Those journalists and economists’ prophesying doom and gloom seem to be missing something. Here in Australia, we have a thriving building and construction industry – and one that is expected to rise.
Face it, aside from the useful applications of construction skills (it’s always satisfying to know you can build something – even if it is just a few shelves for a room), people are always going to need things built for them. It’s not as though people have stopped living in houses. And there is a constant need for other projects as well – warehouses, mining facilities, and even business offices need to be built (and renovated) after all.
In short, things are looking up for the industry.
Before we begin to offer career advice based on proclamations of good times, let’s look at some hard and fast numbers.
First of all, where construction seems to be booming:
For those who have an understanding of the Australian economy at the present, this will not be overly surprising. For those who are unaware, the explanation is simple.
Western Australia and Queensland have the highest percentage of the construction market (over 51%) mostly due to the mining boom that, while slowing down, is still a massive driver for the Australian economy as a whole. New South Wales and Victoria take the next largest share of the economy by sheer size of their populations (as well as mining in New South Wales). The remaining states and territories fill up the rest.
From the March quarter in 2015 to the June quarter in 2015, has increased by 0.3%. Whilst this is not a massive increase, compared with the sharp decrease over the previous year, it is a key positive portend for strong future growth.
Furthermore, the increase, even though small, presents a marked turnaround from the previous year. As will be explained in the next section, the small increase is seen as likely the start of another surge in demand for construction workers.
The future is always difficult to see into. How many economists, from Smith to Marx, from Keynes to Friedman, have tried to create an accurate prediction of what the future would look like?
Still, as economics is a science (a dismal one, but a science nonetheless), we can make pretty accurate predictions of what will happen to the building industry in the short-to-medium term (in the long run we’re all dead, so no need to worry about that one).
Despite the sharp decline in recent years, the future is now looking very good: there is a predicted increase of 0.9% increase from 2016 – 2021.
Not only is there expected to be overall growth, revenue and employment figures are expected to jump up. As seen in the graphs below, this year (2015) is expected to be the end of a cyclical decline in the building industry – bring out your hard hats ladies and gents, it’s time to get building.
If you want to learn more about how to get into the building & construction industry and maximise your impact contact our consultants today.
Sources from IBIS World and the ABS.