Australian Construction Outlook 2017–18: Summary

Tenderfield
Jul 20, 2017 · 2 min read

According to the June 2017 Construction Outlook Report by AIGroup and Australian Constructors Association, leading construction companies in Australia are anticipating a recovery in engineering and non-residential construction activity in 2017 and 2018.

Source: Construction Outlook June 2017 — AIGroup & Australian Constructors Association

Following a sharp decline of 16.5% in 2016 due to the continuing slowdown in mining related construction, engineering construction is foreseen to grow by 2.9% in 2017 and 6.8% in 2018, bolstered by the strong spending on non-mining infrastructure construction work such as transport and telecommunications infrastructure.

Source: Construction Outlook June 2017 — AIGroup & Australian Constructors Association

Commercial offices, retail and industrial construction activity is predicted to recover during the next two years due to greater outlays by the private sector. The value of commercial work is set to rise by 1.6% in 2017 and 5.6% in 2018, reflecting a significant increase in private building activity in areas such as wholesale/retailing, accommodation and recreation.

Source: Construction Outlook June 2017 — AIGroup & Australian Constructors Association

The growth expectation for multi-level apartments is optimistic in 2017 (increase in turnover of 22.9%) due to the current backlog of work. However, growth outlook is more moderate for 2018 (6.8%) because of the likely excess of supply and reduction in price growth, suggesting that a peak in activity in the apartment building cycle has been reached.

Employment prospects in non-residential construction is expected to improve in 2017 and 2018 to meet the needs of the additional infrastructure-related work. Download the full report here.

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Tenderfield provides a cloud-based construction management software to connect teams to projects without barriers.

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