Survive and

Prosper

Research Report

Challenges and recommendations for the commercial HVAC industry in Australia

Sumit Oberoi

2017

“Two types of choices seem to me to have been crucial in tipping the outcomes [of the various societies' histories] towards success or failure: long-term planning and willingness to reconsider core values. On reflection we can also recognize the crucial role of these same two choices for the outcomes of our individual lives.”

― Jared Diamond, Collapse: How Societies Choose to Fail or Succeed

Agenda

PRESENTATION OUTLINE

RESEARCH PROCESS

Research process involved two primary data collection activities

1

A online survey distributed to all AMCA members across Australia

2

In depth interviews conducted with random participants

3

Background industry market research

4

SURVEY QUESTIONS

❖ AMCA member survey posed a mix of multiple choice and open ended questions.

❖ Multiple choice focused on the likelihood of certain scenarios continuing in the upcoming year.

❖ The open ended asked members to identify three most pressing threats facing their business as well as their view on the role of the AMCA.

RESPONSE RATE

❖ Survey response rates vary across target audiences.

❖ Typical response rate for a survey of this magnitude is 42 companies responding online and a further 18 participated in the qualitative interviews.

❖ Response rate was acceptable data set for the analysis of threats facing AMCA members.

CODING AND CLASSIFICATION OF OPEN-ENDED QUESTIONS

Benefits

❖ Allowed respondents to provide answers in their own words.

❖ Consolidation and extraction of meaning, answers were coded and grouped into categories based on shared characteristics.

❖ Systematic approach was applied to develop hierarchy to properly analyse trends and insights.

BOTTOM-UP ANALYSIS

BOTTOM-UP ANALYSIS

TOP-DOWN ANALYSIS

RESULTS

Survey requested participants to name the three primary threats facing business. No guidance was provided meaning respondents were not limited to multiple choice or pre-defined responses.

SUMMARY OF RESULTS

SOURCES OF THREATS

SOURCES OF THREATS

FORCES OF COMPETITION

BARGAINING POWER OF

BUYERS

COMPETITION FROM NEW

AND EXISTING RIVALS

BARGAINING POWER OF SUPPLIERS

MANAGEMENT AND

OPERATIONAL ISSUES

GENERAL FINANCIAL

MANAGEMENT

GENERAL FINANCIAL

MANAGEMENT

STAFFING AND SKILLS

EXTERNAL THREATS

BUSINESS IMPLICATIONS

OUTLOOK

STRATEGIES AND RECOMMENDATIONS

FINDING 1: LOWER MARGINS ARE THE NEW REALITY

STRATEGIES AND RECOMMENDATIONS

FINDING 2: RELATIONSHIP WITH BUILDERS CONTINUE TO DETERIORATE

STRATEGIES AND RECOMMENDATIONS

FINDING 3: SKILL SHORTAGES – A THREAT TO NOW AND THE FUTURE

STRATEGIES AND RECOMMENDATIONS

FINDING 4: TECHNOLOGY ADOPTION IS VITAL, BUT NOT SUFFICIENT

R X C X B = Change Success

30% of change initiatives succeed

Self-assessment well positioned to tackle change

57.1% expect improvement

“it is not an event, or even a process: it is a mindset.

STRATEGIES AND RECOMMENDATIONS

FINDING 5: CAPACITY TO MANAGE CHANGE WILL DETERMINE FUTURE SUCCESS

Alain WahaBuroHappold EngineeringUK

BUSINESS SESSIONS – KEY TAKEAWAYS

Steve JonesDodge AnalyticsUSA

Warwick StannusAG CoombsAMCA

Digital Transformation: Survive or Thrive

Key Global Construction Trends

Lean Construction Workshop

Lean Construction

Thank you