sunny out­look for OZ

The lat­est Con­struc­tion Out­look sur­vey out­lines pre­dic­tions for the con­struc­tion in­dus­try in 2019

Earthmovers & Excavators - - Industry News -

The lat­est Con­struc­tion Out­look sur­vey pre­dicts a good year ahead for the Aus­tralian con­struc­tion in­dus­try, with in­fra­struc­ture and other non-res­i­den­tial projects ex­pected to make up the lion’s share of ac­tiv­ity.

The sur­vey, com­mis­sioned by the Ai Group and the Aus­tralian Con­struc­tors As­so­ci­a­tion, also notes that the while Aus­tralian con­struc­tion is set to ex­pand in the next 12 months, it will do so at a slower pace than seen re­cently.

The out­look also points to large falls in rev­enue from multi-level apart­ment work (ex­pected to de­cline by 4.8 per cent in 2018-2019 fol­lowed by a sharp con­trac­tion of 17.6 per cent in 2019-2020) and oil and gas project ac­tiv­ity (down 54.8 per cent in 2018–2019, but mod­er­at­ing markedly to -2.0 per cent in 2019–2020).

“Ma­jor con­struc­tion ac­tiv­ity and em­ploy­ment lev­els look set to con­tinue to grow over the next year and a half, largely off the back of the large vol­ume of in­fra­struc­ture work,” Ai Group chief ex­ec­u­tive Innes Wil­lox says.

“This is de­spite sharply lower lev­els of en­gi­neer­ing con­struc­tion in the oil and gas sec­tor; fur­ther eas­ing of min­ing sec­tor ac­tiv­ity; and an ac­cel­er­at­ing slow­down in res­i­den­tial apart­ment build­ing.”

The Aus­tralian Con­struc­tors As­so­ci­a­tion voiced sim­i­lar sen­ti­ments, also not­ing the im­por­tance of gov­ern­ment in­fra­struc­ture plan­ning over 2019.

“The pipe­lines of in­fra­struc­ture projects pro­jected in the Con­struc­tion Out­look will as­sist the in­dus­try plan its fu­ture ac­tiv­i­ties,” ACA ex­ec­u­tive direc­tor Lind­say Le Compte says.

“The piv­otal chal­lenge for gov­ern­ments will be in en­sur­ing that in­fra­struc­ture projects are de­liv­ered as part of a con­sis­tent pipe­line of con­struc­tion ac­tiv­ity. This will help ad­dress ca­pac­ity con­straints and en­able ma­jor projects to be funded and de­vel­oped in a timely man­ner.”

Left: The out­look pre­dicts a good year ahead, but de­clines in multi-level apart­ment work

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