Last year, different reports and indices indicated that the Australian construction industry continues to show promise and rise.
The surge in residential construction is strong and is foreseen to continue to boom; the rise in The Australian Industry Group and Housing Industry Association’s Performance of Construction Index did not only result from residential building boom, it has also resulted from the evident increase in commercial construction as told by Peter Burn, the AI Group head of public policy.
In 2015, Australia has reached its 23rd year of continuous economic growth. To keep striving for further development, the government is putting in an increased effort to drive productivity and increase innovation, which extends to the construction sector.
The Built Environment Faculty at the University of New South Wales recently hosted a Construction Leaders Forum, which was supported by both the Australian Constructions Association and the Australian Institute of Building, from which NSW Chapter President David Alessi will be speaking at the Sydney Build Expo. The forum was attended by 25 leaders from some of the largest contractors in Australia, who came together to discuss various ways to boost innovation and productivity within the industry.
A few ideas that were agreed upon include the need for increased predictability of delivery, a shift from the product-based delivery model to service-based, and increased usage of new technologies. There was also discussion on what the government, regulators and clients can do to help with increasing productivity.
Martin Loosemore, a Professor of Construction Management under the Build Environment Faculty at UNSW concluded from the discussions that there are “many opportunities to further federal government goals of enhancing growth through competition, innovation and entrepreneurship” within the construction industry.
A great piece of news to bring in the new year is that the construction boom is expected to continue into 2016. This is mainly due to continue low interest rates, since monetary policy settings are set to remain relatively unchanged from last year. New South Wales has been singled out as the state with the strongest economy, with the Housing Industry Association (HIA) expecting housing start numbers remain very strong in 2016 and relatively high for subsequent years, especially in residential construction.