A report from Kennards Hire has revealed Australia’s construction confidence has increased from last year, with the sector viewed as 'stable and resilient to pressures'
Australian family-owned equipment hire business, Kennards Hire, has revealed that construction confidence has increased 12 per cent from last year in its 2024 Construction Confidence Check report.
Its third annual survey shows a majority (93 per cent) of construction business leaders view Australia’s construction industry as stable and able to withstand pressures to continue growing, compared to 81 per cent in 2023.
Survey findings suggest optimism is strong due to cost-saving measures, with 37 per cent of construction business leaders focusing on increasing the quality of workmanship to reduce rework.
Similarly, 57 per cent of those surveyed say their business plan includes investing in technology to manage projects more efficiently and effectively over the next 12 months.
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“Investment into the construction industry is booming like never before, so this year’s Construction Confidence Check survey results of increased confidence are not surprising,” Kennards Hire Commercial general manager Tony Symons says.
“We are currently seeing unprecedented levels of construction activity in every state in Australia, and this work is expected to continue for at least the next three years.”
The 2024 report surveyed over 410 of Australia’s business leaders from small construction business (20-99 employees) and larger one (100 or more employees).
Its findings provide an insight into the fluctuating market, how construction business leaders are faring in the current environment, and an outlook on the industry’s future.
On average, the proportion of total lost productivity hours due to old and faulty equipment is 28 per cent, Symons adds.
“Opting to hire equipment rather than purchasing gives access to products with the latest technology without the burden of ownership, reduces upfront costs, and enables participation in the sharing economy, which we have also found contributes to our customers’ ESG goals,” he says.
Industry perceptions on ESG are also included in this year’s survey, with 90 per cent of construction leaders admitting to having an ESG strategy in place or plans to implement one.
Construction business leaders surveyed say there are three main factors in their ESG approach:
- Meeting mandatory ESG requirements as a project supplier (34 per cent)
- Collaborating with Indigenous-owned suppliers through social procurement (33 per cent)
- Obtaining project site accreditation from the Green Building Council of Australia (33 per cent).