Statistics about the Australian Construction Industry
In 2008, the world experienced a Global Financial Crisis that was to change the face of the construction industry worldwide. In countries like the UK and US, construction contracted dangerously, leaving thousands without work and the respective economies in tatters.
Australia, interestingly, wasn’t as hard hit by the recession. Productivity in construction dipped a little in 2008 while the rest of the world reeled in financial turmoil. However, things recovered quickly in 2009, and now Australian construction looks set to grow to even greater heights. Statistics reveal that between 2008 and 2009, the construction industry was earning 100 000 million dollars a year. 2011-2012 analysis shows that these earnings have trebled, with annual earnings of over 300 000 million dollars. Let’s take a look at some other interesting construction statistics.
How Things Currently Stand
Construction is the fourth largest contributor to Australian Gross Domestic Product (GDP). It employs 9.1 per cent of the national workforce and is currently the fourth largest industry in the country. Australian construction projects concentrate on residential, commercial, civil and institutional building.
Before the Global Financial Crisis of 2008, residential construction was bringing in the most earnings. However, when the Crisis hit, consumer confidence also took a knock, and many people decided that they no longer had adequate resources to invest in large projects, like the building of a home. This also coincided with a rise in the costs of building materials, like steel and fuel, which made construction on the whole more expensive. Residential construction was no longer the most lucrative sector in the Australian industry.
The government sought to stimulate the economy in light of the turmoil of 2008, and invested large amounts of money in institutional and civil developments. These investments paid off, with larger construction projects overtaking the residential sector in terms of earnings. These big civil projects also brought in enough money to shield the Australian construction industry from the turmoil experienced by it American and British counterparts.
Current Contributions to GDP
Construction’s share of GDP now stands at 7%, which is a leap from the 6.2% of a couple of years ago. Right now, it stands behind mining at third place, manufacturing at second place and finance and insurance services in first place.
What’s Been Accomplished So Far?
In 2008-09, the value of construction work lay at $151.3 billion. This increased by 11% in the following fiscal year, in spite of the Global Financial Crisis. Now, overall value in the construction industry has risen by 15%, with a 9.7% increase in the general profit margin. Much of this is related to the rise in civil and commercial building projects. 62.5% of all building projects in the previous year belonged to these sectors, with engineering also playing a prominent role.
Salaries in construction now lie at 43 billion dollars a year. That marks a 5% increase from 2009. Profits in heavy engineering and civil projects have increased by 12 per cent and by 4 per cent in general construction services. People in these sectors are now out-earning their counterparts in residential construction. All states in Australia are enjoying boosts in employment in construction, besides the Gold Coast, which is sadly experiencing contractions in its particular industry.