Carpentry services
Posted by admin on May 11, 2010 in Uncategorized | Subscribe
The main activities for businesses in this industry are providing a wide range of carpentry services in the construction, commercial and domestic markets. These include:
construction of structural framework and formwork
installation of doors and partitions
home building projects and renovation
manufacturing and on-site building of kitchens, bathrooms, furniture and shop fittings.
These benchmarks do not apply to entities that manufacture pre-fabricated cabinets, wardrobes, joinery and shop-fittings or cabinet makers and installers.
Performance benchmarks
These performance benchmarks have been developed from income tax and business activity statements lodged for the 2007–08 income year.
The main expenses for these businesses are labour, cost of materials and rent.
The key benchmark ratio for this industry is labour to turnover. The average ratios for cost of goods sold and labour increase as the turnover increases; however, the average ratio for rent decreases as the turnover increases.
Annual turnover range
Benchmark
Low
$75,000 – $110,000
Medium
$110,000 – $400,000
High
$400,000 – $2,000,000
Labour*/ turnover
0% – 14%
12% – 26%
20% – 36%
Cost of materials/ turnover
11% – 31%
21% – 41%
32% – 48%
* This excludes payments to associated parties. This means that the labor percentage reflects payments made for work done by people unrelated to the owners of the business.
Rent costs
Overall, 89% of carpentry services reported no rental expenses because they usually do not require a workshop or office space. A small number of businesses have reported minimal rental expenses for the storage of vehicle, stocks and equipment or a small office.
Geographical trends
On average, there were no significant differences between metropolitan and regional businesses for the benchmarks and all business performance measures were consistent across states.
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