Summary
The global economic and financial crisis has blocked the sustained strong expansion of the construction industry in Australia. The Australian construction market grew by 12.2% and 12.1% respectively in 2007 and 2008 but the growth rates declined in the respective years. Though total construction activity is experiencing decline in its growth rates, demand for mining and engineering projects remained strong while other sub sectors witnessed declines. The total value of construction projects put in place within the Australia in 2008 was AUD162.3 billion (US$138.4 billion) following expansion at a compound annual growth rate (CAGR) of 12.05% since 2003. This positive CAGR was primarily driven by double-digit annual growth in past decade. However, in 2008, the market growth rate declined by one percentage point and further decline is forecasted for 2009. Indeed, the Australian market is not expected to return to the level of its 2008 high until at least 2012. Both non residential and residential sectors maintained a good growth rate in 2008 as well. However, slowdown is expected to impact both the sub-sectors from 2009. Non residential decline is attributed to slower rates of decline in the engineering and commercial construction sectors. There are various issues that are impacting the industry's growth, including labor and capital supply constraints and high costs, which constitute a significant risk to the growth and development of individual firms and the industry as a whole. The current market conditions have been on account of the deteriorating economy and shortages of working capital, which resulted in clients delaying tenders, and in some cases, cancelling planned project developments. On the whole, the continued fall in activity was reflected in further reductions in new orders, employment and supplier deliveries.
Table of contents
Australia Construction Market Analysis
Australia Construction Competitive Landscape
Leading Australia Construction Companies
Australia Construction Market Forecast
Appendix
