Australia Construction Market Size, Trends and Forecasts by State, Territory and Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecasts, 2022-2026

Pages: 75 Published: December 29, 2022 Report Code: GDCN1054MR

The construction industry in Australia is expected to shrink by 0.4% in real terms in 2022 and 2.7% in 2023, owing to headwinds caused by rising inflation, high construction material prices, rising interest rates, supply chain disruptions, and continued weakness in the residential construction sector. According to the Australian Bureau of Statistics (ABS), the producer price index of input prices to the residential construction industry rose by 16.2% year on year (YoY) in the first three quarters of this year. Labour shortage is another significant factor that is leading to cost overruns and construction delays. According to Infrastructure Australia, which is the independent statutory body advising the federal government on infrastructure, as of October 2022 public infrastructure projects (including small capital projects) faced a shortage of 214,000 skilled workers. It further estimates labour demand to peak to 442,000 in 2023, which is more than double the projected available supply.

The industry is expected to rebound at an annual average growth rate of 3.1% from 2024 to 2026, supported by the government’s continued focus on infrastructure development. The Albanese government released its federal budget for the Financial Year (FY) 2022/2023 (July 2022 to June 2023) in late October 2022. The budget includes significant allocations for the transport infrastructure, energy, housing, manufacturing, and digital infrastructure sectors. As part of the FY2022/2023 Budget, the government announced an allocation of AUD25 billion ($18.4 billion) in clean energy spending and AUD9.6 billion ($7.1 billion) for vital infrastructure projects, over the next four years. Additionally, it also announced a plan to build one million new homes over a period of five years, starting from mid-2024. In another positive development, the government introduced legislation in November 2022 to establish the AUD15 billion ($11 billion) National Reconstruction Fund (NRF), which is one of the government’s key election commitments. The NRF will provide financing to projects across seven priority areas, with an aim to diversify and transform the Australian economy. According to Infrastructure Australia, the five-year pipeline of major public infrastructure projects is valued at AUD237 billion ($165.6 billion), as of October 2022; this is an increase of AUD15 billion ($10.5 billion) over the last 12 months.

The report provides detailed market analysis, information, and insights into the Australian construction industry, including –
– The Australian construction industry’s growth prospects by market, project type, and construction activity
– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Australian construction industry
– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Australia. It provides –

– Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Australia, featuring details of key growth drivers.

– Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

– Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

– Listings of major projects, in addition to details of leading contractors and consultants

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– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

– Outlook

– Latest news and developments

– Construction Projects Momentum Index

4.2 Commercial Construction

– Outlook

– Project analytics

– Latest news and developments

4.3 Industrial Construction

– Outlook

– Project analytics

– Latest news and developments

4.4 Infrastructure Construction

– Outlook

– Project analytics

– Latest news and developments

4.5 Energy and Utilities Construction

– Outlook

– Project analytics

– Latest news and developments

4.6 Institutional Construction

– Outlook

– Project analytics

– Latest news and developments

4.7 Residential Construction

– Outlook

– Project analytics

– Latest news and developments

5 Construction Outlook – States and Territories

5.1 New South Wales

5.2 Victoria

5.3 Queensland

5.4 South Australia

5.5 Western Australia

5.6 Tasmania

5.7 Northern Territory

5.8 Australian Capital Territory

6 Key Industry Participants

6.1 Contractors

6.2 Consultants

7 Construction Market Data

8 Appendix

8.1 What is this Report About?

8.2 Definitions

8.3 CRI Methodology

8.4 GlobalData Construction

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List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: Australia, Key Economic Indicators

Table 3: Australia, Commercial Construction Output by Project Type (Real % Change), 2017-26

Table 4: Australia, Top Commercial Construction Projects by Value

Table 5: Australia, Industrial Construction Output by Project Type (Real % Change), 2017-26

Table 6: Australia, Top Industrial Construction Projects by Value

Table 7: Australia, Infrastructure Construction Output by Project Type (Real % Change), 2017-26

Table 8: Australia, Top Infrastructure Construction Projects by Value

Table 9: Australia, Energy and Utilities Construction Output by Project Type (Real % Change), 2017-26

Table 10: Australia, Top Energy and Utilities Construction Projects by Value

Table 11: Australia, Institutional Construction Output by Project Type (Real % Change), 2017-26

Table 12: Australia, Top Institutional Construction Projects by Value

Table 13: Australia, Residential Construction Output by Project Type (Real % Change), 2017-26

Table 14: Australia, Top Residential Construction Projects by Value

Table 15: Australia, Key Contractors

Table 16: Australia, Key Consultants

Table 17: Australia, Construction Output Value (Real, $ Million)

Table 18: Australia, Construction Output Value (Nominal, AUD Million)

Table 19: New South Wales, Construction Output Value (Real, $ Million)

Table 20: New South Wales, Construction Output Value (Nominal, AUD Million)

Table 21: Victoria, Construction Output Value (Real, $ Million)

Table 22: Victoria, Construction Output Value (Nominal, AUD Million)

Table 23: Queensland, Construction Output Value (Real, $ Million)

Table 24: Queensland, Construction Output Value (Nominal, AUD Million)

Table 25: South Australia, Construction Output Value (Real, $ Million)

Table 26: South Australia, Construction Output Value (Nominal, AUD Million)

Table 27: Western Australia, Construction Output Value (Real, $ Million)

Table 28: Western Australia, Construction Output Value (Nominal, AUD Million)

Table 29: Tasmania, Construction Output Value (Real, $ Million)

Table 30: Tasmania, Construction Output Value (Nominal, AUD Million)

Table 31: Northern Territory, Construction Output Value (Real, $ Million)

Table 32: Northern Territory, Construction Output Value (Nominal, AUD Million)

Table 33: Australian Capital Territory, Construction Output Value (Real, $ Million)

Table 34: Australian Capital Territory, Construction Output Value (Nominal, AUD Million)

Table 35: GlobalData Construction Market Definitions

Table 36: Risk Dimensions

Table 37: Ratings, Scores and Definitions

List of Figures

List of Figures

Figure 1: Australasia, Construction Output (Real % Change), 2020-26

Figure 2: Australia, Construction Output by Sector (Real % Change), 2020-22 and 2023-26

Figure 3: Australia, COVID-19 Confirmed Cases

Figure 4: Australia, Risk Summary

Figure 5: Australia, Risk Regional Comparison

Figure 6: Australia, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2017-26

Figure 7: Australia, Construction Output Value, by Sector (Real, $ Million), 2017-26

Figure 8: Australia, Total Value of Construction Work Done, AUD Billion Chain Volume Measure

Figure 9: Australia, Total Value of Building Construction Works Done, % Change YoY

Figure 10: Australia, Private Gross Fixed Capital Formation, Seasonally Adjusted Chain Volume Measures, in AUD Billion, % Change YoY

Figure 11: Australia, Total Value of Buildings Approved (Seasonally-Adjusted Terms, % Change YoY)

Figure 12: Australia, Construction Sector Jobs, in Thousands

Figure 13: Australia, Construction Wage Price Index, 2008-2009 = 100, Hourly Pay (Excluding Bonuses)

Figure 14: Australia, Construction Projects Momentum Index

Figure 15: Region, Construction Projects Momentum Index

Figure 16: Australia, Commercial Construction Output by Project Type (Real, $ Million), 2017-26

Figure 17: Australia, Commercial Construction Projects Pipeline, Value by Stage ($ Million)

Figure 18: Australia, Value of Commercial Buildings Approved, % Change YoY

Figure 19: Australia, Short-Term Visitor Arrivals (in Thousands)

Figure 20: Australia, Tourism Sector Jobs, in Thousands

Figure 21: Australia, Retail Trade Turnover (in AUD Billion), Seasonally Adjusted

Figure 22: Australia, Industrial Construction Output by Project Type (Real, $ Million), 2017-26

Figure 23: Australia, Industrial Construction Projects Pipeline, Value by Stage ($ Million)

Figure 24: Australia, Total Value of Buildings Approved for Factories and Other Secondary Production Buildings, in AUD Million

Figure 25: Australia, Total Value of Mineral Exploration (in AUD Million)

Figure 26: Australia, Performance of Manufacturing Index (PMI), Seasonally Adjusted

Figure 27: Australia, Total Exports (in AUD Billion)

Figure 28: Australia, Number of New Vehicle Sales

Figure 29: Australia, Infrastructure Construction Output by Project Type (Real, $ Million), 2017-26

Figure 30: Australia, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)

Figure 31: Australia, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2017-26

Figure 32: Australia, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)

Figure 33: Australia, Total Value of Petroleum Exploration (in AUD Million)

Figure 34: Australia, Total Value of Natural Gas Exports (in AUD Million)

Figure 35: Australia, Institutional Construction Output by Project Type (Real, $ Million), 2017-26

Figure 36: Australia, Institutional Construction Projects Pipeline, Value by Stage ($ Million)

Figure 37: Australia, Value of Buildings Approved for Education, Health, and Religious Purpose, in AUD Billion

Figure 38: Australia, Residential Construction Output by Project Type (Real, $ Million), 2017-26

Figure 39: Australia, Residential Construction Projects Pipeline, Value by Stage ($ Million)

Figure 40: Australia, Total Value of Residential Building Construction Work Done, AUD Billion Chain Volume Measure

Figure 41: Australia, Total Number of Dwelling Units Approved

Figure 42: Australia, Number and Value of Owner Occupier First Home Buyer Loan Commitments, % Change YoY

Figure 43: Australia, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 44: Australia, Headquarters of Key Consultants (% of Total Project Pipeline)

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