Strong economic outlook for Australia’s construction industry in 2018
TPM Builders/blog/Strong economic outlook for Australia’s construction industry in 2018
QLD commercial construction companies will bring in the new year with a bang, as non-residential construction spending rises across Australia. Experts predict that retail, office, engineering and industrial sectors will perform strongly.
This year has been a mixed bag for Australia’s commercial building industry, when it comes to performance.
The tourism sector has thrived, while the non-residential building sector lagged behind – contracting by 1.5 per cent last year.
This seems like a thorn in the side at first glance, but the non-residential sector shows every sign of rebounding. Experts predict a strong construction industry economic outlook for 2018, thanks to the steady flow of new projects coming in.
The value of new projects approved for construction rose by 16 per cent in 2015, and again in 2016. This is one sign that the non-residential sector will pick up the slack left by the slumping residential industry.
Construction industry economic outlook for 2018: non-residential spending on the rise
The Australian Construction Industry Forum believes this figure will continue to rise by another four per cent in the new financial year, to reach more than $40 billion in 2020. Growth is predicted for the retail, industrial, office and accommodation sectors.
Office building hasn’t fared well over the past year, with the value of work falling by 21 per cent, but this activity is expected to rise over the next three years.
The retail sector is also set to recover from a lacklustre performance that’s been driven by dwindling sales, as retailers struggle to compete with online shopping. But the tide is expected to turn, as outlets create more spaces for food and leisure to attract customers.
This is expected to change, as outlets attract customers by creating more spaces for food and leisure services.
When it comes to industrial construction, 2018 promises to be a strong year for Queensland and the eastern states. Brisbane and other capital cities have already benefited from expanding transport and logistics services in the past year and this progress is on track to continue.
There’s been some decline in engineering construction, in terms of projects around resources, but 2018 will bring an influx of road and transportation projects.
Finally, strong tourism numbers will continue to benefit the hotels and accommodation industry, which translates to booming investment in resorts, casinos and public infrastructure.
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