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Australia’s Construction Industry Rises Further
- 1. Monitor Lifts Australia’s Construction Industry Rises Further
- 2. As the government is spending more money, the construction industry is set for rapid growth within the next few years. Businesses are also expanding. The Major Gains According to a November 2017 survey from the AI Group, construction is on the upswing. The forecasted value of major construction projects in 2018 is 7.1 per cent per annum. That’s a huge jump from -2.1 per cent per annum in 2016. It will slow down in 2019, but the decline will only be slight at 6.4 per cent. A big part of its gains comes from the government’s initiative to spend more on roads and railways. It is setting aside $70 billion until 2021 for infrastructure. The amount will come from a variety of sources. These include investments in equity, revenues, grants, and loans. Huge transport related projects include the National Rail Program and inland rail ‒ with the government earmarking $10 billion for the former.
- 3. Commercial builders will also be active with construction growing by almost 2 per cent this year. It will pick up further in 2019. By then, the commercial construction sector will have grown by 9.4 per cent. This growth is essential. The analysts see a dramatic slowdown in residential construction. The survey predicted the growth of multi-level apartments will decrease to 15.4 per cent in 2019. From 2015 to 2016, it rose to 16.4 per cent. Dampening the Wins The construction industry has been recession-free for more than 10 years. But certain factors can offset the gains. One of these is the rate of fatality and injury in the industry. The Australian government highlights the declining fatality and injury rates among the workers. But, despite stringent health and safety at work regulations, construction is still one of the three high-risk sectors. For example, 27 per cent of construction deaths were falls. As tall buildings become a fixture in the country, contractors need to invest in reliable equipment and machinery. Proper safety and care for workers enhances reputation ‒ an important edge in an industry that needs to keep its staff to meet future demands.