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Energy Efficiency Offerings Boost Prospects for BMCS Suppliers in a Construction Downturn Finds Frost & Sullivan - The Australian building management and control systems (BMCS) market is challenged by the drop in construction activity, increasingly cost-conscious customers, scant product differentiation, and more intense competition
Energy Efficiency Offerings Boost Prospects for BMCS Suppliers in a Construction Downturn Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Sydney, Australia, 2009/03/30 - The Australian building management and control systems (BMCS) market is challenged by the drop in construction activity, increasingly cost-conscious customers, scant product differentiation, and more intense competition.

   
 
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Apart from dealing with the unprecedented economic downturn, the Australian building management and control systems (BMCS) market is challenged by the drop in construction activity, increasingly cost-conscious customers, scant product differentiation, and more intense competition. The Australian Construction Forecast Council foresees a drastic decline in the non-residential construction market across all states. However, it is heartening to note that positive developments in the education, health, and age care sectors are likely to sustain the growth in the BMCS market. The need for compliance with environmental regulations will also provide a fresh impetus for the market.

New analysis from Frost & Sullivan (buildingtechnologies.frost.com), Strategic Analysis of the Australian Building Management and Control Systems Market, finds that market earned revenues of over $43.00 billion in 2008 and estimates this to reach $ 54.47 billion in 2015.

"Opportunities still exist in the market as the Australian Government is committed to the reduction of greenhouse gas emissions (GHG) in compliance with the Kyoto Protocol," says Frost & Sullivan Industry Analyst Sarah Wang. "This is expected to contribute to the electricity prices increase; and as customers are concerned with building operational costs, controls play a crucial role in cutting down energy consumption expenditure."

The Australian Federal Government has committed a 5 to 15 percent cut in GHG emissions of its 2000 level by 2020. The building sector is responsible for a large proportion of electricity consumption in Australia, and has a considerably large carbon footprint. Costs incurred toward GHG reduction would impact electricity prices and, in turn, raise the operational cost of buildings.

Offering the advantage of energy efficiency, building control systems will continue to open doors for BMCS suppliers. Companies must be focused on offering a better value proposition, improving energy efficiency and cutting operational costs.

Interest in energy savings has percolated down from government agencies to the business sector. Customers are displaying a reluctance to invest in any control system upgrade that entails a payback period longer than three to five years.

"Fortunately studies have shown that it is absolutely feasible to achieve energy savings of up to 30 percent through modifying control systems with a payback period within five years," says Wang. "This factor will help sustain BMC installation and maintenance even during the construction market downturn."

Cost efficiency remains at the crux of marketing strategies for BMCS suppliers. While it is challenging for suppliers to convincingly demonstrate the advantages to the customers, on the flip side, this has reiterated the importance of company credibility in a market that is devoid of entry qualification to regulate the capabilities of suppliers.

Energy Performance Contracting (EPC) is an energy efficiency offering that is being adopted by government agencies due to the long duration of contracts. This could create complications in the implementation of the contract within the private sector (owing to more frequent change of ownership).

To remain competitive under such conditions, Australian BMCS companies must be prepared to change strategies swiftly. Companies that deftly leverage resources from a large installed base to strong financing capabilities are better positioned to withstand difficult times. A credible track record is imperative in winning energy-efficiency contracts.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Donna jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

Strategic Analysis of the Australian Building Management and Control Systems Market is part of the Environment & Building Growth Partnership Service program, which also includes research in the following markets: European BMCS market, North American building automation market, and North American HVAC controls market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

Strategic Analysis of the Australian Building Management and Control Systems Market / P220

 
 
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Energy Efficiency Offerings Boost Prospects for BMCS Suppliers in a Construction Downturn Finds Frost & Sullivan

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