Construction in Australia – Key Trends and Opportunities to 2016Timetric
August 3, 2012
252 Pages - SKU: TMTR4861445
Additional InformationConstruction in Australia – Key Trends and Opportunities to 2016
During 2008–2009, the global financial crisis led to many independent lenders withdrawing from the capital market due to difficulties with regards to raising funds. The Australian construction industry faced the specific challenge of increasing costs when obtaining debt financing. Consequently, the industry’s growth rate declined to 1.8% in 2009 compared with 15.1% in 2008. However, the announcement of stimulus packages announced in the 2009–2010 budget had a positive impact on many areas of the economy. Notably, the schools building package provided support to the institutional construction market during a time when obtaining finance was problematic. The Australian government is anticipated to spend on improvements to the education system over the next three-years under the Building Education Revolution (BER) scheme.
Stimulus Packages and Mining Industry set to be Key Growth Drivers
In 2012, the Australian construction industry is expected to recover and stabilize as a consequence of large-scale government stimulus packages, aimed at increasing infrastructure expenditure, creating jobs and easing the availability of credit. Australia’s mining industry is anticipated to be a key growth driver for the economy over the forecast period (2012–2016), during which time private-sector construction expenditure is also anticipated to improve. Both these factors are likely to have a positive impact on the industry by creating jobs and access to credit, which is anticipated to support the housing construction and infrastructure construction markets. Over the forecast period, Timetric expects the Australian construction industry to increase at a CAGR of 6.1%.
Infrastructure Construction Market to Decelerate
Infrastructure construction was the largest construction market, recording a share of 42.6%. Moreover, the market was the fastest-growing in the industry, posting a CAGR of 13.1% during the review period (2007–2011). Despite difficult economic conditions in 2010, the market grew by 12.8% and was supported by government measures to stimulate infrastructure spending in its 2010–2011 budgets. Over the forecast period, the market is expected to register a decelerated CAGR of 9.5%.
Housing Shortage to Bolster Residential Construction Growth
Residential construction posted a share of 32.4% during the review period, making it the second-largest construction market during the review period, growing at a CAGR of 1.9%. Australia’s population is growing by 1.2% annually, a higher rate than many developed countries. Such population growth, coupled with a severe housing shortage, is expected to drive the demand for the construction of homes over the forecast period.
Demand for Office Buildings on the Increase Following a Period of Economic Contraction
The commercial construction market recorded a growth of 2.3% during the review period, declining by 15.5% in 2010. Construction activity in the office buildings category decreased during the global financial crisis, prompted by contacting credit conditions which led to reductions in office building approvals. With economic conditions stabilizing and the oversupply of office building being worked off, the demand for office building is accelerating. As conditions improve, the commercial construction market is expected to grow at a CAGR of 3.43% over the forecast period.
More Materials reports by Timetric
Global Construction Industry Survey 2013–2014: Market Trends, Buyer Spend and Procurement Strategies in the Global Construction Industry by Timetric
SynopsisThe report provides data and analysis on contractor and developer expenditure, procurement and developments within the global construction industry The report includes key topics such ...
Research Facility Construction in Chile to 2017: Market Databook by Timetric
Research Facility Construction in Chile to 2017: Market DatabookSynopsisTimetric’s 'Research Facility Construction in Chile to 2017: Market Databook' contains detailed historic and forecast market value ...
Religious Building Construction in Chile to 2017: Market Databook by Timetric
Religious Building Construction in Chile to 2017: Market DatabookSynopsisTimetric’s 'Religious Building Construction in Chile to 2017: Market Databook' contains detailed historic and forecast market value ...
Institutional Building Construction in Chile to 2017: Market Databook by TimetricSee all reports like this >>
Institutional Building Construction in Chile to 2017: Market DatabookSynopsisTimetric’s 'Institutional Building Construction in Chile to 2017: Market Databook' contains detailed historic and forecast market value ...
More Australia Materials reports
Fence & Scaffolding Manufacturing in Australia - Industry Market Research Report by IBISWorld
Fence & Scaffolding Manufacturing in AustraliaThis industry manufactures metal fencing, gates and scaffolding. The industry includes products made from purchased metal and fencing and gates ...
Database of Building Material and Supplies Dealers in Australia by Global Research & Data Services
This company database includes the details of nearly 150 building material and supplies dealers in Australia. The database contains the following information about the companies:Company ...
Machinery and Scaffolding Rental in Australia - Industry Market Research Report by IBISWorld
Machinery and Scaffolding Rental in AustraliaCompanies in this industry supply industrial machinery, plant and equipment (except transport equipment) for hire or lease, without operators, from ...
Hardware and Building Supplies Retailing in Australia - Industry Market Research Report by IBISWorldSee all reports like this >>
Hardware and Building Supplies Retailing in AustraliaFirms in the industry retail hardware and building supplies to households, tradespeople and businesses. These retailers stock a range ...
More Australia reports
D&B Country RiskLine Report: Australia by Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...
Australian Cloud Computing Research Program 2011: A Strategic Analysis of the Australian Data Centre Infrastructure and Services Market by Frost & Sullivan
This report analyses end-user perception, adoption and usage of data centre infrastructure and services in Australia. Through detailed end-user interviews, the Australian data centre infrastructure ...
D&B Country Report: Australia by Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...
Australia: Country Profile by MarketLineSee all reports like this >>
INTRODUCTIONThis report provides a detailed analysis on Australia, providing an overview of its political, economic and business environment, represented both textually and in graph and ...
We can help you find what you need. Call us or write us:
Need help in your search?
- Global Construction Industry Survey 2013–2014: Market Trends, Buyer Spend and Procurement Strategies in the Global Construction Industry
- Construction in Brazil – Key Trends and Opportunities to 2017
- Construction in India – Key Trends and Opportunities to 2017
- Construction in Sweden – Key Trends and Opportunities to 2017
- Commercial Washrooms Market Report - UK 2013-2017 Analysis