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