Australian Construction Trends
Construction has been undergoing a period of recovery since the 2008 world financial crisis. Some countries continue to struggle in reviving construction – the USA and Britain have been particularly hard hit, with many experienced and skilled tradespeople sitting without work.
In Australia, the general picture is better. Industries suffered in 2009 in the aftermath of the credit crunch, but in 2011-12, showed vast signs of improving. In fact, earnings in 2008-2009, which lay at around 100 000 million dollars annually, have trebled and currently sit at 300 000 million dollars a year.
This doesn’t mean that Australia is completely out of the woods. For every thriving state, there’s another that’s still struggling with a relatively subdued construction industry. New South Wales, Queensland and the Northern Territories are currently leading the pack with positive signs of construction recovery and growth. The Tasmanian industries, however, are suffering to the point of crisis. Let’s take a look at general Australian construction trends, and what the forecast looks for the coming years.
Current Nationwide Statistics
Right now, construction is a vital element of Australia’s GDP. In fact, it is responsible for seven per cent of the country’s Gross Domestic Product, employing over nine per cent of the total national workforce. At the moment, the most profitable sectors include the commercial, institutional and civil industries. These sectors are particularly lucrative in Northern Territory, where trade with the rest of Asia (particularly China) is opening up a range of opportunities for large and small businesses.
The residential sector, however, has taken quite a knock. This is particularly evident on the Gold Coast, where consumer confidence has fallen considerably and many lack the resources to invest the building of a home. This is because, in the wake of the 2008 financial crash, the prices for raw materials like steel and petroleum rose considerably, far beyond the grasp of the average prospective home-builder.
Many analysts argue, however, that entire Australian construction industry was saved by some shrewd government investments. Various states injected money into large institutional projects, like schools and colleges. These investments brought in much-needed returns, employing thousands of construction workers – particularly in the states of New South Wales and Northern Territory. Economists believe that these endeavours prevented Australia from slipping into the type of recession as experienced by the USA and the UK.
Recovery is evident in the GDP states. Slow progressions have been made over the years, marking incremental growth in GDP contribution. Right now, the construction industry takes up 7% of Australia’s Gross Domestic Product. This marks a slight increase from 2009’s 6.2% statistic. The finance and insurance sectors are Australia’s largest contributors to GDP, with mining and construction sitting at third and fourth places respectively.
The Latest Developments
The overall value of the Australian construction industry has risen by 15% in spite of the current global recession. This features a 9.7% jump in the overall profit margin. Construction workers have the institutional and commercial sectors to thank for this leap, in spite of the fact that the residential sector continues to suffer.
The average construction salary has also grown, with many companies offering attractive packages to lure in prospective workers. Demand for work is high in heavy machine operation and engineering. In fact, Australian construction workers now out-earn their white collar counterparts, making construction a lucrative career choice for many.