IBISWorld survey of private companies rates Hutchies as Queensland's second largest




1 November 2023




IBISWorld's list of Queensland's largest private companies has rated Hutchies, with revenue of $2. 75 billion this year, as the second-largest private company in Queensland behind meat processor, Teys Australia.

Hutchies' result is a 3.5 per cent increase on 2022. IBISWorld said rising input costs amid high inflation had crushed companies in the construction division, despite revenue success for construction firms in the Top 500.

The report said the 2023 Top 500 Private Companies list unveiled a striking narrative of financial prowess among Australia's leading firms.

The report said:

"Inflation has affected industries across the board over the past year, and the construction division in Australia is no exception. 

Specifically, the influence of inflation on two pivotal industries within the construction division has been particularly noteworthy: commercial and industrial building construction and multi-unit apartment and townhouse construction. 

The impressive revenue leaps within these sectors seems paradoxical when viewed against the backdrop of increasing bankruptcies in the broader construction division.

While revenue is on the rise, an alarming number of players are facing insolvency, painting a complex picture of various construction industries' health.

For many construction companies, revenue growth has failed to keep pace with these surging costs. 

Private companies operating within the commercial and industrial building construction and the multi-unit apartment and townhouse construction industries
have borne the brunt of inflationary pressures.

While these businesses have experienced some of the most substantial revenue hikes over the past year, these have not necessarily translated into profitability.

One key reason for this disparity lies in the inflationary environment.

The costs of crucial inputs have been on a relentless upwards trajectory.

For many construction companies, revenue growth has failed to keep pace with these surging costs.

In some unfortunate cases, costs have actually grown faster than revenue, leaving companies struggling to stay afloat.

The crisis has driven around 2,000 construction companies into liquidation over the past two years."

Read more in Hutchies' Truth