Forecasts show changing gears in building and construction
Latest industry forecasts for the building and construction industry in Australia show that the economy is changing gears, making a big impact on the one million-plus people employed in the sector.
Australian Construction Industry Forum (ACIF) is an industry peak body that researches the economic framework that drives demand for trades and professions across the industry, across residential building, non-residential building including health, education and retail, plus engineering construction for infrastructure.
“Construction is in the middle of a whirlwind of change in the global economic outlook,” said Peter Barda, Executive Director for ACIF. “Major structural changes are shaping which industries grow and which contract, and where that activity will take place around Australia.
“Total spending in 2013-14 reached $231 billion, slightly lower than the $233 billion we had foreshadowed in December 2014. It is expected that construction activity will fall to $213 billion this year (2014-15).This affects businesses large and small, from architecture to building and trades, and through to facility managers and property owners.”
The macro-economic outlook and interest rate settings are driving a structural shift and churn in the mix of investment in Australia.
Significant increase in residential building is already well underway and an increase to $79 billion in for 2014-15 as a whole is factored in to the revised projections. A larger increase is factored into the projections in 2015-16, raising activity by 9 per cent.
A slight improvement in non-residential spending was observed in 2013-14 from $33 billion in 2012-13 to $35 billion. Total spending in non- residential construction is projected to dip slightly in 2014-15 reflecting soft non-mining business investment in the economy at large.
The biggest change is a reduction in engineering construction, now projected to amount to $100 billion in 2014-15, a decline of 18 per cent on spending in 2013-14. The mining development boom is very definitely over. The slide in activity in this sector will continue over the next few years, reducing spending to $86 billion by 2017-18.
ACIF Forecasts are released twice a year, and published through a unique collaboration of building and construction economists, expert forecasters and high quality data. Using inputs from Australian Bureau of Statistics, Cordell Information and Outlook Economics, leading forecaster Kerry Barwise generates a detailed outlook for the next decade, which is rigorously reviewed by the Construction Forecasting Council.
ACIF Forecasts are released today on the ACIF website www.acif.com.au.
About Australian Construction Industry Forum (ACIF)
Australian Construction Industry Forum (ACIF) is the cohesive, trusted voice of the Australian Construction Industry. ACIF facilitates and supports an active dialogue between the key players in residential and non-residential building, and engineering construction, other industry groups, and government agencies. ACIF’s focus is on innovation, collaboration, equity and sustainability for the industry.
ACIF Members are the most significant Associations in the industry, spanning the entire asset creation process from feasibility through design, cost planning, construction and building and management. ACIF harnesses the resources of its Members to research and develop initiatives that benefit businesses of all sizes, from the largest of construction companies to small consultancies. More information on ACIF is available from www.acif.com.au.
About ACIF Forecasts
ACIF Forecasts are rolling ten year forecasts of demand across residential, non-residential and engineering construction in Australia. The Forecasts are prepared by respected economic modellers, using high quality data sources, and are overseen by ACIF’s Construction Forecasting Council, an industry panel of expert analysts and researchers.
ACIF Forecasts are used by thousands of professionals each year, from across the full range of stakeholders, from major organisations to small consultancies. ACIF Forecasts are released twice a year, and are available as Australian Construction Market Reports, and detailed numbers are available by subscribing to the Customised Forecasts Dashboard. More information about ACIF is available from www.acif.com.au/forecasts.
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Peter Barda, Executive Director, Australian Construction Industry Forum
Phone: 1300 854 543, mobile: 0418 438 550, email: firstname.lastname@example.org
Pia Argiratos, Marketing Manager, Australian Construction Industry Forum
Mobile: 0405 144 314, email email@example.com
More information and resources for media are available at www.acif.com.au/news/media.
Content supplied by the Australian Construction Industry Forum (ACIF).