The latest, end-2014 Master Builders Australia National Survey of Building & Construction set the foundations for a great year ahead in the building sector with good conditions expected for builder owners, employees and sub-contractors alike.
The latest nation-wide Master Builder’s survey conducted in December 2014 shows profitability and business conditions have improved significantly within the sector over the course of last year and will only continue to rise. The owner builders surveyed are optimistic about the future and expect business to pick up even more throughout the next 6 months.
Masters Builders Association Building & Construction National Survey Highlights
In 2014, the index which measures the building sectors amount of business activity increased from 61.9 in September to 63.4 in December. The index has been trending much higher than the ‘satisfactory 50’ level over the past two years. About half of surveyed builders state their business conditions are ‘good’, or ‘very good’.
Owner builders’ confidence is up as they predict an influx of work ahead for their businesses. The index for future business expectations, confidence and conditions jumped up from the ‘satisfactory 50’ level to 65.0, the best result in 6 years.
Sales are recovering and are well above average levels again. About 30% of survey participants noted their sales were improving. In December 2014, sales increased by 11.5% since the September 2014 quarter.
Employees and sub-contractors are enjoying the best job prospects in 7 years since the GFC. The index has risen from 50.0 to 56.0 regarding hiring intentions of builder business owners.
As for apprentices, one-third of surveyed builder owners say they intend to take on more apprentices while the other two-thirds say they won’t be making any changes to their apprentice levels.
The backlog of work is improving. 45% of builders said they worked more than 6 months over the course of 2014 with only 6.4% having less than a month of work.
Finance and labour constraints for builder owners are easing to levels seen before the GFC.
Economic and business conditions are improving in the eyes of builder owners. The index is sitting above the ‘satisfactory 50’ mark.