CARPENTRY INDUSTRY BENCHMARKS

Knowing the carpentry industry benchmark helps you gauge your  business’s performance, identify growth opportunities, and make informed strategic decisions.

The main activities for businesses in this industry are the provision of a wide range of carpentry services in the construction, commercial and domestic markets. These include:

·       formwork

·       installation of doors and partitions

·       renovation

These benchmarks do not apply to cabinet makers.

Performance Benchmarks

These performance benchmarks are based on data from income tax and BAS statements filed with the Australian Tax Office. 

The main expenses for these businesses are labour and cost of materials.

The key benchmark ratio for this industry is total expenses to turnover. This ratio is likely to be the most accurate predictor of business turnover.

Key Benchmark Ratio	Annual Turnover Range
	Low $50,000 – $110,000	Medium $110,001 – $400,000	High More than $400,000
Income Tax Return
Total expenses/turnover	33% - 51%	54% - 71%	80% - 89%
Average total expenses	42%	63%	85%
Activity Statement
Non-capital purchases / total sales	25% - 43%	37% - 57%	57% - 72%

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The benchmarks are published as a range representing ratios reported by businesses grouped either side of the average. Publishing benchmarks as a range allows for variations across financial years, regions and business models.

The following benchmarks are available as a guide for businesses to review their performance and business practices against other similar businesses. The following expenses are not reported by every business, so one or more of these benchmarks may not apply to an individual business.

		BENCHMARK RATIO	Annual Turnover Range
Income Tax Return	Low $50,000 – $110,000	Medium $110,001 – $400,000	High More than $400,000
Cost of Sales / Turnover	10% - 25%	18% - 34%	27% - 41%
Labour / Turnover	23% - 35%	22% - 34%	26% - 42%
Motor Vehicle expenses / turnover	7% - 11%	4% - 7%	2% - 3%