Its annual construction outlook report – Ambiguous markets ? Succeeding in the New Normal ? Australian Construction Market Outlook 2013/2014 ? predicts that there will only be slight growth of around two per cent in the total construction projects market, which includes oil, mining and gas but not detached housing.
?Over the past year the Australian construction industry has continued to struggle with limited growth and it is a very similar picture for the year ahead,? said Damian Eastman, chief operating officer for BCI Australia & New Zealand. ?However, the multi-residential and commercial sectors are showing signs of positive progression which allow for some reassurance to the market.?
Overall, building commencements should show stability in the 2013-2014 time frame as aged care construction continues to grow with an increase of 10 per cent, bringing the total value to $2 billion for aged care.
Hospitality projects are expected to be worth $1.6 billion with a growth of 45 per cent from the previous period, while the multi-residential market has $8.3 billion of projects lined-up and should almost recoup the shortfall experienced in 2012-2013.
The retail construction sector has been expanding and there was a 19 per cent increase in the value of work, another increase of 10.55 per cent is expected for the 2013-2014 period, amounting to $4.2 billion.
The availability of finance remains the biggest detractor for growth and although there are encouraging signs, the current workload is only described as ?fair?.
BCI Media Group analysed 350,000 projects to deliver the report and trends for the next 12 months.
Source: BCI Media Group