Construction outlook report’s sobering news

The report provides critical analyses on the current state of the construction industry in Australia. It also reveals exclusive information on construction volumes by key sectors and states.

By analysing 350,000 projects, BCI Media Group was able to identify the market segments set to take off, those set to trend sideways and areas that may fall over in the next 12 months.

?For the first time we are seeing real signs of the effect of the mining boom in areas outside of mining, with the emergence of a two-speed economy in building construction. Queensland and Western Australia are the only two states predicted to have growth in building construction next year,? said Damian Eastman, the chief operating officer of BCI Australia & New Zealand.

?The challenges for our industry over the next 12 months will be to remain optimistic in the face of negative market sentiment and the availability of finance.

?We expect the total construction projects market (building and infrastructure projects, excluding the detached housing sector as well as mining, oil and gas) to grow 4.8 per cent in the upcoming 2012-2013 financial year. This compares with a rise of 4.05 per cent for the current fiscal year ending 30 June, 2012.

Infrastructure construction (including transport and utilities construction) is looking very positive in 2012-2013 with a growth rate of 14.15 per cent predicted after a slightly smaller than expected rise of 5.5 per cent this fiscal year.

Construction sentiment in early 2012 continued to decline. Availability of finance remains the biggest detractor of growth but negative business sentiment is now the second biggest issue holding back the construction sector.

Source: BCI Media Group

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