The outlook is bright for Australian construction
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.”