The state of the Construction Industry Australia – Part 1

In this first of 3-part series, we’re taking a look at the changes, new innovations and the economic health of Australia’s construction industry.

The building and construction industry is currently playing a significant role in Australia’s economic transition from a heavy reliance on the mining & resources industry to a more diversified economic landscape.

Australia’s building industry is playing a significant role in Australia’s economic transition from the mining-based 2-speed economy, to a more innovative & diversified economic landscape.
Residential building sits amidst a healthy development pipeline with building work likely to reach $91b in real terms, in the 2016/17 period, before any decline. Hence, forthcoming construction activity which will play a key role in Australia’s economic transition.
The construction industry in Australia comprises over 330,000 businesses nationwide and directly employs over one million people (around 9% of the total workforce).


In particular, non-residential building activity is proving a segment of strong growth: areas such as Aged Care, Retail and Accommodation.


There’s also been a fundamental shift in make-up of construction activity: many new significant infrastructure projects in Australia today, are in areas that will boost mobility & liability in Australia’s major cities. Hence, the industry’s role as a major driver of economic growth remains firm.


The sector contributes around 8% of GPD. The construction industry is Australia’s third largest contributor to GDP in terms of the volume of its output.


“With technology continuing to emerge at an unprecedented scale, our population growing and aging, and the economy transitioning from the biggest resources boom in over a century, it is more important now than ever before that the industry has a relevant and credible ‘compass’ for the next ten years”. ACIF


Non-residential construction employment is expected to recover through 2016 and the first half of 2017. Total construction employment is expected to increase over the remainder of 2016 (+2.6%), in response to rising infrastructure work. Over this period, growth is expected across all employment categories, led by on-site (+3.1%) and off-site employees (+3.4%). In the six months to June 2017, total employment is expected to increase by a further 2.9%. Growth will be mainly boosted by a 4.0% increase in the number of on-site employees, with the numbers of off-site and sub-contractors lifting by 2.6% and 2.0% respectively.

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