Australia’s Construction Market Poised for Growth
If there’s one thing the global construction industry expects, it’s the constant ebb and flow of economic change. Preparing for and managing the risks associated with those changes just comes with the territory.
Recent focal shifts in Australia’s construction sector, as well as a rising population, indicate a coming sea change in infrastructure spending and development. Highlighting those trends is the Australian Construction Industry Forum’s (ACIF) newly released Australian Construction Market Report, which offers an outlook for residential, non-residential and engineering construction across the country over the next 10 years.
Australian Construction Market Report: A Brief Overview
Bob Richardson, chair of the Construction Forecasting Council and managing director of Xmirus notes in the report that as “Australia’s population continues to grow…we need the buildings and infrastructure to meet the demands that come from a growing population and to underpin the future prosperity of the country.” Natural growth and immigration will both contribute to the country’s population increase, which is expected to climb by 380,000 residents each year, bringing Australia’s total projected population to 29 million over the next decade.
Though the outlook for total building activity (including residential, non-residential and engineering construction) is projected to fluctuate, nationwide spending is expected to increase. And Australia’s construction organisations will be expected to rise to the occasion. “The construction industry plays a key role in contributing to the economic prosperity of the country through construction investment expenditure,” Richardson says, “but also by providing the buildings and infrastructure essential to all other sectors of the economy.”
Changes in Australia’s Labour Market
Over the next year alone, employment growth is expected to gradually drive down unemployment to 5 per cent. In fact, building and construction activity is expected to provide 1.2 million jobs this year alone, which will account for roughly 10 per cent of the country’s total employment. Moreover, the end of the mining construction boom and an economic shift toward services (particularly in Australia’s most populous states and territories), means total building and construction activity is expected to rise to $238 billion.
Understandably, the industry is concerned about emerging skills shortages. Workers displaced from falling residential building activity may not immediately fit into the highly technical roles involved in infrastructure design and construction. That economic shift, plus the influx of workers will require construction organisations to quickly and efficiently close the skills gap.
Download the Full Report
We’ve only begun to scratch the surface of ACIF’s findings. The full report (available for purchase), includes a state-by-state breakdown to, as Richardson notes, “give industry participants quality information and insights that they need to make more informed investment and business decisions.”
You’ll also find specialist reports from industry leaders CoreLogic, the Housing Industry Association (HIA), Urbis and AECOM, which provide detailed expert commentary about trends in Australia’s real estate construction, a demographic analysis of the country’s housing requirement and much more.
Which aspects of the report do you find most intriguing? Do you have the right technology in place to meet future demand? Let’s chat about it.