A new Australian construction sector outlook survey reveals the industry will experience an exceptional year in 2016 driven by surging demand in road, rail and apartment projects.
According to the Australian Financial Review, this hyper-activity infrastructure boom forecast is evidence of the construction industry’s recovery from the mining & resources down-turn and of the burgeoning business confidence within the sector.
Key predictions of the Australian construction industry lobby group survey:
2016 – 2017 will be the best year the Australian construction sector has seen in 4 years.
The value of rail & road construction projects will grow robustly over 2016 – 2017, pointing to what could be a growth cycle on the way for vital urban transport infrastructure projects over the same time period.
Australian construction companies predict 4.7% average growth over the course of 2016 - 2017.
Multi-level apartment projects will experience vigorous growth. This will be in-line with high Melbourne, Brisbane & Sydney apartment construction approvals. The growth rate of such projects should jump by 13.7% over 2015 – 2016, followed by another climb of 8.1% throughout 2016 – 2017.
Commercial construction demand (industrial, retail & offices) is set to recover slowly over 2015-2017.
Subdued growth is expected for engineering construction projects. The rate of growth of engineering construction is predicted to jump by 4.8% over the course of 2016 – 2017, propelled by massive projects such as the East West Link project in Victoria, and Sydney’s WestConnex.
The wider economy also stands to benefit from increased construction demand.
“The improving outlook for Australia's diverse construction sector & the balanced composition of that outlook are good news for the sector & for the broader economy. It's a promising outlook of a more rapid rebound than had previously been expected. With commercial construction anticipated to lift in 2015 – 2016 & 2016 – 2017, & with the apartment building boom expected to continue, the outlook is for the most balanced pattern of growth for many years," elaborated Innes Willox, the Australian Industry Group chief executive..