Australia’s construction industry will regain momentum driven by investments in transport infrastructure, says GlobalData

11th April 2019 -- The Australian construction industry, which contracted an estimated 2.8% in real terms in 2018, is expected to regain growth momentum and rise at a compound annual growth rate (CAGR) of 2.73% during the forecast period (2019–2023), supported by the government’s focus on development of transport and commercial infrastructure in the country, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘ Construction in Australia - Key Trends and Opportunities by State and Territory to 2023 reveals that the industry’s output value in real terms is expected to increase from US$166.7bn in 2018 to US$190.7bn in 2023, measured at constant 2017 US dollar exchange rates.

Australia’s construction industry declined from US$171.5bn in 2017 to US$166.7bn in 2018 due to a sharp drop in activity in the oil and gas sector as major oil and gas projects, which provided a spurt to the industry’s growth in 2017, were completed or are close to being completed. These included the multi-billion Gorgon project and the Wheatstone and the Ichthys Liquefied Natural Gas (LNG) projects.

Dhananjay Sharma, Construction Analyst at GlobalData, comments: “Australia’s construction industry is expected to recover and expand over the forecast period, driven by investments in transport infrastructure.”

Residential construction was the largest market in the Australian construction industry during the review period, accounting for 35.4% of its total value in 2018. However, the market is currently in decline, owing to an oversupply in major cities. According to the Australian Bureau of Statistics (ABS), the total number of dwelling units approved in the country decreased by 5.6% in 2018.

Sharma concludes: “Uncertainties with regard to monetary and wages policies, as well as political instabilities due to the upcoming federal election in May 2019 are expected to hold back the growth of the residential construction market in the near term. However, with the government planning to invest A$75bn (US$58.9bn) to develop the country’s transport infrastructure by 2027–2028, the sector is expected to regain growth momentum. Commercial and industrial projects, and an improvement in consumer and investor confidence, will also provide support to the sector.”

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.



Contact:

EMEA & Americas: +44 (0)207 832 4399
Asia-Pacific: +91 40 6616 6809

Email Contact




Review Article Be the first to review this article
Featured Video
Latest Blog Posts
Alex Carrick, Chief Economist at ConstructConnectThe AEC Lens
by Alex Carrick, Chief Economist at ConstructConnect
June Jobs Reports: U.S. Bounces Back; Canada Weak M/M but Strong Ytd
Andrew WattsAECCafe Guest Blog
by Andrew Watts
Digital Pattern Books Disrupt Construction Industry
Jobs
Structural Engineering Lead for K2M Design at Cleveland, Ohio
Structural Engineer for Design Everest at San Francisco,, California
Project Manager, Architect, for K2M Design at Indianapolis, Indiana
Geographic Information System Specialist for U. S. Dept. of the Interior at Washington, District Of Columbia
Engineer A, B or C (Transportation) for City of Austin at Austin, Texas
Structural Engineer for Harris County Houston Tx at Houston, Texas
Upcoming Events
International Conference on Structures and Architecture (ICSA) 2019 at Calouste Gulbenkian Foundation Lisbon Portugal - Jul 24 - 26, 2019
SIGGRAPH 2019 at Los Angeles CA - Jul 28 - 1, 2019
CII Annual Conference 2019 at Manchester Grand Hyatt San Diego San Diego CA - Aug 5 - 9, 2019
2019 Federal Design-Build Symposium at Crystal Gateway Marriott Arlington VA - Aug 7, 2019
Kenesto: 30 day trial
Bentley:
CADalog.com - Countless CAD add-ons, plug-ins and more.



Internet Business Systems © 2019 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
TechJobsCafe - Technical Jobs and Resumes EDACafe - Electronic Design Automation GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise