Defining an Industry: What is the Size and Scope of the Australian Building and Construction Industry

The analysis and understanding of the conduct and performance of an industry beginswith a study of its structure. However, before analysing an industry's structure it isnecessary to define the industry and identify its size, scope and scale to establish itstrue economic contribution. This paper discusses the size and scope of the Australianbuilding and construction industry, firstly, from a traditional industry economics approachby firm size and business characteristics using data from three construction industrysurveys done over 15 years by the ABS. Secondly, data from an industry 'cluster'perspective is shown. The objective of the paper is to compare the differences found inindustry size and scope in the structure-conduct-performance approach and thealternative industry cluster approach. Each model reveals different characteristics of theindustry. The conclusion finds that the building and construction industry is a casewhere the traditional structure-conduct-performance model cannot be easily applied.53

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