the physical store and online service fronts. To differentiate themselves from low-cost supermarkets, Coles and Woolworths have leant into attracting customers with convenient locations and expanded online shopping capabilities. These supermarket giants also rely on loyalty programs and promotions. Coles and Woolworths have displayed interest in data analytics, strengthening their relationships with analytics firms like Palantir to optimise their marketing and operational processes. The ACCC and Treasury have taken the lead on addressing supplier and customer concerns relating to deceptive discounting practices and supplier contract bargaining exploitation. Supermarket and grocer revenue rose significantly following the COVID-19 outbreak. Household expenditure shifted towards retail industries amid restrictions on many services industries, with this imbalance remaining as high costs limit eating out. A combination of panic buying, along with the suspension of many specials and promotions in supermarkets, boosted grocery turnover at the beginning of the period, spiking revenue for 2019-20. This high benchmark at the start of the period has resulted in an industry correction and an annualised revenue decline of 0.6% to $148.7 billion over the five years to 2024-25. However, stores have largely managed to pass on upstream costs to customers, steadying their profit margins while suppliers and consumers bear the brunt of inflation-driven costs. Revenue is estimated to climb by 0.2% in 2024-25, reflecting the price-driven industry growth more indicative of the overall revenue trend that was drowned out by the pandemic revenue spike and correction. Supermarkets and grocery stores are set to continue performing well with industry revenue slated to climb at an annualised 0.4% over the five years through 2029-30 to $142.8 billion. Population growth and stubborn inflationary pressures, despite rate hikes, are set to keep store prices inching upwards. The results of the Treasury and the ACCC's investigations will shine a light on new regulations and potential penalties in store for large supermarkets. Eventually, when inflationary pressures subside and consumer sentiment returns to a positive level, supermarkets and grocers will be well-positioned to take advantage of consumer appetite for value-added and premium goods. Strong growth in online sales is set to continue.

The industry has experienced significant changes over the past five years. The pandemic led to a significant decline in profitability in 2019-20 and 2021-22, driven by lower tourism numbers and limited visitor capacity. However, a resurgence in late 2021-22 and 2022-23 led to a swift recovery, with pent-up demand and strong household savings supporting increased revenue and expanding profit margins. However, the industry’s performance has been muted in 2023-24 and 2024-25, with a decline in revenue due to a slowed growth in demand, even though tourism numbers have continued to improve. Tightened household budgets have led to a decrease in discretionary spending on leisure and entertainment, causing smaller entertainment venues to struggle. Over the past five years, industry revenue is anticipated to have grown at an annualised 1.7%. Nevertheless, revenue is expected to remain stable at $2.5 billion in 2024-25. Improving profit margins have lured new entrants to the market, driving employment growth though wage costs per employee have fallen. Several new investments have also brought optimism to the industry, including Village Roadshow’s Warner Bros. Movie World investing $100.0 million in a new Wizard of Oz precinct and TEEG opening several new Timezone and Zone Bowling establishments. Despite the recent challenges, these investments and a potential rise in household discretionary incomes in late 2024-25 and 2025-26 indicate a promising outlook for the industry. Continual growth in international tourist numbers and easing financial pressures on domestic households will likely spur increased industry patronage over the medium term. While tourist number growth is forecast to slow, a continual steady influx will give momentum to the industry's profitability, particularly in popular destinations. Over the long run, significant changes in the industry's structure are unlikely. With high barriers to entry, especially in the amusement parks segment, players like Village Roadshow and TEEG will likely remain dominant for the foreseeable future. The potential for these major companies to make future acquisitions could further consolidate their market position. New entrants, mainly small enterprises, are likely to stimulate job growth and drive up average wages per employee. Overall, industry revenue is projected to grow at an annualised 2.3% through the end of 2029-30, reaching $2.8 billion.

Australia has a large supply of mineral, hydrocarbon and non-mineral reserves, which are often high quality and close to the Earth’s surface, enabling Australia’s Mining division to be globally price competitive. Fluctuations in commodity prices have fuelled revenue volatility over the past few years. Energy supply shocks, driven by the Russia-Ukraine conflict, have sent global energy prices soaring, boosting the value of coal and liquefied natural gas (LNG) exports over the past few years. However, softening energy prices in the two years through 2024-25 will constrain energy export revenue and weaken expansion. Iron ore prices have also fluctuated significantly in recent years. These prices climbed to a peak in 2020-21 because of supply chain disruptions in Brazil. However, a recent property market crisis in China has weakened steel demand, causing iron ore prices to sink and reach a two-year low in September 2024. The price bounced back in October 2024 amid optimism surrounding the Chinese economy and stimulus measures, but is forecast to drop in 2024-25 as recent trade tensions and the United States’ sweeping tariffs exacerbated this trend and pushed prices down. Division revenue is expected to have risen at an annualised 0.6% over the five years through 2024-25, to $437.3 billion. This includes an anticipated fall of 10.5% in 2024-25 as the values of coal, LNG and iron ore exports ease on the back of softening prices. Some miners have pivoted towards future-facing commodities like copper and lithium to align with energy transition trends, but oversupply and softening prices pose ongoing profitability challenges. Soaring operational costs are compounding these issues as labour shortages, rising input costs and sophisticated competition have eroded profit margins. While commodity prices like oil, gas and coal have retracted from recent highs, they remain above 2019-20 levels, offering some relief and counteracting profitability dips. Many mining companies have moved from completing expansion programs to rebalancing their portfolios and implementing cost-reduction initiatives, offsetting profitability slumps. Output across several key commodities like iron ore is set to climb as new mines and expansion projects come online. Despite this, a global supply glut will ease commodity prices, reducing division revenue. Revenue is forecast to decline at an annualised 3.1% over the five years through 2029-30, to $374.3 billion. Growing demand for critical minerals and commodities used in renewable infrastructure represents a growth opportunity for some areas of the Mining division. Consolidation trends will also accelerate over the coming years as larger miners undertake mergers and acquisitions.

Hotels and resorts in Australia faced unprecedented challenges during the pandemic. Australia's border closures resulted in collapsing occupancy rates, a drastic reduction in employment numbers and a sharp drop in revenue. However, government stimulus and easing restrictions in 2022 led to a quick resurgence in revenue and employment, driven by heightened travel demand and the ability to raise room tariffs. Major hotels and resorts focused on luxury tourism, capitalising on international travellers' preference for high-end accommodation. This expanded the luxury segment and contributed to the swift post-pandemic recovery. Although occupancy rates remain below pre-pandemic levels, a consistent rise in average daily rates has pushed up revenue over the past few years. Hotels and resorts heavily rely on domestic tourism, which has struggled in recent years because of the cost-of-living crisis. Despite this, luxury tourism from international visitors has increased, with large hotel chains investing in partnerships with boutique hotels to cater to this market. A strong rebound in travel demand post-pandemic has seen profitability improve over the past few years. Overall, revenue is expected to climb by an annualised 4.9% to $14.8 billion over the five years through 2024-25. This includes a slight increase of 3.2% in the current year. Over the next few years, the Hotels and Resorts industry is set to see a considerable shift. International visitor arrivals are set to reach record levels by 2026-27, providing growth prospects for hotels and resorts. Yet, changes in regulations, like visa restrictions and international student caps, could cast a shadow over this positive outlook. Occupancy rates are set to remain stable, facilitating plans for growth strategies and expansion. Domestic tourism will also see slow yet steady growth thanks to improved economic conditions and easing cost-of-living pressures. Still, demand growth rates are set to diminish compared to the past few years, causing businesses to resort to promotional strategies, which will negatively impact profit margins. The high cash rate is projected to slow hotel construction after a period of active expansion. Still, the number of hotels and resorts is poised to climb. Despite revenue growth, intensifying internal competition from growing establishment numbers has the potential to constrict profit margins. On the positive side, government regulations affecting short-term rental platforms could relieve external competitive pressures, providing hotels and resorts with a pricing advantage. Overall, revenue is projected to climb at an annualised 2.6% through 2029-30, to $16.9 billion.

The Advertising Agencies industry in Australia has experienced mixed performance over the past few years, driven by rapidly changing consumer preferences and fluctuations in economic conditions. Demand for traditional media, particularly print and broadcast advertising, has fallen significantly, while online and digital advertising has recorded strong growth, prompting sectorwide restructuring. Rising inflation and elevated interest rates weakened business confidence between 2021-22 and 2023-24, leading to temporary reductions in advertising budgets among many downstream clients and contributing to industrywide revenue falling at an annualised 0.2% from 2019-2020 to 2024-25. Revenue is projected to partially recover in 2024-25, growing 1.3% to reach $3.9 billion, supported by improvements in business confidence. Profit margins have expanded in recent years, driven by increased efficiencies. Agencies are increasingly using AI-driven advertising optimisation and digital billboard technologies to achieve higher returns on campaign budgets. Advertising agencies have pursued mergers and acquisitions to boost integrated service offerings, digital capabilities and competitive positions amid ongoing disruption from digital platforms. The December 2024 merger between Omnicom and Interpublic illustrates a trend towards greater market concentration and enhanced global competitiveness. Some businesses have begun intensifying competitive pressures on advertising agencies by adopting in-house advertising models, exemplified by Bunnings' March 2025 establishment of its internal advertising agency, Hammer Media. The ways advertising agencies implement strategies for clients to reach their audiences are changing. Mass media advertising's high costs and the fragmentation of consumer media viewing habits are prompting some clients to expand their below-the-line advertising, like targeted email, SMS and direct mail campaigns. New forms of media, alongside changing media usage trends, are also influencing advertising agencies' operating conditions. Advertising firms are responding to these trends by transforming their traditional advertising strategies. Most major and medium-size advertising agencies are developing or acquiring complementary public relations, market research and analytics, digital advertising, and web development businesses. Improving economic conditions, rising consumer sentiment and strengthening business confidence are expected to drive growth in advertising spending in the coming years. Digital and online advertising methods will continue outperforming traditional advertising segments. The rising adoption of AI will continue to reduce labour intensity, which will boost profit margins. Regulatory shifts, particularly tighter restrictions on gambling promotions, may require strategic adjustments for agencies targeting certain markets. Overall, industry revenue is forecast to expand at an annualised 1.7% through 2029-30, reaching $4.2 billion.

The Wireless Telecommunications Carriers industry has endured economic challenges over the past few years. Working-from-home trends and weakened population growth during the pandemic have reduced industrywide profitability and revenue. Carriers faced difficulties acquiring new customers because of reduced international visitors and workers relying on their wired at-home networks during movement restrictions. As pandemic restrictions eased in 2022-23, industry revenue started to rebound. Overall, revenue has dropped by an expected 3.1% to $22.7 billion over the five years through 2024-25. Digitisation has accelerated, with more consumers spending time online through various platforms for communication, entertainment, businesses and administrative work like online banking. Greater data use has supported industry growth. Major wireless telecommunications carriers have been expanding 5G networks to satisfy consumers with enhanced speed, capacity and network efficiency. This technological advancement stimulated industrywide growth and benefited carriers, gradually encouraging many consumers to migrate away from less efficient wired plans. More consumers have relied on online platforms like social media and video streaming services that use greater volumes of data. Despite growing data usage, revenue is sinking by an expected 1.7% in 2024-25 as heightened cost-of-living pressures are driving more consumers to choose wireless telecommunications plans based on prices. Industry profit diminished during the pandemic because of reduced business and household spending on wireless telecommunications services. Global supply chain disruptions increased purchase costs because of inflated prices for infrastructure inputs, exacerbating profitability trouble. Profit margins have recovered as pandemic restrictions eased, with solid demand boosting major telcos’ sales. IT and telecommunications adoption is projected to keep rising as more consumers are likely to develop a strong appetite for constant internet access. Revenue is forecast to climb at an annualised 1.2%, totalling $24.0 billion, through the end of 2029-30. A climb in real household disposable income may weaken recent heightened cost-of-living pressures, encouraging consumers to spend more on enhanced connectivity and mobile networks. Continuous technological advancements like artificial intelligence and the Internet of Things are set to raise revenue from businesses.

The Clothing Retailing industry is susceptible to consumer spending patterns, which is why the digital revolution and inflationary pressures have beset its performance over recent years. The pandemic forced most retailers to shut down temporarily, eroding instore sales and fast-tracking their transition into the digital space. Clothing retailers have continued to merge the physical and online sectors as part of their multichannel agendas, developing websites and mobile apps, accompanied by increased expenditure in digital marketing, to boost the number of customer touchpoints. This trend enabled retailers to capitalise on the pandemic-driven online shopping boom. Retailers benefited from higher profitability as pandemic restrictions eased, with revenge spending and soaring inflation boosting earnings. However, the cost-of-living crisis has led consumers to pare back their expenditure over the two years through 2024-25, restricting their outlay on non-essentials like clothes or prompting them to choose more cost-effective options online. Overall, revenue is expected to have grown at an annualised 2.6% over the five years through 2024-25 to $28.1 billion. This includes an anticipated 8.3% fall in 2024-25 as consumer pessimism compels shoppers to save more and spend less. Clothing retailers have faced fierce competition from online-only sellers, major international brands and department stores. At the same time, customer behaviour has trended towards a hybrid shopping process, as some shoppers have browsed clothing online from the comfort of their homes before making a purchase instore. The reverse is also true – some consumers try out apparel instore and then wait for sales online. Volatile consumer sentiment has encouraged some shoppers to reduce spending on discretionary items like clothing. Increased disposable income from government stimulus during the pandemic initially insulated against financial pressures. However, high inflation has since made consumers more frugal, heightening the industry's revenue volatility. Despite these negatives, an stronger Australian dollar is set to ease input costs over the past five years, translating into higher industry profitability. Looking ahead, improving consumer sentiment and disposable incomes will support higher clothing sales. However, competition from pure-play online retailers like Shein is set to intensify. In turn, retailers will need to develop robust multichannel retailing strategies and position themselves in niche markets to flourish in an increasingly competitive environment. Industry revenue is forecast to inch upwards at an annualised 0.3% over the five years through 2029-30 to $28.7 billion.

Stable growth in population and consumption expenditure have supported demand for packaging. Disruptions due to the pandemic and spiking material costs post-pandemic have created some volatility, but average packaging demand growth has remained steady overall. The industry temporarily benefited from supply chain logjams and soaring shipping during the pandemic, which boosted demand over the three years through 2021-22 as companies shifted from foreign packaging services providers to domestic firms. The industry normalised over the two years through 2024-25 with stagnant demand growth as companies returned to foreign packaging providers as shipping costs and delivery times rebounded closer to pre-pandemic levels. Overall, industry revenue is forecast to grow by an annualised 4.0% over the five years through 2024-25, to reach an estimated $3.6 billion, this includes a 0.1% decline in the current year. Rising input costs have pressured industry margins over the past five years. Manufacturing shortfalls, shipping delays and soaring world crude oil prices all contributed to a spike in domestic glass, paper and plastic prices over the two years through 2022-23. This drove a surge in industry revenue, as packaging service providers were able to pass on much of these costs through dynamic pricing mechanisms in existing contracts and negotiating higher fees in new contracts. However, the industry was not able to fully pass on these costs, leading to declining margins over the past five years. Steady growth in population and consumption expenditure is forecast to continue supporting growing demand for domestic packaging services over the next five years. Meanwhile, steady input costs will allow the industry to gradually improve margins, as providers steadily pass on any residual costs from the earlier spike in glass, paper and plastic prices. Many businesses are expected to exit the industry, but low margins and few opportunities to expand into new markets make the industry unattractive for new entrants and increase incentives for smaller firms with limited economies of scale to exit the industry. The remaining firms are projected to benefit from increased scale and continued investment in automated machinery, reducing average industry wage costs. Overall, industry revenue is projected to grow at an annualised 2.7% through the end of 2029-30, to an estimated $4.2 billion.

The marine equipment retailers’ fortunes have fluctuated over recent years. Pandemic restrictions spurred a renewed interest in recreational boating during the early years, as consumers traded international travel for holidays on the water. This surge in interest drove a sharp upswing in demand for marine equipment, from paddle crafts to powerboats. However, the boom also caused supply challenges, with manufacturing slowdowns and logistical delays affecting product availability. Sales slumped in the post-pandemic environment, with rising inflation and stronger interest rates leaving consumers with less money for big-ticket purchases. Overall industry revenue is expected to rise at an annualised 3.2% over the five years through 2024-25. This includes an estimated rise of 3.5% in the current year to $2.6 billion, owing to an anticipated improvement in interest rates and stronger discretionary income. Grey imports have been a persistent problem for local retailers. Minimal restrictions and a stronger Australian dollar have made grey imports a viable alternative for consumers in the market for marine equipment. Buyers have also benefited from competitive pricing, with the stronger Australian dollar helping to absorb an upswing in retailer purchase costs. Despite changing retail trade conditions, demand for both new and used marine equipment has enabled retailers to maintain product margins, leading to a small hike in profitability. Looking forwards, industry revenue is set to climb at an annualised 1.7% over the five years through 2029-30, to $2.8 billion. Economic recovery and stronger average weekly earnings will fuel an upswing in real household discretionary income, boosting the affordability of big-ticket items like marine equipment. Reduced working hours and more leisure time will also support continued interest in recreational boating. However, retailers will face ongoing challenges from grey imports, especially if the Australian dollar continues to appreciate. Mounting competition may, in turn, lead to market consolidation.

Demand for forestry services has been mixed in recent years due to the COVID-19 outbreak. Revenue has diminished as fewer new plantations have been established and native forest logging rates have fallen. The Forestry Support Services industry provides essential plantation, maintenance, and research services to the forestry sector. Ripples from the collapse of forest-managed investment scheme (MIS) plantations have continued to weigh on industry performance in 2023-24. Forest and logging demand has plummeted, with international trade for wood products tanking and domestic wood use collapsing alongside many construction companies. Rising economic activity in recent years has steadied the revenue decline to an expected average annual 2.3% over the five years to 2023-24 to reach an estimated $888.6 million. This drop includes an expected dip of 0.6% in 2023-24. Many industry providers have moved away from starting up new plantations and towards replanting and other services to strengthen their revenue generation.Supply chain disruptions have caused severe challenges in the construction sector, increasing prices and slowing activity. Many service providers specialise in unique service offerings and have capitalised on inflationary trends to bolster their profit margins from their low rates in 2019-20. Forestry support services are upstream from construction industries, as forestry and logging companies work to meet wood product demand. The limited number of new forests and plantations has constrained revenue. Various government initiatives and private investments aid the Forestry Support Services industry, including Forest & Wood Products Australia and state government assistance packages.The Forestry Support Services industry will face subdued growth in the coming years as demand for log harvesting ramps up alongside the need for new dwelling commencements. Government and private support will aid operators in navigating ongoing challenges and contribute to sustainable forestry practices while enlisting forestry services themselves to contribute to forestry research. Drone use and more advanced maintenance machinery will displace labour over the long term, easing a major expense for forestry support service providers. Revenue is forecast to recover, growing at an annualised 0.6% over the five years through 2028-29, to an estimated $915.6 million.

Laundry and dry-cleaning businesses have taken a hit in recent years as the COVID-19 pandemic has hurt the industry over the two years through 2020-21. Economic disruption and restrictions on movement, gatherings and travel have slashed demand from households and the hospitality sector. Working from home has enabled customers freedom of not having to dress up in ironed shirts and suits to go to the workplace, shrinking demand for dry-cleaning services. The popularity of synthetics and other fabrics that don't require dry cleaning has also impacted industry revenue. Revenue is expected to slump at an average of 3.4% annually over the five years through 2023-24, to $2.3 billion. This trend includes an estimated dip of 1.7% in 2023-24 owing to a push down in household discretionary income. Rising price competition and deteriorating economic conditions have constrained the industry's performance. Industry businesses have continued to contend with a shift in demand mix. Households have slowed, as changing consumer preferences regarding clothing and household textiles have reduced demand for dry-cleaning and carpet-cleaning services. Businesses in healthcare and hospitality have increasingly outsourced laundry services to cut costs and improve efficiencies, partly offsetting the downward trends. Overall declines in industry revenue have squeezed profit margins. The proliferation of on-demand services and smartphone apps has made it easier for customers to schedule and track their laundry and dry cleaning needs. Industry providers have increasingly striven to appeal to the modern, hectic lifestyle by offering their clients flexibility and ease of use. Industry demand conditions are poised to improve as economic conditions recover from high interest rates and inflation. Revenue is on track to rebound at an average of 2.3% over the five years through 2028-29, to $2.6 billion. Continued trends towards outsourcing are going to likely support the industry's growth. Consumer preferences are set to continue shifting away from products that require laundry and dry-cleaning services, holding back revenue growth. Consumer preferences are evolving, and they are becoming more environmentally conscious. Laundries and dry cleaners must limit their environmental impact by offering environmentally friendly cleaning solutions and utilising energy-efficient equipment.

The Motor Vehicle Parts Retailing has experienced growth over time, driven by rising disposable incomes, increased car ownership and strong demand for higher margin automotive accessories. In 2024-25, industry revenue is expected to reach $7.1 billion, reflecting modest 0.8% annualised growth over the past five years. This includes 0.6% growth anticipated in the current year. Major companies like Supercheap Auto, Repco and Bapcor are expanding their product offerings to include higher margin items like in-car technology, off-road enhancements and performance parts, which command higher mark-ups and require less customer servicing. Profit margins have widened due to rising disposable income among higher earners and the adoption of online platforms, reducing in-person staffing needs. Retailers that’ve invested in efficient supply chain management and digital platforms have gained a competitive edge, reducing costs and improving service delivery, particularly as consumers increasingly expect convenience and faster delivery times. However, the industry faced challenges in 2022-23 and 2023-24, amid subdued wage growth, high interest rates and ongoing cost-of-living pressures. These factors have dampened household purchasing power and weakened consumer sentiment, limiting demand. Despite this, the industry remains resilient, with strong demand for essential automotive repair parts and a growing preference for vehicle upgrades. Increasing consumer interest in new and branded parts, coupled with a post-pandemic surge in car ownership, has bolstered sales, especially in urban areas where consumers are more likely to invest in premium automotive accessories. Looking forward, industry revenue is projected to reach $7.8 billion in 2029-30, growing at an annualised 1.7%. Larger retailers with expansive product catalogues and strong online platforms will continue to dominate the market, benefiting from economies of scale and the ability to offer a broad range of products to meet shifting consumer preferences. Greater safety awareness and the expansion of stringent regulations will continue fuelling demand for safety-related products.

The Electrical and Lighting Stores industry has been experiencing competitive conditions. Volatility in consumer sentiment and real household discretionary income has combined with increasing competition from external competitors to drive industry revenue falls in recent years. While demand from department stores has dropped, growing competition from hardware and building supply stores has been cutting into retailers’ customer base. Online shopping trends have also fuelled online-only retailers’ success, as their convenience has encouraged many customers to shop online instead. Stores that focus on high-value, purposeful products and strong growth from the industry's major players have partly offset these trends. Overall, industry revenue is expected to dip at an annualised 2.6% to $2.6 billion over the five years through 2024-25. This trend includes a drop of 3.7% anticipated in the current year, since reduced demand from house construction has limited the number of people buying products like power points and light fittings.Retailers like Big W, Myer, Bunnings and IKEA stock a range of electrical and lighting products, including indoor and outdoor lights, power points, light switches, batteries and torches. These large retail chains can use their size to obtain significant economies of scale, allowing them to provide products to the market at low prices. This has been especially attractive to price-conscious consumers amid the cost-of-living crisis. Additionally, as Australia is moving towards a sustainable economy, state governments have launched rebates or supports to encourage businesses and consumers to install energy-efficient electrical and lighting products. These proactive public policies have attracted new enterprises to the industry, especially those specialising in sustainable products. Electrical and lighting stores have increasingly focused on improving quality and customer service to compete with low-cost substitutes and this trend is on track to continue over the coming years. A forecast improvement in discretionary income growth and house construction activity will support the industry in rebounding over the coming years. As well as focusing on niche products, retailers are set to improve cost efficiencies, which is projected to improve the industry’s average profit margin in the coming years. Overall, revenue is forecast to improve at an annualised 1.0% to $2.7 billion through the end of 2029-30.

The Horse Farming industry has grown in recent years, driven by climbing demand for thoroughbred horses, boosting sales and the average price paid per horse and service. However, the onset of the COVID-19 pandemic limited export demand and constrained racehorse trading and servicing operations. In addition, declining harness racing activity has reduced demand for standardbred horses over the past several years. Weaker demand for standardbred and other horses has recently hampered the industry’s performance. Overall, industry-wide revenue has been growing at an annualised 1.3% over the past five years and is expected to total $1.6 billion in 2023-24, when revenue will rise by an estimated 1.0%. Horse farmers have faced varying trading conditions in recent years. Australia's growing reputation for producing high-quality thoroughbred racehorses has fuelled increased domestic and international demand for Australian stud farms. This trend has allowed players like Godolphin and Coolmore Stud to expand in the industry. Conversely, operators that farm standardbred and other horses have faced harsh conditions. These operators are largely owner-occupiers, and declining demand for these breeds of horses has increased competition among standardbred and other horse farmers. In addition, players have had to deal with volatile wheat feed and coarse grain prices, which has put pressure on many small farms. The industry is set to continue expanding over the coming years. Australia's reputation for producing high-quality horses for racing will continue to support strong demand from domestic and overseas customers. As a result, export revenue is poised to climb over the coming years. Rising overseas and domestic demand is set to boost industry-wide profit margins. In addition, a projected fall in the domestic price of wheat feed will aid the rise in industry profitability. Industry revenue is forecast to increase at an annualised 1.6% over the five years through 2028-29, to total $1.7 billion.

Divergent trends in the building and infrastructure sectors have constrained the Construction division’s performance through the end of 2024-25, with revenue expected to drop by an annualised 1.2% to $521.2 billion. Rollercoaster-like trends in the residential building market and pandemic-related supply chain disruptions have constrained the performance of homebuilders and many special construction service industries. Still, favourable trends in non-residential building construction and non-building infrastructure construction generate buoyant conditions for some Construction division segments. New house construction surged to a record peak in 2021-22, supported by the Federal Government’s HomeBuilder stimulus and record-low interest rates. Still, new house construction has plunged in recent years following the hike in mortgage interest rates as the RBA seeks to quell inflation. Many small homebuilders have hit the wall in response to intense competition, escalating input costs and plunging profit margins. Conversely, the construction of multi-unit apartments and townhouses has gradually recovered from the deep trough in 2021-22 as investors return to address the severe rental shortages in the face of mounting population pressures. Divisional revenue contracted with the 2023-24 housing slump and is expected to sink 3.2% in 2024-25. Some large prime and specialist trade contractors have derived substantial stimulus from constructing landmark road and rail developments, including the WestConnex motorway in Sydney and the Cross River Rail in Brisbane. Similarly, conditions have been strong for contractors working on non-residential building projects, particularly accelerated growth in the construction of industrial warehouses and distribution facilities. Favourable trends in the residential building market are forecast to underpin modest growth in Construction division revenue at an annualised 1.2% over the five years through 2029-30 to $554.0 billion. Many prime building and special construction contractors will benefit from an upswing in demand for constructing multi-unit dwellings and, to a lesser extent, single-unit housing and home renovations. The housing market will benefit from the initiatives under the National Housing Accord. Construction activity will remain stable in the non-residential market. At the same time, the principal constraint on the Construction division will come from the staged completion of several landmark road and rail projects.

Population growth has expanded the potential pool of patients for ambulance services in recent years. The ageing population has also driven demand for ambulance services over the period, as older people are more susceptible to incidents that require ambulance responses. Modest growth in household disposable income and a rise in private health insurance membership have also supported the ability of the population to pay ambulance services user charges. The number of ambulance services claimed under private health insurance has trended upwards in recent years, as has the average fee per service, adding to revenue growth. Revenue is expected to rise at an annualised 4.1% over the five years to 2024-25, to an estimated $7.0 billion, including estimated growth of 3.5% in 2024-25. Despite recent investments in additional capacity, ambulance ramping issues will continue to hinder the industry in 2024-25 as Australia's public hospital system remains close to breaking point. Revenue is forecast to climb by an annualised 3.4% over the five years to 2029-30 to reach an estimated $8.3 billion. Australia's population will continue to expand over the period, as will the number of high-risk older patients as the population ages. As state governments continue to push for ambulance service providers to have enhanced responsibilities regarding pre-hospital treatment to reduce unnecessary hospital triage, new models of care will be adopted. There will also be a greater reliance on alternative care pathways - and on new technologies like virtual emergency departments- to reduce the number of unnecessary hospital trips made by ambulance service providers. At the same time, the private sector will gradually assume a greater role in providing non-emergency services. Despite the introduction of new technologies and innovative services, profit margins will remain low in line with the nature of ambulance services.