ibisworld industry report x0021 charities & not-for-profit...
Post on 27-Mar-2020
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TRANSCRIPT
2 About this Industry2 Industry Definition
2 Main Activities
2 Similar Industries
2 Additional Resources
4 Industry at a Glance
5 Industry Performance5 Executive Summary
5 Key External Drivers
6 Current Performance
9 Industry Outlook
12 Industry Life Cycle
14 Products & Markets14 Supply Chain
14 Products & Services
15 Demand Determinants
16 Major Markets
17 International Trade
18 Business Locations
20 Competitive Landscape20 Market Share Concentration
20 Key Success Factors
20 Cost Structure Benchmarks
22 Basis of Competition
22 Barriers to Entry
23 Industry Globalisation
24 Major Companies
27 Operating Conditions27 Capital Intensity
28 Technology & Systems
28 Revenue Volatility
29 Regulation & Policy
31 Industry Assistance
32 Key Statistics32 Industry Data
32 Annual Change
32 Key Ratios
33 Jargon & Glossary
IBISWorld Industry Report X0021Charities & Not-for-Profit Organisations in AustraliaMarch 2012 Craig Shulman
Bigger and better: Organisations in the
industry are expanding their service offerings
www.ibisworld.com.au | (03) 9655 3881 | info@ibisworld.com
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 2
This industry consists of organisations
that exist for reasons other than
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The primary activities of this industry are
Fundraising
Advocacy
Operating health, educational and cultural programs
Industry Definition
Main Activities
Similar Industries
The major products and services in this industry are
Business and professional associations and unions
Culture and recreation
Education and research
Environment, development, housing, employment, law, philanthropic
Hospitals and health
Religion
Social services
About this Industry
N EducationEstablishments in this division provide education services from preschool through to postgraduate courses, with private and public options.
O8729 Welfare Services and Fundraising in AustraliaOrganisations in this industry provide welfare services to the disadvantaged and fundraising activities aimed at supplementing government funding for these activities.
P9319 Sport Organisations and Other Sports Services in AustraliaEstablishments in this industry include sporting clubs facilitating or participating in sporting activities, or provide services to sporting activities. Sports coaching services are also included.
Q9610 Religious Organisations and Services in AustraliaOrganisations in this industry are operated for religious worship or for the promotion of religious activities, including churches, temples and monasteries.
Q9621 Industry Associations in AustraliaCompanies in this industry promote the business and professional interests of their members by conducting research and providing education services.
O8600 Health Services in AustraliaEstablishments in this subdivision supply health services to the public either directly or via proxies.
For additional information on this industry
www.ausaid.gov.au AusAID
Additional Resources
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 3
About this Industry
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www.fia.org.au Fundraising Institute Australia
www.nfpn.com.au Not-For-Profit Network
www.philanthropy.org.au Philanthropy Australia
www.probonoaustralia.com.au Pro Bono Australia
www.thirdsectormagazine.com.au Third Sector
Additional Resourcescontinued
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 4
Market ShareThere are no
PDMRU�SOD\HUV�LQ�this industry
Key External DriversNational unemployment ratePopulation aged 55 or olderState funding for primary and secondary educationFederal funding for the arts and related activitiesState funding for health servicesNatural disasters
Key Statistics Snapshot
Industry at a GlanceCharities & Not-for-Profit Organisations in 2011-12
Revenue
$105.0bnEnterprises
44,800Exports
$6.1bnBusinesses
44,800
Annual Growth 12-17
4.0%Annual Growth 07-12
3.5%
Industry Structure Life Cycle Stage Growth
Revenue Volatility Medium
Capital Intensity Low
Industry Assistance High
Concentration Level Low
Regulation Level Medium
Technology Change Medium
Barriers to Entry High
Industry Globalisation Low
Competition Level Medium
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32
p. 24
p. 5
SOURCE: WWW.IBISWORLD.COM.AU
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 5
Key External Drivers National unemployment rate+RXVHKROGV�ZKHUH�DGXOWV�DUH�XQHPSOR\HG�DUH�PRUH�OLNHO\�WR�XVH�ZHOIDUH�DQG�FKDULW\�VHUYLFHV��SDUWLFXODUO\�ZKHUH�XQHPSOR\PHQW�KDV�EHHQ�RYHU�WKH�ORQJ�WHUP��/RQJ�WHUP�XQHPSOR\PHQW�LV�WKH�PRVW�FORVHO\�FRUUHODWHG�VRFLDO�YDULDEOH�WR�GHPDQG�IRU�ZHOIDUH��DV�LW�DOVR�FRUUHODWHV�FORVHO\�WR�OHYHOV�RI�KRPHOHVVQHVV�DQG�PHQWDO�LOOQHVV�
Population aged 55 or older)UDLO�ROGHU�SHRSOH�DUH�PRUH�OLNHO\�WR�UHTXLUH�DVVLVWDQFH�LQ�WKH�KRPH��GHOLYHUHG�PHDOV�DQG�KHDOWK�FDUH�
State funding for primary and secondary education1RW�IRU�SUR¿W�HQWLWLHV�SURYLGLQJ�HGXFDWLRQ�VHUYLFHV�DUH�SDUWLDOO\�UHOLDQW�RQ�SXEOLF�IXQGLQJ�LQ�RUGHU�WR�¿OO�WKHLU�FODVVURRPV��$Q�LQFUHDVH�LQ�JRYHUQPHQW�IXQGLQJ�ZRXOG�DOORZ�H[SDQVLRQ�RI�VHUYLFHV�
Federal funding for the arts and related activities)HGHUDO�IXQGLQJ�LV�D�PDMRU�VRXUFH�RI�UHVRXUFHV�IRU�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�HQJDJHG�LQ�WKH�DUWV��Increased government expenditure in
Executive Summary
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to the huge array of products and
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grassroots fundraising and community
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Industry PerformanceExecutive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage
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Industry Performance
Effect of the financial crisis
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Current Performance
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Key External Driverscontinued
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Industry Performance
Effect of the financial crisiscontinued
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Industry Performance
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WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 9
Industry Performance
Industry Outlook
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Industry Performance
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Expanding lines of work
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WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 11
Industry Performance
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Quality GrowthHigh growth in economic importance; weaker companies close down; developed technology and markets
Time WastersHobby Industries
MaturityCompany consolidation;level of economic importance stable
Shake-out
Shake-out
Quantity GrowthMany new companies; minor growth in economic importance; substantial technology change
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Revenue grows faster than the economyMany new companies enter the marketRapid technology & process changeGrowing customer acceptance of productRapid introduction of products & brands
Education
Health Services
Welfare Services and Fundraising
Sport Organisations and Other Sports Services
Religious Organisations and Services
Charities & Not-for-Profi t Organisations
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 13
Industry Performance
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This industry is Growing
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 14
Products & Services ,Q�D�WHFKQLFDO�VHQVH��FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�LQ�$XVWUDOLD�DUJXDEO\�FRQVWLWXWH�DQ�RSHUDWLRQDO�PHWKRG�PRUH�WKDQ�DQ�LQGXVWU\��7KH�W\SHV�RI�SURGXFWV�and services offered by organisations in
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UHOLJLRQ��EXVLQHVV�DQG�SURIHVVLRQDO�DVVRFLDWLRQV�DQG�XQLRQV��DQG�organisations that provide
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KEY BUYING INDUSTRIESM Government Administration and Defence
Charities and not-for-profit organisations may supply products and services to various levels of government, depending on their line of work.
Z9901 Consumers in Australia Private consumers purchase services provided by not-for-profit and charitable organisations, such as education, healthcare and cultural activities. In many instances, these services are provided to needy individuals free of charge.
KEY SELLING INDUSTRIESM Government Administration and Defence
Government grants and funding are a significant source of resources for charities and not-for-profit organisations.
Z Consumers Private donors give their money or volunteer time to charities and not-for-profit organisations.
Products & MarketsSupply Chain | Products & Services | Demand Determinants Major Markets | International Trade | Business Locations
Supply Chain
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 15
Products & Markets
DemandDeterminants
The industry provides services that are
RIWHQ�FRPSOHPHQWDU\�WR�ORFDO��VWDWH�DQG�IHGHUDO�JRYHUQPHQW��$V�D�UHVXOW��SUHYDLOLQJ�JRYHUQPHQW�SROLF\�DQG�IXQGLQJ�OHYHOV�LQ�any given year represent a big factor in
GHWHUPLQLQJ�LQGXVWU\�GHPDQG�,Q�DGGLWLRQ�WR�WKH�VFDOH�RI�WKH�
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versions of more-expensive services
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Unemployment crucial7KH�OHYHO�RI�GLUHFW�JRYHUQPHQW�LQFRPH�DQG�RWKHU�DVVLVWDQFH�SURYLGHG�WR�ORZ�LQFRPH�RU�GLVDGYDQWDJHG�KRXVHKROGV��H�J��XQHPSOR\PHQW��DJHG�SHQVLRQ��IDPLO\��SDUHQWDO��FKLOG�FDUH��GLVDELOLW\�DQG�GLVDELOLW\�FDUHU�EHQH¿W�SD\PHQWV�DQG�WD[�H[SHQGLWXUHV��FDQ�UHGXFH�WKH�QHHG�DPRQJ�VRPH�SHRSOH�IRU�WKLV�LQGXVWU\¶V�VHUYLFHV�+RXVHKROGV�ZLWK�ORZ�LQFRPHV�DUH�
PRUH�OLNHO\�WR�XVH�PRVW�ZHOIDUH�DQG�FRPPXQLW\�KHDOWK�VHUYLFHV��ZKLOH�KRXVHKROGV�ZLWK�KLJKHU�OHYHOV�RI�LQFRPH�DUH�PRUH�OLNHO\�WR�GRQDWH�FDVK��JRRGV�DQG�ODERXU�WR�ZHOIDUH�RUJDQLVDWLRQV��+RZHYHU��GRQDWLRQV�IURP�ZHDOWKLHU�KRXVHKROGV�WHQG�WR�EH�GLVWULEXWHG�DPRQJ�D�YDULHW\�RI�FDXVHV��LQFOXGLQJ�LQWHUQDWLRQDO�RQHV��PHDQLQJ�WKDW�DQ\�LQFUHDVH�LQ�LQFRPH�DQG�ZHDOWK�GLVSDULW\�LQ�$XVWUDOLD�LV�OLNHO\�WR�increase demand for industry services
DQG�SODFH�JUHDWHU�VWUDLQ�RQ�WKH�DELOLW\�WR�GHOLYHU�WKRVH�VHUYLFHV�7KH�LQFLGHQFH�RI�VLQJOH�SDUHQWV��
IDPLO\�EUHDNGRZQ��GRPHVWLF�YLROHQFH�DQG�UHVLGHQWLDO�SURSHUW\�HYLFWLRQ�DIIHFWV�
Products & Servicescontinued
VHUYLFHV��'XH�WR�WKH�XQXVXDOO\�EURDG�DUUD\�RI�LQGXVWU\�DFWLYLWLHV��WKH�remaining components of the industry’s
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VHJPHQWDWLRQ��([DPSOHV�RI�RWKHU�DFWLYLWLHV�DQG�VHUYLFHV�XQGHUWDNHQ�E\�WKH�LQGXVWU\�LQFOXGH�FRRSHUDWLYH�VFKHPHV��PDQXIDFWXULQJ��ZKROHVDOLQJ��UHWDLOLQJ�DQG�RSHUDWLQJ�FHPHWHULHV�
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 16
Products & Markets
Major Markets 7KH�PDUNHWV�IRU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�DUH�DOO�GH¿QHG�E\�LQWHUHVWV�WKDW�DUH�VHHQ�DV�FRPPHUFLDOO\�XQYLDEOH�DQG�ODFN�LQWHUHVW�IURP�JRYHUQPHQW�ERGLHV�EXW�QRQHWKHOHVV�LV�VHHQ�E\�D�VLJQL¿FDQW�DPRXQW�RI�SHRSOH�DV�DQ�LPSRUWDQW�SURGXFW�RU�VHUYLFH��$V�D�UHVXOW��WKH�LQGXVWU\�LV�GH¿QHG�PRUH�E\�LWV�EXVLQHVV�PRGHO�UDWKHU�WKDQ�LWV�WDUJHW�PDUNHW��DQG�WKXV�WKH�PDUNHW�LV�ZLGH�UDQJLQJ�LQ�QDWXUH�7KH�LQGXVWU\��KRZHYHU��LV�PRVW�RIWHQ�
DVVRFLDWHG�ZLWK�DVVLVWLQJ�WKRVH�GRZQWURGGHQ�LQ�WKH�FRPPXQLW\��,QLWLDWLYHV�WRZDUGV�WKHVH�LQWHUHVWV�PDNH�XS�������RI�DOO�LQGXVWU\�UHYHQXH�VSHQW��%UHDNLQJ�GRZQ�WKLV�VHFWRU�IXUWKHU��SHRSOH�VXIIHULQJ�IURP�SK\VLFDO�GLVDGYDQWDJHV�GUDZV�������RI�WRWDO�LQGXVWU\�UHYHQXH��7KHVH�SHRSOH�LQFOXGH�WKRVH�ZKR�UHTXLUH�DVVLVWDQFH�ZLWK�D�GLVDELOLW\�RU�PHQWDO�KHDOWK��DQG�VHUYLFHV�IRU�DJHG�DQG�HOGHUO\��3HRSOH�XQVDWLV¿HG�ZLWK�OLYLQJ�VWDQGDUG�VLWXDWLRQV�GUDZ�������RI�LQGXVWU\�UHYHQXH��DOORFDWLQJ�PRQH\�WRZDUGV�KRPHOHVVQHVV��HFRQRPLF�GHYHORSPHQW�LQLWLDWLYHV�RXWVLGH�RI�$XVWUDOLD��IRUHLJQ�DLG���DQG�MRE�WUDLQLQJ�SURJUDPV��3URJUDPV�IRFXVHG�WRZDUGV�LQGLYLGXDOV�GHDOLQJ�
ZLWK�WUDXPD�PDNH�XS�������RI�LQGXVWU\�UHYHQXH��7KHPHV�LQ�WKLV�DUHD�LQFOXGH�GRPHVWLF�YLROHQFH�DQG�VH[XDO�DVVDXOW�DVVLVWDQFH��DQG�DGGLFWLRQ��)LQDQFLDOO\�GLVDGYDQWDJHG�LQGLYLGXDOV�GUDZ�������RI�LQGXVWU\�UHYHQXH��SURYLGLQJ�PDQ\�VHUYLFHV�LQFOXGLQJ�VFKRODUVKLSV��VXEVLGLVHG�OHJDO�VHUYLFHV��DQG�¿QDQFLDO�VXSSRUW�VHUYLFHV�2XWVLGH�RI�WKHVH�FDXVHV��PRVW�RWKHU�
programs and organisations in the
industry target niche interests that are
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DemandDeterminantscontinued
GHPDQG�IRU�FRXQVHOOLQJ�VHUYLFHV��SXEOLF�housing and other crisis assistance
VHUYLFHV��,Q�DGGLWLRQ��WKH�H[WHQW�WR�ZKLFK�FDUHUV�RI�GLVDEOHG�SHRSOH�XVH�IRUPDO�UHVSLWH�DFFRPPRGDWLRQ�VHUYLFHV��ZKLFK�is affected by the cost of these services
�DIIHFWHG�E\�WKH�OHYHO�RI�JRYHUQPHQW�IXQGLQJ��LV�RI�FULWLFDO�LPSRUWDQFH��DQG�SHRSOH�DJHG�RYHU����\HDUV�DUH�PRUH�OLNHO\�WR�EH�GLVDEOHG�UHODWLYH�WR�\RXQJHU�SHRSOH��,Q�KRXVH�FDUHUV�RIWHQ�ZRUN�RQ�D�SDUW�WLPH�RU�YROXQWDU\�EDVLV�DQG�UHO\�RQ�RWKHU�LQGXVWU\�VHUYLFHV��VXFK�DV�PHDOV�RQ�ZKHHOV�
Voluntary work and government aid7KH�DYDLODELOLW\�DQG�ZLOOLQJQHVV�RI�IULHQGV�DQG�IDPLO\�WR�DVVLVW�WKRVH�ZKR�VXIIHU�PLVIRUWXQH�LV�RI�FULWLFDO�LPSRUWDQFH�WR�WKH�LQGXVWU\��0DQ\�GLVDEOHG�RU�PHQWDOO\�LOO�SDWLHQWV¶�SULPDU\�FDUHUV�DUH�VSRXVHV��
SDUHQWV�RU�FKLOGUHQ��DQG�WKH�OHYHO�RI�JRYHUQPHQW�VXSSRUW�IRU�LQIRUPDO�FDUHUV�KDV�D�PDUNHG�LPSDFW�RQ�WKH�DELOLW\�RI�WKHVH�SHRSOH�WR�IHDVLEO\�SHUIRUP�VXFK�D�IXQFWLRQ��DQG�FRQVHTXHQWO\�RQ�WKH�OHYHO�RI�GHPDQG�IRU�H[WHUQDO�KHDOWK��ZHOIDUH��KRXVLQJ�DQG�VRFLDO�DVVLVWDQFH��7KH�FRVW�RI�DWWDLQLQJ�FDUH�IRU�IULHQGV�RU�IDPLO\�LV�FULWLFDO�LQ�HVWDEOLVKLQJ�WKH�OHYHO�RI�GHPDQG�IRU�LQGXVWU\�VHUYLFHV��+RZHYHU��FRVW�LV�FORVHO\�OLQNHG�WR�WKH�OHYHO�RI�JRYHUQPHQW�DVVLVWDQFH��ZKLFK�RIWHQ�LQFUHDVHV�LI�WKH�GHPDQG�IRU�VHUYLFHV�JRHV�XS�
+RXVHKROGV�ZLWK�ORZ�LQFRPHV�DUH�PRUH�OLNHO\�WR�XVH�PRVW�ZHOIDUH�DQG�FRPPXQLW\�KHDOWK�VHUYLFHV
Social trends in Australia relating to Charities & NPOs, 2010-11Activity Percentage of Population
Used health services 80Religion affi liation 65Cultural venue use 41Welfare service use 29Sports club member 26School attendance 15.5TAFE attendance 8trade union member 8Attending university 4
SOURCE: IBISWORLD
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 17
Products & Markets
International Trade With the majority of organisations in the
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SDUW�RI�RYHUDOO�LQGXVWU\�UHYHQXH��'XH�WR�$XVWUDOLD�EHLQJ�D�ZHDOWK\�FRXQWU\�ZLWK�VWURQJ�GRPHVWLF�LQVWLWXWLRQV��WKH�FRXQWU\�GRHV�QRW�LPSRUW�DQ\�PHDQLQJIXO�DPRXQW�RI�DLG�RU�QRW�IRU�SUR¿W�VHUYLFHV�
What is important to note is that the
$XVWUDOLDQ�JRYHUQPHQW�KDV�FKRVHQ�WR�increase its foreign aid commitments to
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Major Marketscontinued
IUDPHZRUN�VLQFH�WKH�JRDOV�RI�WKH�programs and organisations are
concerned about achieving non-
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IRFXVHG�WRZDUGV�VFLHQWL¿F�SURJUHVV�PDNH�XS������RI�LQGXVWU\�UHYHQXH�,Q�WHUPV�RI�XVDJH��VHFWRUV�LQ�WKH�
industry that see the most activity are
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Level & Trend Exports in the industry are Low and Increasing
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 18
Products & Markets
SOURCE: WWW.IBISWORLD.COM.AU
TAS2.5
WA11.1
QLD21.9
VIC22.3
NSW30.9
NT2.0
SA7.6
ACT1.7
Establishments (%)
Cold Zone (<10) <25 <50 Hot Zone (<100) Not applicable
Business Locations 2011-12
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 19
Products & Markets
Business Locations $V�DQ�HPSOR\HU�RI�RQH�PLOOLRQ�$XVWUDOLDQ�ZRUNHUV�LQ�D�ZLGH�UDQJH�RI�¿HOGV��WKH�geographic distribution of revenue for the
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ODUJHVW�VWDWH�LQ�WHUPV�RI�SRSXODWLRQ�DQG�HFRQRPLF�RXWSXW��DQG�WKHUH�DUH�VLJQL¿FDQW�QXPEHUV�RI�ODUJH�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�KHDGTXDUWHUHG�LQ�6\GQH\��+RVSLWDO��KHDOWK��FXOWXUDO�DQG�HGXFDWLRQDO�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�DOO�KDYH�D�PDMRU�SUHVHQFH�LQ�1HZ�6RXWK�:DOHV�SURSRUWLRQDO�WR�SRSXODWLRQ��9LFWRULD�FDQ�EH�VXPPDULVHG�LQ�PXFK�WKH�VDPH�ZD\��ZLWK�LWV�KLJK�SRSXODWLRQ�GHQVLW\�DQG�IXOO�EUHDGWK�RI�VHUYLFHV�DWWUDFWLQJ�ODUJH�VFDOH�LQYROYHPHQW��RIWHQ�RQ�ODUJH�JRYHUQPHQW�FRQWUDFWV�6WDWHV�ZLWK�ORZ�SRSXODWLRQ�GHQVLWLHV�
and remote areas attract charities and
QRW�IRU�SUR¿W�RUJDQLVDWLRQV�IRU�VRPHZKDW�GLIIHUHQW�UHDVRQV��/RZ�RU�VFDWWHUHG�SRSXODWLRQV�PDNH�VHUYLFH�GHOLYHU\�OHVV�HI¿FLHQW�DQG�RIWHQ�QRW�FRPPHUFLDOO\�YLDEOH�DW�WKH�VWDQGDUGV�WKDW�SHRSOH�PD\�EH�XVHG�WR�LQ�ODUJH�FDSLWDO�FLWLHV��7KH�LQGXVWU\¶V�RUJDQLVDWLRQV�DUH�PRUH�OLNHO\�WR�EH�
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WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 20
Cost Structure Benchmarks
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Key Success Factors Ability to attract local support/patronage$�ODUJH�QXPEHU�RI�RUJDQLVDWLRQV�in this industry are community-
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Ability to effectively manage risk5HYHQXH�VWUHDPV�IRU�PDQ\�FKDULWLHV�FDQ�EH�YRODWLOH��DQG�GHSHQG�RQ�HFRQRPLF�FRQGLWLRQV�RU�RQH�RII�HYHQWV��0DQ\�ODUJHU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�VHW�DVLGH�FDVK�reserves or other investments to reduce
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Optimum capacity utilisation&KDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�often operate on tight budgets and use
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Ability to raise revenue from additional sources,Q�DGGLWLRQ�WR�WUDGLWLRQDO�IRUPV�RI�fundraising and revenue from service
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Market Share Concentration
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Because organisations in the
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Competitive LandscapeMarket Share Concentration | Key Success Factors | Cost Structure Benchmarks Basis of Competition | Barriers to Entry | Industry Globalisation
Level Concentration in this industry is Low
IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 21
Competitive Landscape
Cost Structure Benchmarkscontinued
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PDMRU�UHFLSLHQWV�RI�JUDQWV��PDQ\�RI�WKHP�WKHPVHOYHV�DOORFDWH�JUDQWV�DQG�RWKHU�SD\PHQWV��7KLV�FDQ�UHODWH�WR�VXEFRQWUDFWRUV�DQG�VPDOOHU�LQGXVWU\�SDUWLFLSDQWV�ZKR�XQGHUWDNH�ZRUN�IRU�ODUJHU�RQHV��'HSHQGLQJ�RQ�DQ�RUJDQLVDWLRQ¶V�OLQH�RI�ZRUN�LQ�WKH�LQGXVWU\��SXUFKDVH�H[SHQVHV�FDQ�LQFOXGH�PHGLFDO�VXSSOLHV��HGXFDWLRQDO�PDWHULDOV��IRRG��RU�HTXLSPHQW�KLUH�DQG�SXUFKDVH�WR�FRQGXFW�FXOWXUDO�RU�VSRUWLQJ�HYHQWV�
'HSUHFLDWLRQ�DQG�DPRUWLVDWLRQ�H[SHQVHV�DFFRXQW�IRU�MXVW�XQGHU������RI�LQGXVWU\�LQFRPH��'XULQJ����������RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\�XQGHUWRRN�DQ�HVWLPDWHG������ELOOLRQ�LQ�QHZ�FDSLWDO�H[SHQGLWXUH�LQFOXGLQJ�ODQG��ZLWK�VXUSOXVHV�IURP�FXUUHQW�RSHUDWLRQV�EHLQJ�WKH�PDLQ�VRXUFH�RI�IXQGLQJ��,W�LV�FRPPRQ�IRU�VPDOOHU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�WR�EH�SURYLGHG�ZLWK�IUHH�RU�QRPLQDOO\�H[SHQVLYH�HTXLSPHQW�DQG�IDFLOLWLHV�E\�EHQHIDFWRUV�RU�SXEOLF�ERGLHV��UHGXFLQJ�GHSUHFLDWLRQ�DQG�UHQWDO�FRVWV�EHORZ�QRUPDO�FRPPHUFLDO�OHYHOV�IRU�HTXLYDOHQW�RSHUDWLRQV��2WKHU�H[SHQVHV�LQFXUUHG�E\�RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\�LQFOXGH�VWDQGDUG�DGPLQLVWUDWLYH�FRVWV��WUDLQLQJ�DQG�UHFUXLWPHQW�H[SHQVHV�
Sector vs. Industry Costs
■ Profi t■ Wages■ Purchases■ Depreciation■ Utilities■ Rent■ Other
Average costs of all industries in
sector (2011-12)Industry costs
(2011-12)
0
20
40
60
Perc
enta
ge o
f rev
enue
80
100 6.40
26.6
3.8 2.23.5
41.2
16.2
24.6
4.0 3.34.3
16.8
47.0
SOURCE: WWW.IBISWORLD.COM.AU
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 22
Competitive Landscape
Barriers to Entry (QWHULQJ�WKH�LQGXVWU\�PD\�VHHP�HDV\�HQRXJK��SDUWLFXODUO\�RQ�D�VPDOO�VFDOH�WKD�GRHV�QRW�UHTXLUH�D�VLJQL¿FDQW�LQFRPH�VWUHDP��6WDUW�XS�FRVWV�FDQ�EH�QHJOLJLEOH�IRU�FRPPXQLW\�EDVHG�VHUYLFH�SURYLGHUV��DQG�WKHUH�LV�WKH�WKHRUHWLFDO�FDSDFLW\�WR�WDS�LQWR�D�SRRO�RI�YROXQWHHU�ODERXU�WR�PLQLPLVH�H[SHQVHV��+RZHYHU��LW�LV�QRW�TXLWH�VR�VLPSOH�IRU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�WKDW�VHHN�WR�RSHUDWH�RQ�D�ODUJHU�VFDOH�7KH�KLJK�SURSRUWLRQ�RI�QRQ�SUR¿W�
¿UPV�DOUHDG\�JDLQLQJ�VLJQL¿FDQW�WD[�FRQFHVVLRQV�PDNHV�DFFHVVLQJ�IXQGLQJ�IURP�IHGHUDO��VWDWH�RU�ORFDO�JRYHUQPHQWV�LQFUHDVLQJO\�GLI¿FXOW��SDUWLFXODUO\�DV�JRYHUQPHQWV�DUH�
LQFUHDVLQJO\�LQFOLQHG�WR�RIIHU�IXQGLQJ�WR�ODUJHU��SULYDWLVHG�VHUYLFHV�WKDW�RIIHU�a broad range of services to numerous
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Basis of Competition ,Q�UHFHQW�\HDUV��WKHUH�KDV�EHHQ�D�JURZLQJ�WUHQG�WRZDUGV�RUJDQLVDWLRQV�RXWVRXUFLQJ�VRPH�RU�DOO�IXQGUDLVLQJ�DFWLYLWLHV�WR�FRQVXOWDQWV��,QFUHDVLQJO\��GRQRUV�DQG�SRWHQWLDO�GRQRUV�DUH�UHTXLULQJ�information on the costs of charities’
programs and are directing donations to
WKRVH�FKDULWLHV�WKDW�DUH�HI¿FLHQW�DQG�FDQ�direct a high proportion of the funds
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With organisations in the industry
motivated by service to recipients rather
WKDQ�UHWXUQV�WR�LQYHVWRUV��WKH�PDQQHU�RI�competition differs from an industry
GULYHQ�E\�FRPPHUFLDO�IRUFHV��7KDW�LV�QRW�to say that these organisations do not
VWULYH�IRU�H[FHOOHQFH�DQG�SURPLQHQFH�KRZHYHU��ZLWK�DEXQGDQW�H[DPSOHV�RI�competitive behaviour evident in various
VHJPHQWV�RI�WKH�LQGXVWU\�With government funding such an
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In competing for donations and
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IRFXV�IXQGUDLVLQJ�LQLWLDWLYHV�RQ�ORFDO�HIIRUWV��UDWKHU�WKDQ�EURDGHU�GULYHV�VXFK�DV�WKRVH�XQGHUWDNHQ�E\�JURXSV�OLNH�:RUOG�9LVLRQ��*RYHUQPHQW�EXGJHWV�HDFK�\HDU�DUH�¿QLWH�LQ�VL]H��ZLWK�WKH�GLIIHUHQW�VHJPHQWV�RI�WKH�LQGXVWU\�DOO�VHHNLQJ�WR�EH�DOORFDWHG�DV�PXFK�IXQGLQJ�DV�SRVVLEOH��7KLV�RIWHQ�PHDQV�WKDW�OREE\�JURXSV�IRU�KRVSLWDO�VSHQGLQJ�ZLOO�EH�VHHNLQJ�PRQH\�WKDW�PD\�FRPH�DW�WKH�H[SHQVH�RI�WKH�DUWV��HGXFDWLRQ�RU�RWKHU�OLQHV�RI�EXVLQHVV�DOVR�FDWHUHG�WR�E\�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�
Level & Trend Competition in this industry is Medium and the trend is Steady
Level & Trend Barriers to Entry in this industry are High and Steady
Barriers to entry checklist Level
Competition MediumConcentration LowLife cycle stage GrowthCapital intensity LowTechnology change MediumRegulation and policy MediumIndustry assistance High
SOURCE: WWW.IBISWORLD.COM.AU
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 23
Competitive Landscape
Industry Globalisation
The vast majority of the organisations in
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DQG�GHYHORSPHQW��2UJDQLVDWLRQV�VXFK�DV�:RUOG�9LVLRQ��WKH�5HG�&URVV��DQG�&DUH��DUH�JOREDO�RUJDQLVDWLRQV�GHGLFDWHG�WR�XVLQJ�VNLOOV�DQG�UHVRXUFHV�IURP�GHYHORSHG�FRXQWULHV�VXFK�DV�$XVWUDOLD�WR�EHQH¿W�SHRSOH�OLYLQJ�LQ�SRYHUW\�DQG�FRQÀLFW�RYHUVHDV��,Q�DGGLWLRQ�WR�SRYHUW\�DOOHYLDWLRQ��WKHVH�RUJDQLVDWLRQV�DUH�FRPPRQO\�DW�WKH�IRUHIURQW�RI�QDWXUDO�GLVDVWHU�UHVSRQVH�SURJUDPV�DURXQG�WKH�ZRUOG�
Barriers to Entrycontinued
IXQGLQJ��PDLQWDLQLQJ�JRYHUQPHQW�contracts and tax concessions can be
H[SHQVLYH��SODFLQJ�JUHDWHU�SUHVVXUH�RQ�industry entrants attempting to gain
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governments for community services are
PRVW�FRPPRQO\�PHGLXP�WR�ORQJ�WHUP��L�H��¿YH�\HDUV�RU�JUHDWHU���PHDQLQJ�WKDW�QHZ�HQWUDQWV�PXVW�KDYH�D�VSHFL¿F�FRQWUDFW�LQ�PLQG�ZKHQ�HQWHULQJ�WKH�LQGXVWU\��RU�ZLOO�EH�IRUFHG�WR�FRPSHWH�ZLWKRXW�SXEOLF�IXQGLQJ��DVVLVWDQFH�RU�FOLHQWV�IRU�D�SURORQJHG�SHULRG��7KH�LQGXVWU\�H[SHULHQFHV�D�KLJK�OHYHO�RI�
UHJXODWLRQ�DQG�RIWHQ�VWULQJHQW�UHTXLUHPHQWV�PXVW�EH�PHW�WR�JDLQ�DOO�QHFHVVDU\�OLFHQFHV�DQG�DFFUHGLWDWLRQV�WR�RSHUDWH�LQ�WKH�LQGXVWU\��IXUWKHU�LQFUHDVLQJ�WKH�FRVWV�IRU�QHZ�HQWUDQWV�7KH�UHSXWDWLRQ�RI�HVWDEOLVKHG�
RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\�LV�D�YHU\�UHDO�EDUULHU�WR�HQWU\��0DQ\�LFRQLF�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�KDYH�EHHQ�LQ�$XVWUDOLD¶V�QDWLRQDO�FRQVFLRXVQHVV�IRU�GHFDGHV�DQG�SRWHQWLDO�GRQRUV�DUH�IDPLOLDU�ZLWK�WKHLU�OLQH�RI�ZRUN��FUHGLELOLW\�DQG�SUHYLRXV�FDPSDLJQV��$V�D�UHVXOW��D�QHZ�HQWUDQW�WR�WKH�LQGXVWU\�PD\�¿QG�LW�GLI¿FXOW�WR�UDLVH�IXQGV�LQ�D�VLPLODU�LQGXVWU\�QLFKH�WR�DQ�HVWDEOLVKHG�RUJDQLVDWLRQ�
Level & Trend Globalisation in this industry is Low and the trend is Steady
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 24
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St John of God Health CareEstimated market share: 1.0%6W�-RKQ�RI�*RG�+HDOWK�&DUH�LV�D�QDWLRQDO�QRW�IRU�SUR¿W�&DWKROLF�KHDOWKFDUH�SURYLGHU��ZLWK�IDFLOLWLHV�DQG�VHUYLFHV�LQ�:HVWHUQ�$XVWUDOLD��9LFWRULD��1HZ�6RXWK�:DOHV�DQG�1HZ�=HDODQG��7KH�RUJDQL]DWLRQ�HPSOR\V�DERXW�������SHRSOH�QDWLRQDOO\�DQG�RSHUDWHV����KRVSLWDOV��SUHGRPLQDQWO\�ORFDWHG�LQ�UHJLRQDO�DUHDV���ZLWK�������EHGV�DQG�6W�-RKQ�RI�*RG�3DWKRORJ\�,Q�WKH�IRXU�\HDUV�WKURXJK����������6W�
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Mater Health ServicesEstimated market share: 1.0%0DWHU�+HDOWK�6HUYLFHV��HVWDEOLVKHG�E\�WKH�6LVWHUV�RI�0HUF\�LQ�������RSHUDWHV�D�QHWZRUN�IHDWXULQJ�VHYHQ�KRVSLWDOV�LQ�%ULVEDQH��WKUHH�SXEOLF�DQG�IRXU�FR�ORFDWHG��DQG�HPSOR\V�DERXW�������VWDII��0DWHU�ZDV�LQFRUSRUDWHG�LQ������DV�0DWHU�0LVHULFRUGLDH�+HDOWK�6HUYLFHV�%ULVEDQH�/WG��7KH�FRPSDQ\�JHQHUDWHG�VDOHV�UHYHQXH�RI��������PLOOLRQ�LQ����������XS�IURP��������PLOOLRQ�LQ����������DQG�SURGXFHG�D�QHW�VXUSOXV�RI�DSSUR[LPDWHO\�������PLOOLRQ��XS�IURP������PLOOLRQ�LQ����������
Australian Red Cross SocietyEstimated market share: 0.9%$XVWUDOLDQ�5HG�&URVV�6RFLHW\�LV�DQ�$VVRFLDWLRQ�DVVRFLDWHG�ZLWK�WKH�LQWHUQDWLRQDO�5HG�&URVV�5HG�&UHVFHQW�0RYHPHQW�WKDW�RSHUDWHV�LQ�����FRXQWULHV��PDNLQJ�WKH�ZRUOG¶V�ODUJHVW�KXPDQLWDULDQ�RUJDQLVDWLRQ��,Q�$XVWUDOLD��WKH�PRYHPHQW¶V�DLP�LV�WR�LPSURYH�OLYHV�DQG�UHGXFH�YXOQHUDELOLW\�LQ�$XVWUDOLDQ�VRFLHW\��,Q�SUDFWLFDO�WHUPV��WKLV�HQWDLOV�distribution of funds and resources
WRZDUGV�DVVLVWLQJ�GLVDGYDQWDJHG�DQG�GLVDVWHU�DUHDV�LQ�$XVWUDOLD�DQG�DURXQG�WKH�ZRUOG��LQFOXGLQJ�$ERULJLQDO�DQG�
Major CompaniesThere are no major players in this industry | Other
St John of God Health Care Inc – fi nancial performance
YearRevenue
($ million) (% change)NPAT
($ million) (% change)
2007-08 759.1 N/C 38.2 N/C2008-09 804.3 6.0 29.6 -22.52009-10 895.1 11.3 39.8 34.52010-11 942.8 5.3 26.9 -32.4
SOURCE: IBISWORLD
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 25
Major Companies
Other Companiescontinued
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EHQH¿WHG��ZLWK�WKH�VXFFHVV�RI�IXQGUDLVLQJ�HIIRUWV�HYHU�LQFUHDVLQJ��SDUWLFXODUO\�GXH�WR�VHYHUDO�VLJQL¿FDQW�GLVDVWHUV�DURXQG�WKH�ZRUOG�DQG�LQ�$XVWUDOLD�LQ�UHFHQW�\HDUV��LQFOXGLQJ�WKH�9LFWRULDQ�%XVK¿UHV�LQ����������WKH�4XHHQVODQG�)ORRGV�LQ����������WKH�-DSDQHVH�7VXQDPL�LQ���������DQG�WKH�+DLWL�(DUWKTXDNH�LQ����������DPRQJ�RWKHUV��7KH�VLJQL¿FDQW�DPRXQW�RI�RXWUHDFK�IRU�WKH�9LFWRULDQ�%XVK¿UHV�LQ�SDUWLFXODU�VDZ�UHYHQXH�OHYHOV�VN\URFNHW�LQ����������OLNH�RWKHU�$XVWUDOLDQ�KXPDQLWDULDQ�RUJDQLVDWLRQV��UDLVLQJ�WKHLU�UHYHQXH�OHYHOV�DERYH����ELOOLRQ�WKDW�\HDU�DQG�LQFUHDVLQJ�WKHLU�PDUNHW�VKDUH�WHPSRUDULO\�WR������IURP������WKH�\HDU�SUHYLRXV��6LQFH�WKHQ�PDUNHW�VKDUH�KDV�UHPDLQHG�VRPHZKDW�VWHDG\�DW�LWV�FXUUHQW�OHYHO�
Salvation Army AustraliaEstimated market share: 0.7%7KH�6DOYDWLRQ�$UP\��ZKLFK�VSOLWV�LWV�operations into its southern and
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DQG�VRXWKHUQ�WHUULWRULHV�DVVLVWHG�����
PLOOLRQ�SHRSOH��(DFK�ZHHN�WKHVH�RUJDQLVDWLRQV�SURYLGHG��DPRQJ�RWKHU�WKLQJV��UHKDELOLWDWLRQ�VXSSRUW�IRU�������SHRSOH��������FRXQVHOOLQJ�FDOOV��HPSOR\PHQW�VHUYLFHV�WR�������SHRSOH����������PHDOV��DQG��������IRRG�YRXFKHUV�'XULQJ�D�GRZQWXUQ��VXFK�DV�RQH�
H[SHULHQFHG�GXULQJ������DQG�������FKDULWDEOH�JLYLQJ�WHQGV�WR�VOLS�PDUNHGO\��+RZHYHU��WKH�KLJK�OHYHO�RI�JRYHUQPHQW�IXQGLQJ�IRU�ODUJH�JURXSV�VXFK�DV�WKH�6DOYDWLRQ�$UP\�HQVXUHV�WKDW�LW�LV�LQVXODWHG�IURP�WKH�ZRUVW�RI�WKLV��0RUHRYHU��WKHUH�LV�D�IDU�OHVVHU�SUHYDOHQFH�RI�$XVWUDOLDQ�FKDULWLHV�DQG�HQGRZPHQWV�LQYHVWLQJ�RQ�WKH�VWRFN�PDUNHW��SUHYHQWLQJ�WKH�NLQG�RI�¿QDQFLDO�FROODSVH�H[SHULHQFHG�E\�FKDULWLHV�LQ�WKH�8QLWHG�6WDWHV�,Q����������JRYHUQPHQW�IXQGLQJ�
DFFRXQWHG�IRU�������RI�WRWDO�RSHUDWLQJ�LQFRPH��OHJDFLHV�DQG�GRQDWLRQV��������VRFLDO�VHUYLFH�FOLHQW�FRQWULEXWLRQV��������GLYLGHQGV�DQG�LQWHUHVW�������DQG�RWKHU�LQFRPH�������([SHQVHV�IURP�RSHUDWLQJ�DFWLYLWLHV�ZHUH�EURNHQ�GRZQ�LQWR�VRFLDO�SURJUDPV��������RI�H[SHQVHV�IURP�RUGLQDU\�DFWLYLWLHV���HYDQJHOLFDO�DQG�RWKHU�SURJUDPV����������DJHG�FDUH����������HPSOR\PHQW�DQG�\RXWK�WUDLQLQJ����������UHF\FOLQJ�RSHUDWLRQV��������DQG�WKH�5HG�6KLHOG�$SSHDO��������
Epworth HealthCareEstimated market share: 0.5%(SZRUWK�+HDOWK&DUH��D�QRW�IRU�SUR¿W�RUJDQLVDWLRQ��LV�WKH�ODUJHVW�SULYDWH�KRVSLWDO�RSHUDWRU�LQ�0HOERXUQH��WKURXJK�WKUHH�FDPSXVHV��(SZRUWK�JHQHUDWHG�UHYHQXH�RI�DERXW������PLOOLRQ�LQ���������DQG�KDG�RYHU�������HPSOR\HHV��
Salvation Army Australia Eastern Division – fi nancial performance
YearRevenue
($ million) (% change)
2006-07 292.1 N/C2007-08 293.0 0.32008-09 341.7 16.62009-10 306.9 -10.22010-11 328.4 7.0
SOURCE: ANNUAL REPORT
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 26
Major Companies
Other Companiescontinued
The organisation has improved its
¿QDQFLDO�SHUIRUPDQFH�LQ�UHFHQW�\HDUV�DQG�KDV�FRPSOHWHG�SODQV�IRU�PDMRU�EXLOGLQJ�ZRUNV��,Q�2FWREHU�������+HDOWK6RXWK�&RUSRUDWLRQ�RI�WKH�8QLWHG�6WDWHV�FORVHG�D�WUDQVDFWLRQ�WR�VHOO�&HGDU�&RXQW\�5HKDELOLWDWLRQ�+RVSLWDO�LQ�0HOERXUQH�DQG�UHODWHG�DVVHWV�WR�(SZRUWK�)RXQGDWLRQ�DQG�,1*�0DQDJHPHQW�/WG��7KH�&HGDU�&RXUW�DVVHWV�LQFOXGH�D����EHG�UHKDELOLWDWLRQ�KRVSLWDO�DQG�RXWSDWLHQW�FHQWUH��D�VWDQGDORQH�UHKDELOLWDWLRQ�IDFLOLW\�DW�2DVLV�/HLVXUH�&HQWUH�DQG�DQ�RFFXSDWLRQDO�PHGLFLQH�UHKDELOLWDWLRQ�WKHUDS\�EXVLQHVV�
World Vision AustraliaEstimated market share: 0.4%)RXQGHG�LQ�WKH�8QLWHG�6WDWHV�LQ�������:RUOG�9LVLRQ�LV�D�PDMRU�&KULVWLDQ�IXQGUDLVLQJ�DQG�FKDULWDEOH�RUJDQLVDWLRQ��ZLWK�D�SDUWLFXODU�IRFXV�RQ�\RXWK�SRYHUW\��HVSHFLDOO\�LQ�$IULFD��:RUNLQJ�RQ�VL[�FRQWLQHQWV��:RUOG�9LVLRQ�LV�RQH�RI�WKH�ODUJHVW�&KULVWLDQ�UHOLHI�DQG�GHYHORSPHQW�RUJDQLVDWLRQV�LQ�WKH�ZRUOG��ZLWK�D�EXGJHW�RI�RYHU������ELOOLRQ�SHU�\HDU��7KH�JURXS¶V�WRWDO�UHYHQXH��LQFOXGLQJ�JUDQWV��SURGXFW�VDOHV�DQG�IRUHLJQ�GRQDWLRQV��ZDV�DERXW������ELOOLRQ�LQ������:RUOG�9LVLRQ�,QWHUQDWLRQDO�RSHUDWHV�DV�
D�IHGHUDWLRQ�RI�LQWHUGHSHQGHQW�QDWLRQDO�RI¿FHV��HDFK�RYHUVHHQ�E\�WKHLU�RZQ�ERDUGV�RU�DGYLVRU\�FRXQFLOV��(DFK�RI¿FH�DQG�LWV�members have created a common mission
VWDWHPHQW��7KURXJK�DQ�RQJRLQJ�V\VWHP�RI�SHHU�UHYLHZ��HDFK�QDWLRQDO�SDUWQHU�LV�KHOG�
DFFRXQWDEOH�IRU�DQG�DELGHV�E\�FRPPRQ�SROLFLHV�DQG�VWDQGDUGV�7KH�JURXS¶V�$XVWUDOLDQ�RSHUDWLRQV�
UHDFKHG�UHYHQXH�RI�DERXW��������PLOOLRQ�LQ����������ZKLFK�ZDV�D�GURS�RI������PLOOLRQ�RQ�WKH�SUHYLRXV�\HDU¶V�¿JXUH�– indicating that donations over
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UHYHQXH��XQOLNH�PDQ\�RWKHU�FKDULWLHV�LQ�$XVWUDOLD�ZKR�UHO\�RQ�JRYHUQPHQW�IXQGLQJ��FRPHV�IURP�WKH�DFWLYLW\�WKDW�WKH\�SLRQHHUHG��FKLOG�VSRQVRUVKLS��7KLV�PHWKRG�LQYROYHV�LQGLYLGXDOV�RU�groups paying a predetermined amount
SHU�ZHHN�RU�PRQWK�WR�:RUOG�9LVLRQ��ZKLFK�LV�WKHQ�DVVLJQHG�WR�D�VSHFL¿F�FKLOG¶V�VFKRRO�RU�YLOODJH��ZLWK�ZKRP�WKH�GRQRU�LV�HQFRXUDJHG�WR�LQWHUDFW��7KLV�SURJUDP�RI�GHYHORSLQJ�DQ�DZDUHQHVV�RI�WKH�HIIHFW�RI�GRQDWLRQV�KDV�SURYHQ�VXFFHVVIXO�DV�D�GULYHU�RI�FRQWLQXHG�GRQDWLRQV�
Salvation Army Australia Southern Division – fi nancial performance
YearRevenue
($ million) (% change)
2007-08 285.9 N/C2008-09 295.3 3.32009-10 285.4 -3.42010-11 334.6 17.2
SOURCE: ANNUAL REPORT
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 27
Capital Intensity With so much of the industry’s activities
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Operating ConditionsCapital Intensity | Technology & Systems | Industry VolatilityRegulation & Policy | Industry Assistance
Tools of the trade: Growth strategies for success
SOURCE: WWW.IBISWORLD.COM.AU
Labo
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tens
ive Capital Intensive
Change in Share of the Economy
New Age EconomyRecreation, Personal Services, Health and Education. Firms benefi t from personal wealth so stable macroeconomic conditions are imperative. Brand awareness and niche labour skills are key to product differentiation.
Traditional Service EconomyWholesale and Retail. Reliant on labour rather than capital to sell goods. Functions cannot be outsourced therefore fi rms must use new technology or improve staff training to increase revenue growth.
Old EconomyAgriculture and Manufacturing. Traded goods can be produced using cheap labour abroad. To expand fi rms must merge or acquire others to exploit economies of scale, or specialise in niche, high-value products.
Investment EconomyInformation, Communications, Mining, Finance and Real Estate. To increase revenue fi rms need superior debt management, a stable macroeconomic environment and a sound investment plan.
EducationHealth Services
Welfare Services and Fundraising
Sport Organisations and Other Sports ServicesReligious Organisations and Services
Charities & Not-for-Profi t Organisations
Level The level of capital intensity is Low
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 28
Operating Conditions
Revenue Volatility $V�DQ�LQGXVWU\�WKDW�GHULYHV�D�VLJQL¿FDQW�share of its funding from private donations
DQG�SKLODQWKURS\��UHYHQXH�FDQ�VXIIHU�GXULQJ�SHULRGV�RI�HFRQRPLF�VWULIH��$QRWKHU�PDLQ�VRXUFH�RI�IXQGLQJ�LV�JRYHUQPHQW�JUDQWV��ZKLFK�FDQ�ÀXFWXDWH�GHSHQGLQJ�RQ�JRYHUQPHQW�SROLF\��WKH�HOHFWRUDO�F\FOH��DQG�FRPSHWLWLRQ�IURP�RWKHU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�*RYHUQPHQW�JUDQWV�DUH�D�VWHDGLHU�
medium-term source of funding for
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Technology& Systems
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many donations given to the industry
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Level The level of Technology Change is Medium
Level The level of Volatility is Medium
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 29
Operating Conditions
Regulation & Policy :LWK�RSHUDWRUV�LQ�WKH�LQGXVWU\�LQYROYHG�in activities ranging from junior soccer to
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New Federal Legislation to be introduced,Q�WKH���������EXGJHW��WKH�*LOODUG�*RYHUQPHQW�GHFODUHG�LWV�LQWHQWLRQ�RYHU�WKH�QH[W�VHYHUDO�\HDUV�WR�RYHUKDXO�DQG�QDWLRQDOLVH�WKLUG�VHFWRU�UHJXODWLRQ��E\�HVWDEOLVKLQJ�WKH�$XVWUDOLDQ�&KDULWLHV�DQG�1RW�IRU�3UR¿WV�&RPPLVVLRQ��$&1&��DV�D�QDWLRQDO�LQGXVWU\�UHJXODWRU�IRU�RSHUDWLRQ�LQ�-XO\�������DQG�UHGH¿QLQJ�WKH�ZRUG�µFKDULW\¶�IURP�-XO\������ZKLFK�KDV�QRW�EHHQ�PRGL¿HG�IURP�(QJODQG¶V������GH¿QLWLRQ�LQ�$XVWUDOLDQ�ODZ��7KH�DLP�RI�such reforms is to create greater
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ZHOO�DV�VLPSOLI\�WKH�V\VWHP�E\�LPSOHPHQWLQJ�D�µUHSRUW�RQFH��XVH�RIWHQ¶�VWUDWHJ\�WR�UHSRUWLQJ��7KHVH�PHDVXUHV�DUH�H[SHFWHG�WR�EULQJ�JUHDWHU�HI¿FLHQFLHV�WR�WKH�LQGXVWU\�IRU�ODUJHU�SOD\HUV��ZLWK�%UDG¿HOG�1\ODQG�*URXS�¿QGLQJ�WKDW�current reporting requirements account
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LQGXVWU\��KRZHYHU��LV�WKDW�VLQFH�-XO\������WKH�LQGXVWU\�KDV�EHHQ�WD[HG�IRU�XQUHODWHG�FRPPHUFLDO�DFWLYLWLHV�LQ�RUGHU�IRU�WKH�JRYHUQPHQW�WR�KHOS�JXDUDQWHH�WKDW�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�PDLQWDLQ�WKHLU�DOWUXLVWLF�LQWHQWLRQV��7KLV�PRYH�LV�H[SHFWHG�WR�DOVR�SUHYHQW�LQGLYLGXDOV�DQG�FRPSDQLHV�IURP�VKHOWHULQJ�WKHPVHOYHV�IURP�WD[�HYDVLRQ�
Community services regulation(DFK�VWDWH�DQG�WHUULWRU\�JRYHUQPHQW�KDV�UHVSRQVLELOLW\�IRU�DOO�DVSHFWV�RI�FKLOG�DGRSWLRQ�DV�ZHOO�DV�FRUUHFWLYH�VHUYLFHV�ZLWKLQ�LWV�MXULVGLFWLRQ��LQ�DGGLWLRQ�WR�KDYLQJ�WKHLU�RZQ�OHJLVODWLRQ�UHODWLQJ�WR�FKLOG�DGRSWLRQ�DQG�FRUUHFWLYH�VHUYLFHV��LQFOXGLQJ�SDUROH���7KH�&RPPRQZHDOWK�*RYHUQPHQW�LV�SULQFLSDOO\�UHVSRQVLEOH�IRU�IDPLO\�DIIDLUV�WKURXJK�WKH�)DPLO\�/DZ�$FW�DQG�WKH�0DUULDJH�$FW�7KH�+$&&�$FW�DXWKRULVHV�WKH�
&RPPRQZHDOWK�*RYHUQPHQW�WR�SD\�¿QDQFLDO�DVVLVWDQFH�WR�VWDWH�DQG�WHUULWRU\�JRYHUQPHQWV�XQGHU�DJUHHPHQWV�ZLWK�WKH�&RPPRQZHDOWK�*RYHUQPHQW�IRU�WKH�provision of home and community
VHUYLFHV��7KH�REMHFWLYH�RI�WKH�DJUHHPHQW�LV�the provision of moneys by the
Revenue Volatilitycontinued
SOURCE: WWW.IBISWORLD.COM.AU
Volatility vs Growth
Reve
nue
vola
tility
* (%
)
1000
100
10
1
0.1
Five year annualised revenue growth (%)–30 –10 10 30 50 70
Hazardous
Stagnant
Rollercoaster
Blue Chip
* Axis is in logarithmic scale
Charities & Not-for-Profi t Organisations
A higher level of revenue volatility implies greater industry risk. Volatility can negatively affect long-term strategic decisions, such as the time frame for capital investment.
When a fi rm makes poor investment decisions it may face underutilised capacity if demand suddenly falls, or capacity constraints if it rises quickly.
Level & Trend The level of Regulation is Medium and the trend is Increasing
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 30
Operating Conditions
Regulation & Policycontinued
FRPPRQZHDOWK��VWDWH�DQG�WHUULWRU\�governments to assist governments and
FRPPXQLW\�RUJDQLVDWLRQV�LQ�GHYHORSLQJ�D�range of integrated home and community
FDUH�IRU�WKH�IUDLO�DJHG�DQG�\RXQJHU�SHRSOH�ZLWK�GLVDELOLWLHV�DQG�WKHLU�FDUHUV��7KH�DJUHHPHQW�DOVR�IDFLOLWDWHV�WKH�PDLQWHQDQFH�RI�WKRVH�SHRSOH�LQ�WKHLU�RZQ�KRPHV��DQG�avoids their premature or inappropriate
DGPLVVLRQ�WR�ORQJ�WHUP�UHVLGHQWLDO�FDUH��WKHUHE\�LPSURYLQJ�WKHLU�TXDOLW\�RI�OLIH�7KH�6XSSRUWHG�$FFRPPRGDWLRQ�
$VVLVWDQFH�$FW������SURYLGHG�D�EDVLV�IRU�WKH�&RPPRQZHDOWK�*RYHUQPHQW�DQG�state and territory governments to fund
support accommodation and other
DVVLVWDQFH�VHUYLFHV��7KH�SURJUDP��6$$3��DLPV�WR�SURYLGH�WUDQVLWLRQDO�VXSSRUWHG�DFFRPPRGDWLRQ�DQG�UHODWHG�VHUYLFHV�WR�KHOS�SHRSOH�ZKR�DUH�KRPHOHVV��LQ�FULVLV�RU�DW�LPPLQHQW�ULVN�RI�EHLQJ�KRPHOHVV�WR�DFKLHYH�WKH�KLJKHVW�SRVVLEOH�GHJUHH�RI�VHOI�UHOLDQFH�DQG�LQGHSHQGHQFH��7KH�FRPPRQZHDOWK��VWDWH�DQG�WHUULWRU\�JRYHUQPHQWV�IXQG�WKH�6$$3�SURJUDP��7KH�&RPPRQZHDOWK�*RYHUQPHQW�SURYLGHV�DERXW�����RI�6$$3�IXQGLQJ�7KH�&RPPRQZHDOWK�6WDWH�7HUULWRU\�
'LVDELOLW\�$JUHHPHQW��&67'$��LV�D�IXQGLQJ�DJUHHPHQW�EHWZHHQ�JRYHUQPHQWV�WKDW�SURYLGHV�D�IUDPHZRUN�IRU�D�V\VWHP�RI�DGPLQLVWHULQJ�VHUYLFHV�IRU�SHRSOH�ZLWK�D�GLVDELOLW\��8QGHU�WKH�DJUHHPHQW��VWDWH�DQG�WHUULWRU\�JRYHUQPHQWV�DUH�UHVSRQVLEOH�IRU�SURYLGLQJ��LQWHU�DOLD��QRQ�UHVLGHQWLDO�FDUH��DV�ZHOO�DV�DFFRPPRGDWLRQ�VXSSRUW�DQG�UHVSLWH�VHUYLFHV��&RPPRQZHDOWK��VWDWH�DQG�WHUULWRU\�
JRYHUQPHQWV�KDYH�DGGLWLRQDO�FRPPXQLW\��LQGLYLGXDO�DQG�IDPLO\�VXSSRUW�SURJUDPV�WKDW�SURYLGH�IXQGV�WR�ZHOIDUH�RUJDQLVDWLRQV�WKDW�GHOLYHU�WKH�VHUYLFH��
0RVW�VWDWH�DQG�WHUULWRU\�JRYHUQPHQWV�KDYH�OHJLVODWLRQ�FRQWUROOLQJ�IXQGUDLVLQJ��7KH�OHJLVODWLRQ�VHHNV�WR�SURWHFW�WKH�SXEOLF�DJDLQVW�IUDXG��PLVDSSURSULDWLRQ�RI�IXQGV��PLVOHDGLQJ�FRQGXFW��DQG�HQVXUH�WKDW�WKH�SXEOLF�KDYH�DFFHVV�WR�LQIRUPDWLRQ�DQG�WKDW�RUJDQLVDWLRQV�XVH�DFFHSWDEOH�IXQGUDLVLQJ�SUDFWLFHV�
Fundraising and financial regulation7KH�LQGXVWU\¶V�NQRZOHGJH�RI�WKHLU�OHJDO�HQYLURQPHQW��DFFRUGLQJ�WR�ODZ�¿UP�0DNLQVRQ��G¶$SLFH��QHHGV�PXFK�LPSURYHPHQW��ZLWK�PDQ\�SOD\HUV�LQ�WKH�LQGXVWU\�VWDWLQJ�WKH\�DUH�XQDEOH�WR�GHDO�ZLWK�EHTXHVWV�DQG�SURSHUW\�OHJDO�LVVXHV�VXI¿FLHQWO\�
The states and territories have
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JRYHUQPHQW�ZHOIDUH�GHSDUWPHQWV��DOWKRXJK�DGRSWLRQV�DUH�DOVR�DUUDQJHG�by non-government organisations in
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LPSRVHG�E\�FRXUWV��ZKLFK�SUHVFULEH�FRQGLWLRQV�DQG�SODFH�RIIHQGHUV�XQGHU�FRQWUROOLQJ�VXSHUYLVLRQ�IRU�OHVV�WKDQ�����RI�WKH�WLPH��7KHVH�VHUYLFHV�DUH�IXQGHG�DQG�provided by state and territory
JRYHUQPHQWV��7KH�)XQGUDLVLQJ�,QVWLWXWH�$XVWUDOLD�KDV�LVVXHG�D�FRGH�RI�SURIHVVLRQDO�FRQGXFW��,W�SURYLGHV�JXLGHOLQHV�WR�PHPEHUV�UHTXLULQJ�GLVFORVXUH�WR�GRQRUV�and specifying correct procedures for
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WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 31
Operating Conditions
Industry Assistance :KLOH�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�FRPPRQO\�H[LVW�IRU�DVVLVWLQJ�RWKHUV��WKH�RUJDQLVDWLRQV�WKHPVHOYHV�DUH�DOVR�DVVLVWHG�LQ�YDULRXV�ZD\V��$UJXDEO\��WKH�PRVW�VLJQL¿FDQW�PDQQHU�LV�YLD�WD[DWLRQ�FRQFHVVLRQV�WKDW�DSSO\�WR�UHJLVWHUHG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV��$V�RI�-XQH��������������QRW�IRU�SUR¿W�RUJDQLVDWLRQV�ZHUH�UHJLVWHUHG�DV�WD[�FRQFHVVLRQ�FKDULWLHV��DQG�DERXW�����RI�WKRVH�HQGRUVHG�DV�GHGXFWLEOH�JLIW�UHFLSLHQWV��2UJDQLVDWLRQV�HQGRUVHG�DV�GHGXFWLEOH�JLIW�UHFLSLHQWV�HQDEOH�GRQRUV�WR�RIIVHW�WKHLU�GRQDWLRQV�DJDLQVW�WKHLU�DQQXDO�WD[�OLDELOLWLHV��FUHDWLQJ�DQ�LQFHQWLYH�WR�GRQDWH��$XVWUDOLDQ�WD[SD\HUV�FODLPHG������ELOOLRQ�IRU�GHGXFWLEOH�JLIWV�LQ����������LQFUHDVLQJ�DERXW�����SHU�DQQXP�IURP������PLOOLRQ�LQ����������2WKHU�WD[�EHQH¿WV�HQMR\HG�E\�RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\�LQFOXGH�IULQJH�EHQH¿W�WD[�FRQFHVVLRQV��DERXW������ELOOLRQ�SHU�\HDU��DQG�VWDWH�SD\UROO�WD[�FRQFHVVLRQV��DERXW������PLOOLRQ�SHU�\HDU��$QRWKHU�VHW�RI�ODZV�WKDW�DVVLVWV�WKH�
LQGXVWU\�UHODWHV�WR�WKH�RSHUDWLRQ�RI�JDPLQJ�PDFKLQHV��7KH�VSHFL¿FV�RI�WKH�ODZV�YDU\�IURP�VWDWH�WR�VWDWH��EXW�RYHU������PLOOLRQ�ZRUWK�RI�FRQFHVVLRQDO�WD[�EHQH¿WV�DUH�FODLPHG�E\�VSRUWLQJ�FOXEV�DQG�FRPPXQLW\�EDVHG�RUJDQLVDWLRQV�ZLWK�OLFHQFHV�WR�RSHUDWH�JDPLQJ�PDFKLQHV�
In addition to tax concessions received
E\�QRW�IRU�SUR¿W�RUJDQLVDWLRQV��ORFDO��VWDWH�DQG�IHGHUDO�JRYHUQPHQW�IXQGLQJ�LV�D�VLJQL¿FDQW�VRXUFH�RI�LQFRPH�DQG�UHVRXUFHV�IRU�WKH�LQGXVWU\��&RPPRQO\�PDGH�LQ�WKH�IRUP�RI�JUDQWV�RU�FRQWUDFWV��SXEOLF�PRQH\�LV�DOORFDWHG�WR�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�ZKR�SDUWQHU�ZLWK�JRYHUQPHQW�WR�SURYLGH�VHUYLFHV��7KH�IHGHUDO�JRYHUQPHQW�GHSDUWPHQW�WKDW�DGPLQLVWHUV�$XVWUDOLD¶V�LQWHUQDWLRQDO�DLG�SURJUDP��$XV$LG��ZRUNV�ZLWK�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�WR maximise the effect and reach of
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Level & Trend The level of Industry Assistance is High and the trend is Steady
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 32
Key StatisticsRevenue
($m)
Industry Value Added
($m) Establishments Enterprises Employment Exports
($m) ImportsWages ($m)
Domestic Demand
2002-03 62,896.5 37,072.0 44,662 37,250 713,154 3,271.0 -- 27,213.7 N/A2003-04 69,466.2 39,079.7 45,900 38,218 765,214 3,391.3 -- 29,989.5 N/A2004-05 75,791.3 41,397.4 46,935 38,982 811,893 3,785.3 -- 32,718.6 N/A2005-06 82,308.0 44,404.3 48,540 39,918 858,982 4,457.6 -- 35,597.8 N/A2006-07 88,283.4 47,253.5 50,030 41,008 889,919 4,709.3 -- 37,982.8 N/A2007-08 92,270.7 49,070.8 51,581 42,279 906,827 4,712.4 -- 40,185.8 N/A2008-09 89,424.9 49,933.0 51,890 42,533 937,660 5,029.6 -- 41,230.7 N/A2009-10 95,424.0 52,736.9 52,565 43,086 966,727 5,741.5 -- 44,611.6 N/A2010-11 101,536.8 54,119.1 53,511 43,861 1,018,930 5,760.9 -- 47,600.6 N/A2011-12 104,989.1 56,504.5 54,635 44,800 1,059,688 6,079.8 -- 49,742.7 N/A2012-13 108,978.6 58,548.1 55,837 45,758 1,099,956 6,783.2 -- 51,533.4 N/A2013-14 113,773.7 60,802.1 56,897 46,619 1,143,954 7,699.9 -- 53,491.6 N/A2014-15 117,755.7 63,320.2 58,035 47,531 1,190,856 8,585.7 -- 55,738.3 N/A2015-16 121,759.4 66,285.7 59,370 48,612 1,242,063 9,277.1 -- 58,413.7 N/A2016-17 127,969.1 69,727.1 60,855 49,797 1,297,956 9,926.5 -- 61,451.3 N/ASector Rank 5/24 1/24 4/24 4/24 1/24 3/8 N/A 1/24 N/AEconomy Rank 12/495 6/495 13/495 11/495 2/495 13/210 N/A 4/495 N/A
IVA/Revenue (%)
Imports/Demand (%)
Exports/Revenue (%)
Revenue per Employee
($’000)Wages/Revenue
(%)Employees
per Est.Average Wage
($)
Share of the Economy
(%)2002-03 58.94 N/A 5.20 88.19 43.27 15.97 38,159.64 3.562003-04 56.26 N/A 4.88 90.78 43.17 16.67 39,191.00 3.602004-05 54.62 N/A 4.99 93.35 43.17 17.30 40,299.15 3.712005-06 53.95 N/A 5.42 95.82 43.25 17.70 41,441.85 3.862006-07 53.52 N/A 5.33 99.20 43.02 17.79 42,681.19 3.972007-08 53.18 N/A 5.11 101.75 43.55 17.58 44,314.74 3.972008-09 55.84 N/A 5.62 95.37 46.11 18.07 43,971.91 3.982009-10 55.27 N/A 6.02 98.71 46.75 18.39 46,147.05 4.112010-11 53.30 N/A 5.67 99.65 46.88 19.04 46,716.26 4.152011-12 53.82 N/A 5.79 99.08 47.38 19.40 46,940.89 4.162012-13 53.72 N/A 6.22 99.08 47.29 19.70 46,850.42 4.152013-14 53.44 N/A 6.77 99.46 47.02 20.11 46,760.27 4.172014-15 53.77 N/A 7.29 98.88 47.33 20.52 46,805.24 4.222015-16 54.44 N/A 7.62 98.03 47.97 20.92 47,029.58 4.282016-17 54.49 N/A 7.76 98.59 48.02 21.33 47,344.67 N/ASector Rank 5/24 N/A 5/8 21/24 2/24 4/24 11/24 1/24Economy Rank 88/495 N/A 127/210 452/495 37/495 143/495 303/495 6/495
Figures are inflation-adjusted 2012 dollars. Rank refers to 2012 data.
Revenue (%)
Industry Value Added
(%)Establishments
(%)Enterprises
(%)Employment
(%)Exports
(%)Imports
(%)Wages
(%)
Domestic Demand
(%)2003-04 10.4 5.4 2.8 2.6 7.3 3.7 N/A 10.2 N/A2004-05 9.1 5.9 2.3 2.0 6.1 11.6 N/A 9.1 N/A2005-06 8.6 7.3 3.4 2.4 5.8 17.8 N/A 8.8 N/A2006-07 7.3 6.4 3.1 2.7 3.6 5.6 N/A 6.7 N/A2007-08 4.5 3.8 3.1 3.1 1.9 0.1 N/A 5.8 N/A2008-09 -3.1 1.8 0.6 0.6 3.4 6.7 N/A 2.6 N/A2009-10 6.7 5.6 1.3 1.3 3.1 14.2 N/A 8.2 N/A2010-11 6.4 2.6 1.8 1.8 5.4 0.3 N/A 6.7 N/A2011-12 3.4 4.4 2.1 2.1 4.0 5.5 N/A 4.5 N/A2012-13 3.8 3.6 2.2 2.1 3.8 11.6 N/A 3.6 N/A2013-14 4.4 3.8 1.9 1.9 4.0 13.5 N/A 3.8 N/A2014-15 3.5 4.1 2.0 2.0 4.1 11.5 N/A 4.2 N/A2015-16 3.4 4.7 2.3 2.3 4.3 8.1 N/A 4.8 N/A2016-17 5.1 5.2 2.5 2.4 4.5 7.0 N/A 5.2 N/ASector Rank 10/24 9/24 12/24 13/24 12/24 4/8 N/A 7/24 N/AEconomy Rank 142/495 123/495 93/495 79/495 60/495 40/210 N/A 68/495 N/A
Annual Change
Key Ratios
Industry Data
SOURCE: WWW.IBISWORLD.COM.AU
WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 33
Jargon & Glossary
BARRIERS TO ENTRY Barriers to entry can be High, Medium or Low. High means new companies struggle to enter an industry, while Low means it is easy for a firm to enter an industry.CAPITAL/LABOUR INTENSITY An indicator of how much capital is used in production as opposed to labour. Level is stated as High, Medium or Low. High is a ratio of less than $3 of wage costs for every $1 of depreciation; Medium is $3-$8 of wage costs to $1 of depreciation; Low is greater than $8 of wage costs for every $1 of depreciation.CONSTANT PRICES The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using 2011-12 as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the ‘real’ growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the Australian Bureau of Statistics’ implicit GDP price deflator.DOMESTIC DEMAND The use of goods and services within Australia; the sum of imports and domestic production minus exports.EARNINGS BEFORE INTEREST AND TAX (EBIT) IBISWorld uses EBIT as an indicator of a company’s profitability. It is calculated as revenue minus expenses, excluding tax and interest.EMPLOYMENT The number of working proprietors, partners, permanent, part-time, temporary and casual employees, and managerial and executive employees.ENTERPRISE A division that is separately managed and keeps management accounts. The most relevant measure of the number of firms in an industry.ESTABLISHMENT The smallest type of accounting unit within an Enterprise; usually consists of one or more locations in a state or territory of the country in which it operates.EXPORTS The total sales and transfers of goods produced by an industry that are exported.IMPORTS The value of goods and services imported with the amount payable to non-residents.
INDUSTRY CONCENTRATION IBISWorld bases concentration on the top four firms. Concentration is identified as High, Medium or Low. High means the top four players account for over 70% of revenue; Medium is 40 –70% of revenue; Low is less than 40%.INDUSTRY REVENUE The total sales revenue of the industry, including sales (exclusive of excise and sales tax) of goods and services; plus transfers to other firms of the same business; plus subsidies on production; plus all other operating income from outside the firm (such as commission income, repair and service income, and rent, leasing and hiring income); plus capital work done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed tangible assets are excluded.INDUSTRY VALUE ADDED The market value of goods and services produced by an industry minus the cost of goods and services used in the production process, which leaves the gross product of the industry (also called its Value Added).INTERNATIONAL TRADE The level is determined by: Exports/Revenue: Low is 0-5%; Medium is 5-20%; High is over 20%. Imports/Domestic Demand: Low is 0-5%; Medium is 5-35%; and High is over 35%.LIFE CYCLE All industries go through periods of Growth, Maturity and Decline. An average life cycle lasts 70 years. Maturity is the longest stage at 40 years with Growth and Decline at 15 years each.NON-EMPLOYING ESTABLISHMENT Businesses with no paid employment and payroll are known as non-employing establishments. These are mostly set-up by self employed individuals.VOLATILITY The level of volatility is determined by the percentage change in revenue over the past five years. Volatility levels: Very High is greater than ±20%; High Volatility is between ±10% and ±20%; Moderate Volatility is between ±3% and ±10%; and Low Volatility is less than ±3%.WAGES The gross total wages and salaries of all employees of the establishment.
Industry Jargon
IBISWorld Glossary
CHARITY The ‘Pemsel Promises’ identifies four charitable purposes: the relief of poverty, the advancement of education, the advancement of religion, and other purposes beneficial to the community as a whole.NGO Stands for non-government organisation.
NOT-FOR-PROFIT ORGANISATION An organisation that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals.
Disclaimer
This product has been supplied by IBISWorld Pty Ltd. (‘IBISWorld’) solely for use by its authorised licenses strictly in accordance with their license agreements with IBISWorld. IBISWorld makes no representation to any other person with regard to the completeness or accuracy of the data or information contained herein, and it accepts no responsibility and disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage whatsoever suffered or incurred by any other person resulting from
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