New technologies, a rising population, and increased interest in construction activities have led to significant growth in Australia’s construction sector. There has been a steady demand for both residential and commercial projects throughout the country, which indicates that construction work will continue to contribute significantly to Australia’s GDP.
Getting an overall picture of the construction industry can be complicated. This is because small-scale and large-scale builders carry out many different projects that contribute to the overall industry’s expansion. Furthermore, technology has revolutionised how builders, subcontractors, engineers, and architects prepare and complete workflows.
Here are 10 interesting statistics that help give you a clear picture of the country’s growing construction industry.
Total construction activities in Australia generate over $350 billion in revenue. This amount translates to 8% of the country’s GDP, all coming from one industry. Construction includes many different components, from commercial work such as hotels to residential projects such as apartments.
There has been year-after-year growth in construction-related activities over the past 10 years. This is because the country’s population (particularly in urban areas) has continued to expand. The demand for housing, commercial premises, and labour has also grown in response to population trends. With billions being generated in the construction sector every year, employment and economic opportunities have also increased.
As the construction industry continues to grow, so has employment. It is expected that the industry will employ 1.3 million people by 2022. In fact, there has been a steady increase in employment since 2015. During that year, the industry employed a total of 1 million people. That number has risen steadily to 1.2 million in 2019, and is projected to hit 1.3 million over the next 3 years.
As construction projects continue to expand, there’s growing demand for skilled labour in planning, engineering, construction technology, safety, and other related fields. Australians are increasingly finding that a career in construction could be a good fit for their skillset.
A recent report by IBIS World revealed that Australia’s construction sector has over 360,000 individual businesses. Most of these businesses are small-scale builders who carry out a variety of projects. It is these small builders that drive growth and innovation in construction.
Technology such as estimating software, Artificial Intelligence, and automation are all being championed by small companies in the construction industry. This bottom-up approach is what has fuelled rapid growth and increased value in construction-related activities.
Speaking of technology, digital solutions within the construction sector will boost value over the next few years. It is projected that such solutions will increase yearly revenue by $25 billion over the next 2 years.
Digital solutions in construction are the future. Whether you’re running a small or large construction business, your top priority should be to leverage technologies such as construction software, wearables, drones, and laser imaging.
There are numerous benefits of using digital solutions in construction. Not only will you cut costs, but you’ll also be able to handle more projects and boost the efficiency of internal workflows. You’ll also have an easier time when managing subcontractors on site.
Autonomous technology is a growing trend in Australia’s construction sector. For example, self-driving trucks and smart machines are being used on various sites to automate mundane tasks among employees. In this way, your team can focus on value-generating activities such as customer-relationship management, compliance, and real-time decision-making. By 2024, autonomous technology and wearables will be the norm in construction sites throughout the country.
Wearables are particularly beneficial when it comes to workplace safety. Smart watches, fit bits, and VR headsets can be used by construction workers to identify and avoid common hazards in the workplace. Your construction business should be prepared to consider investing in autonomous and wearable technologies over the next 5 years.
Growth in construction activity has also translated into higher salaries for workers. Whether you’re a project manager, civil engineer, site manager, or individual contractor, you may have noticed that the general payscale has increased since 2015. Currently, the average salary for a regular construction worker is $28/hour, with average annual incomes for construction professionals ranging between $100,000-$280,000.
Lucrative salaries are a benefit for both employers and employees. For your construction business, you can offer higher pay for potential recruits to join your company. In this way, you can attract top talent from competing industries such as cybersecurity, manufacturing, IT, and transport. Recruiting top talent to work in construction will be even more critical in upcoming years. This is because you’ll need such professionals to operate advanced machines, analyse and interpret data, and make real-time decisions that fall in line with current trends.
One thing that commercial builders should be aware of is that engineering construction is hot. Infrastructure projects such as bridges, roads, and tunnels are expected to increase by 6.5% in 2018-2019, and by 8% in 2019-2020. This rapid growth can be attributed to the higher population numbers and a need for more robust infrastructure in Australian cities.
Builders also have a significant role to play during engineering construction projects. They help plan and coordinate infrastructure, and some also partner with engineers to design and erect appropriate buildings.
Commercial construction projects, such as industrial, hospitality, and health-related projects, have increased by 4.3% since 2018. Growth in commercial construction can be attributed to an increase in tourism, business, and manufacturing.
In particular, Australia’s tourism sector has expanded in recent years. More local and international travellers are looking for accommodation in the country due to a more favourable dollar. This has led to a demand for hotels in many urban areas such as Sydney, Melbourne, and Perth.
Of the 360,000 individual construction businesses in Australia, over 90% are small companies. Small businesses are the fuel that drives growth in the construction sector.
This ground-up approach has led to the adoption of better construction techniques, safety standards, and growth in employment opportunities.
The most evident trend in Australia’s construction industry is that it is growing year after year. But how much growth are we experiencing and what does the future hold? By the end of 2019, we can expect to see an increase of 8.2% in total construction projects. Just last year, total growth in such projects stood at 11.7%.
This goes to show that Australia’s construction industry is expanding rapidly and you can expect an increase in opportunities to complete more projects and attract more clients in the near future.By Jason Hook
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