Key industry trends/Payment time review
BIS Oxford Economics’ Adrian Hart (above) outlines key challenges and opportunities
Acase for reinvesting in mines, strong growth in rail, telecommunications and renewable energy generation, and skilled labour availability are some of the key challenges and opportunities for Australia’s civil construction sector, according to Adrian Hart, construction, maintenance and mining associate director at BIS Oxford Economics. Hart spoke on this topic recently at the National Construction Equipment Convention in Sydney.
In discussing challenges to prepare for, Hart cites unpredictable market fluctuations driven by explosive growth in multiple sectors as an area of key concern.
“The biggest challenge is the high level of volatility we’re seeing in the market overall,”
“Going forward from here, I think the challenge will be to try and provide a more sustainable, smoother pipeline of work into the future.”
Hart highlights rail as the sector to watch, but it still remains to be seen whether the industry can effectively execute on the huge number of projects.
“We don’t expect to see rail construction activity peak until the early 2020s,” he says.
In terms of equipment supply and demand projections, Hart advises that construction companies prepare for increased equipment demand, and the higher prices that come with it.
“There’s going to be a challenge in certain markets where we may not have the equipment that we need, when we need it. So we’ll be paying probably a bit more for it,” he says.
Left: A major challenge in the industry is the high level of volatility in the market