30 November 2011
Whilst non-residential building activity remains sluggish, and there is anecdotal evidence of growing numbers of insolvencies amongst smaller contractors and trade contractors, there are looming skills shortages in other parts of the economy.
The private sector is yet to fill the gap left by the finalisation of the BER stimulus spending. Non-residential building approvals have been flat for most of 2011 compared to one year ago, indicating that the decline may have halted and a recovery is now about to begin. Uncertainty caused by Euro zone debt issues is not helping investment confidence.
At the same time engineering construction is forecast to peak at close to $120 billion in 2013/14, reflecting the expected commencement of a number of large resource sector projects. In Queensland, major LNG and coal seam gas developments are expected to boost mining construction, along with significant investments in associated infrastructure (port and rail).
Likewise, engineering construction in West Australia is expected to rise to a record level on the back of heavy investment in iron ore projects and the potential development of a Greenfield LNG facility at James Price Point. Road construction is expected to expand in line with heavy government investment in transport infrastructure, whilst ongoing work on the National Broadband Network (NBN) will also boost activity levels.
ACIF will release its first 2012 Forecasts in April 2012 at the ACIF Briefings around the country. Save the date and come along to get the most reliable information to plan over the short to medium term.
• 2 April 2012 - Brisbane
• 3 April 2012 - Sydney
• 4 April 2012 - Canberra
• 5 April 2012 - Melbourne
Registration will open approximately 6 weeks before the event, and advised via ACIF enews and on the ACIF website. Dates for September 2012 ACIF Briefings will be released before the end of 2011.
