bull run

The out­look is bright for Aus­tralian con­struc­tion

Earthmovers & Excavators - - News -

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

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 Na­tional Broad­band Net­work – will also sup­port a strong up­swing in the value of en­gi­neer­ing con­struc­tion, which is ex­pected to rise by 8.0 per cent in 2017-18 and a fur­ther 10.6 per cent in 2018-19 after shrink­ing by 6.5 per cent 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,” he adds.

The ACA is up­beat about the fore­cast and its im­pli­ca­tions for em­ploy­ment in the con­struc­tion sec­tor, with ex­ec­u­tive di­rec­tor Lind­say Le

Compte say­ing: “New South Wales and Vic­to­ria are pow­er­ing ahead with much-needed con­struc­tion to sup­port metropoli­tan and re­gional in­fra­struc­ture needs.”

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