Opportunities and Threats the Australian
Construction Industry May be Facing
The construction industry in Australia has been quite lively especially in the last few years. This industry has been growing gradually at a steady rate mainly due to the reason that there have been numerous construction companies (both large and small) that have entered the Australian construction industry. This has generally brought about great competition in the industry, a factor that has helped in the improvement of service delivery in the industry. The Australian construction industry is comprised of different contractors such as residential contractors and civil contractors who mainly build roads and buildings. Analysts project that the Australian construction industry is destined for great heights especially with the great technological advancements in the industry.
The next 12 months are expected to bring about a lot of life and growth in the Australian Industry. This is due to the reason that there is a very high expectation that there will be numerous opportunities that will be created in this sector. It is also expected that thee will be more jobs created in the sector than those in the previous years. This is due to the reason that the expected growth in this sector is bound to bring about great opportunities both in the managerial and labor jobs.
However, despite the expected growth and development of the construction industry in Australia, the industy is also faced with great threats. These threats are most likely expected to cause a delay in the development and growth of the construction industry in Australia. Among the main threats facing this industry is the massive layoffs that are witnessed in the sector. These layoffs have greatly destabilized the sector and have forced some investors to shun away from investing in the sector. In addition to this, the high operation costs and management costs incurred in this sector have also hindered the growth of the sector. The cost of purchasing construction materials and machinery is quite high and as such the profit margins have been greatly reduced.
There have been significant developments and changes in the construction sector not only in Australia but also all around the world. However, it has been noted that in the recent past, the demand in the global construction industry has been falling gradually. This effect has been directly reflected in the construction industry in Australia and as such, the demand in the Australian construction industry has also fallen gradually. Analysts project that the engineering sector in Western Australia is expected to continue growing though at a very steady rate despite the presence of great threats in the sector.
The civil construction sector in South Australia is also expected to grow at considerable levels despite the cancellation of the planned Olympic Dam Expansion. Other sectors of the construction industry in Australia are also expected to grow gradually at considerable rates. However, the building industry (especially in the real estate sector) is expected to have very minimal growth as the threats in this sector overpass the opportunities in the sector. Even with the expected growth and expansion of the construction sector in Australia, it is also expected that there will be numerous threats that are bound to slow the growth and expansion of the sector.