The Australian construction industry is growing by leaps and bounds. As the nation emerges from the global pandemic, private and public investment is set to increase. Despite current industry struggles with rising costs and project delays, healthy medium to long-term growth forecasts remain intact. In an environment defined by new opportunities and rising competition, standing out from the crowd is more important than ever before.
The construction sector plays an integral role in the Australian economy. According to recent data from the Australian Industry and Skills Committee, the industry generates over $360 billion in revenue and produces around 9% of Australia's GDP. As Australia’s third-largest industry, the sector provides employment to almost 1.2 million people. However, despite the immense growth and diversity of the construction sector, contracts are often won by the same few companies.
To take advantage of new opportunities, you need to stand tall, build authority, and align your offerings with the needs and expectations of the market.
Recent growth in the industry has largely been driven by the infrastructure sector, including both federal and state projects. In June 2020, the national government announced 15 new infrastructure projects worth $72 billion. All of these projects will be fast-tracked as red and green tape is reduced in an effort to support over 60,000 jobs. Examples include large-scale road and rail projects, NBN upgrades, and multiple health and educational developments. In total, the federal government has committed $120 billion over the next decade.
Along with infrastructure, construction activities are also set to rise in the residential sector. The First Home Loan Deposit Scheme, the HomeBuilder program, and record low interest rates will continue to fuel new builds, renovations, and conversions across the nation. Whether operating as a sole trader, running a small business, or managing a national giant, construction companies of all sizes need to position themselves effectively to take advantage of these opportunities.
When you get it right, there are lots of rewards on the table. Based on the Q4 2021 Global Construction Survey from the Australian Construction Industry Databook, the industry is expected to grow by 10.6% to reach $163,797 million in 2022. This momentum is forecast to continue beyond 12 months, with a compound annual growth rate (CAGR) of 6.1% expected during 2022-2026. Over this time, construction output is expected to top $207,720 million.
With valuable contracts available, and long-term growth only expected to eclipse short-term trends, there's never been a better time to stake your claim. There are lots of ways to invest in the future of your construction company, from buying fresh equipment and hiring new people to training and accreditation programs.
At the end of the day, however, the most powerful thing you can do for your business is also the most simple. With a clear message and a value proposition, you can put your business front and centre and find your natural place above the noise of the market.
For more information and branding advice, contact article author and branding expert, Susan Jones, director of Living Lines branding agency on 0410 590 737.
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