Construction, Business, Economy - 6 min read
Australia’s construction industry is one of the largest growing sectors in the country, with commercial construction work expected to increase by 9.3% in 2018 alone. With such rapid growth, the industry will continue to demand a larger share of the overall GDP, employ more people, and contribute to the larger economy of Australia.
Australian construction is influencing (and is being influenced by) population growth, housing, technology, and labour. Here are 10 statistics that provide valuable insights into the state of the sector today and what we can expect in the years ahead.
Australia has experienced steady population growth, with an annual growth rate of 1.6% as at the end of 2017. This is being fuelled by two main factors:
Population growth is contributing to rising demand for new structures in both the residential and commercial space.
Unsurprisingly, construction work in urban areas of the country has been increasing steadily, attributed to the growing population in our major cities. In fact, 50% of the population is now settled in one of our 11 major cities (with Sydney and Melbourne accounting for 40% of the country’s total population).
The size of Australia’s construction industry is best-represented by its share of the GDP (gross domestic product); 8%. The sector is the largest non-service related industry, contributing $134.2 billion to the country’s economy.
We can expect increased investment in construction as a result of its size, value, and productivity.
The number of active construction projects is increasing by 2% every quarter. This is perhaps the biggest evidence of the growth of the industry in Australia.
With this growth, we can expect more innovative techniques to fuel more efficient and effective commercial and residential structures.
Australia’s construction industry is not only growing in size, but it’s also growing in productivity. With an increase of 2.8% per year in productivity, the industry is equalling (and sometimes surpassing) its annual employment growth rate.
This increase in productivity can be attributed to technology (like modern estimating software) innovative building techniques and modern construction materials.
The construction industry is not only a large GDP producer; it’s also a large employer.
1.1 million Australians find work in the construction industry in many different capacities. And because the industry as a whole continues to expand into the technology, service and financial sectors, we’re bound to see this number increase in upcoming years.
Construction software platforms have enabled builders to save costs, boost efficiency, and design better structures. The industry is expected to increase in value by $25 Billion a year (over the next decade) due to the use of these software platforms.
Indeed, savings from better resource management and cost-cutting can be redirected to other parts of the industry, adding value back to the sector as a whole.
According to the Australian Construction Outlook Survey (2018), non-residential work is expected to rise by 9.3% in 2018 alone. This falls in line with population growth in urban areas of the city, where we’re bound to experience more commercial structures scraping the sky.
We can expect a rise of 3% in employment rates within the industry in 2018 alone. The constant growth in this sector is also opening up more positions for work and expanding the economy of the country.
For builders, this is the perfect time to invest in technology and more efficient construction techniques.
Modular construction is a sustainable, cost-effective and durable technique for designing homes and buildings. Builders realise that the modular technique has many different benefits and is the construction method of the future.
With an annual growth of 5% in modular construction every year, the industry is slowly moving towards a less labour-intensive and more cost-effective construction model.
To see how you can future-proof your construction business with better technology and take advantage of the sector’s growth, get a free 14-day trial of Cubit today.
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