Economics for Business: Industry Background, Demand and Supply Factors

Running Head: ECONOMICS FOR BUSINESS
ECONOMICS FOR BUSINESS

ECONOMICS FOR BUSINESS2
Table of content
Introduction................................................................................................................................2
Industry background...................................................................................................................2
The market structure of the industry..........................................................................................3
Factors that influence demand for the company’s product(s)....................................................4
Factors that influence supply of the company’s product(s).......................................................5
Elasticity.....................................................................................................................................6
Impacts of an event on the industry/company............................................................................6
Conclusion..................................................................................................................................8
References..................................................................................................................................9

ECONOMICS FOR BUSINESS3
Introduction
ADCO Constructions Pty Ltd, operates as a construction company that provides building and
construction services in Australia. With nearly 50 years’ experience, ADCO is one of the
oldest and most established construction companies in Australia. ADCO is governed by a
board of directors chaired by Judy Brinsmead, with strategic support provided by an advisory
board. Its activities include early contractor involvement, design and construction, contractor
management, design management, and cost planning services. The company undertakes and
delivers projects in various sectors, including aged care, aviation, commercial, community,
education, green, health, industrial, interiors, leisure and aquatic, retail, short term
accommodation, student accommodation, and specialist service projects (Baawain et al.
2015). It serves federal, state, and local government agencies, as well as private and
institutional corporates. The company was founded in 1972 and is based in Sydney, Australia.
Also, ADCO is an Australian, family owned Construction Company. ADCO has been steered
by family values, trust and honesty. From day one the company committed to quality
delivery, to their clients and to their people. These foundations have built a great reputation
for the company- over 3,500 projects valued in excess of $14 billion (Chan and Martek,
2017). The people of the company are now 500 strong and growing as they deliver annual
revenues approaching $1 billion. The company is among the top 100 private companies in
Australia.
Industry background
Australia’s construction industry is one of the largest growing sectors in the country, with
commercial construction work expected to increase by 9.3% in 2018 alone. With such rapid
growth, the industry will continue to demand a larger share of the overall GDP, employ more
people, and contribute to the larger economy of Australia. Australian construction is
influencing population growth, housing, technology, and labour. Australia has experienced
steady population growth, with an annual growth rate of 1.6% as at the end of 2017 (Rahmani
et al. 2016). Population growth is contributing to rising demand for new structures in both the
residential and commercial space. Unsurprisingly, construction work in urban areas of the
country has been increasing steadily, attributed to the growing population in our major cities.
In fact, 50% of the population is now settled in one of our 11 major cities. The size of
Australia’s construction industry is best-represented by its share of the GDP (gross domestic