The construction industry in Australia is now expected to expand by 2.2% in real terms in 2021 - marginally down from the publisher’s previous forecast of growth of 2.3%. This downward revision is attributed to the surge of Coronavirus (COVID-19) cases during Q3 2021, and the re-imposition of lockdowns and tightening of restrictions. For instance, the Victorian state government tightened restrictions on the construction industry, permitting only 25% of workforce capacity on large construction sites and only five workers on small construction sites between mid-August and early-September 2021. Further weighing on growth, construction activity was prohibited for two weeks across Melbourne, Ballarat, Geelong, Mitchell Shire and the Surf Coast, between mid-September and early October 2021. These measures are expected to have resulted in daily revenue losses of AUD455 million (US$352.8 million) and wage losses of AUD63 million (US$48.9 million) in the Victorian Building and Construction industry, according to the estimates of the Australian industry body - Master Builders Association of Victoria (MBAV).
The Australian construction industry registered marginal growth of 0.5% year on year (YoY) in the second quarter, offsetting a marginal decline of 0.5% YoY in the previous quarter. As a result, industry growth was relatively muted in the first half of this year, according to the Australian Bureau of Statistics (ABS). In the second half of this year, the industry’s output will be supported by strong residential demand, the easing of restrictions and works on Australia’s considerable public infrastructure pipelines.
The publisher expects the Australian construction industry to register a real average annual growth of 3.4% between 2022 and 2025, supported by construction works on the considerable pipelines of public infrastructure projects. As part of its fiscal year (FY) 2021/2022 (July 2021-June 2022) Budget, released in May 2021, the Australian government announced an additional investment of AUD15.2 billion (US$11.8 billion) on infrastructure works over the next 10 years. This increase brings the Australian government’s 10-year infrastructure pipeline to a total investment of AUD110 billion (US$74.7 billion). Several state governments have released their budgets in recent months, with significant allocations towards the transport, health, education and housing sectors. The state government of Victoria announced plans in May 2021 to invest AUD90.2 billion (US$69.9 billion) on infrastructure between FY2021/2022 and FY2024/2025.
The Australian construction industry registered marginal growth of 0.5% year on year (YoY) in the second quarter, offsetting a marginal decline of 0.5% YoY in the previous quarter. As a result, industry growth was relatively muted in the first half of this year, according to the Australian Bureau of Statistics (ABS). In the second half of this year, the industry’s output will be supported by strong residential demand, the easing of restrictions and works on Australia’s considerable public infrastructure pipelines.
The publisher expects the Australian construction industry to register a real average annual growth of 3.4% between 2022 and 2025, supported by construction works on the considerable pipelines of public infrastructure projects. As part of its fiscal year (FY) 2021/2022 (July 2021-June 2022) Budget, released in May 2021, the Australian government announced an additional investment of AUD15.2 billion (US$11.8 billion) on infrastructure works over the next 10 years. This increase brings the Australian government’s 10-year infrastructure pipeline to a total investment of AUD110 billion (US$74.7 billion). Several state governments have released their budgets in recent months, with significant allocations towards the transport, health, education and housing sectors. The state government of Victoria announced plans in May 2021 to invest AUD90.2 billion (US$69.9 billion) on infrastructure between FY2021/2022 and FY2024/2025.
The publisher’s Construction in Australia - Key Trends and Opportunities by State and Territory to 2025 (Q4 2021) report provides detailed market analysis, information, and insights into the Australian construction industry, including:
- The Australian construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Australian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Australia. It provides:
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Australia, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Australia Construction Market Data
3 Context
4 Construction Outlook
5 Construction Outlook - States and Territories
7 Key Industry Participants
8 Appendix
List of Tables
List of Figures
