Key in­dus­try trends/Pay­ment time re­view

BIS Ox­ford Eco­nomics’ Adrian Hart (above) out­lines key chal­lenges and op­por­tu­ni­ties

Earthmovers & Excavators - - Contents -

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,”

Hart says.

“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

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