While Australia’s economy has had nearly 30 years without a recession, the prospect of a downturn is still a concern for economists and one that is also felt by the nation. With the predicted risks and economic growth opportunities both balancing delicately on the horizon, it’s hard to know what 2019 has in store for the construction industry. Here are five key takeaways:
1. Residential could suffer
The growth of residential construction in 2019 is still heavily debated. While many foresee a continued surge in unit construction - particularly in Sydney and Melbourne; residential building approvals are in decline and banks are being more cautious in their lending. These factors, combined with the predicted interest rate rise are making investors nervous.
2. We need to attract youth to the workforce
The question of how to attract younger professionals to the construction industry remains a challenge. While the latest data reveals that the construction industry is responsible for the employment of nearly 1.2 million construction jobs in Australia, the youth labour force in construction is expected to decrease by 2.4%.
If you want to learn more about construction innovation and the discussions happening around how to marry young digital natives with older, more experienced construction veterans, have a read of our Issues Paper.
3. Transport will rule
Our government’s significant investment in transport across the nation will benefit businesses in all states and territories. Projects such as the Melbourne to Brisbane Inland Rail project and Western Sydney Airport will form part of the government’s $75 billion transport infrastructure investment.
4. We’re keeping it green
We continue to lead the world’s green building sector and further growth will happen over the next few years. The Green Building Council Australia (GBCA) will hold a strong position as an authority in better design options to reduce our carbon emission footprint. Currently, the residential sector accounts for 57% of emissions from the built environment.
5. The future is cloud-based
A large number of construction businesses still rely on pen and paper, and Excel to manage their functions. But technology is already proving to be essential to success in the industry. So, 2019 will be a time to build and grow a truly collaborative environment to ensure greater productivity, stronger profit margins and a competitive edge. This will see teams working of the same projects and reports in real time, whether they’re on the job site or in the office.
Download a copy of Australia & New Zealand Construction Forecast 2019 for a detailed discussion of the key issues surrounding digital technology in the construction industry in Australia.