Outlook bright for Australian construction

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  • Earthmovers & Exacavators

There’s good news for Australian construction, with the latest Construction Outlook survey predicting a recovery in major project work through to mid-2019.

Construction -survey


The survey was conducted by industry bodies the Ai Group and the Australian Constructors Association (ACA).

The positive forecast follows three years of declining activity in construction. A major driver of the recovery will be non-mining infrastructure work, with transport projects and commercial building forming the core.

"The survey suggests the worst of the decline in mining-related construction is now behind us along with its negative impact on broader industry conditions," Ai group chief executive Innes Willox says.

After recording a drop in value of 2.1 per cent in 2016-2017, the total value of major project work is forecast to rise by a solid 7.1 per cent in 2017-18, followed by a further rise of 6.8 per cent in 2018-19.

"Rising momentum in new road and rail projects, together with telecommunications infrastructure including the NBN, will also support a strong upswing in the value of engineering construction, which is expected to rise by 8.0% in 2017-18 and a further 10.6% in 2018-19 after shrinking by 6.5% in 2016-17," Willox continues.

"This is very positive for the construction industry businesses, their employees and contractors and the mining, manufacturing and service businesses active in construction supply chains."

The ACA was upbeat about the forecast and its implications for employment in the sector.

"NSW and Victoria are powering ahead with much needed construction to support metropolitan and regional infrastructure needs," ACA executive director Lindsay Le Compte says.

"This is very encouraging for industry as it will support the development and implementation of plans for sustainable industry skills development and job creation, as well as pave the way for more innovative approaches to procurement and project delivery processes to achieve better infrastructure outcomes for the community.

"The larger infrastructure projects will also support additional construction and commercial development along project corridors and provide essential support to the wider construction sector," Le Compte adds.

 

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