The Australian construction industry experienced robust growth of 9 per cent in 2023, driven by increased investment across various sectors.
However, according to a report by ResearchAndMarkets.com, the industry’s growth is expected to decelerate to 2 per cent in real terms in 2024, primarily due to a decline in building permits, labour shortages, material supply constraints, and high construction costs.
Employment data from the Australian Bureau of Statistics (ABS) reveals a 1.9 per cent decline in the average number of construction workers in 2023, dropping from 1.27 million in 2022 to 1.24 million.
Additionally, the Australian Securities and Investments Commission (ASIC) reported a 42 per cent surge in insolvencies within the construction industry, rising from 1,793 cases in 2022 to 2,546 in 2023.
Despite the anticipated slowdown in 2024, the construction industry is projected to rebound with an average annual growth rate of 2.8 per cent from 2025 to 2028.
This growth will be fueled by investments in housing, renewable energy, health, education, and manufacturing sectors, as well as infrastructure development under the National Road Safety Action Plan (2023-25).
The National Road Safety Action Plan aims to reduce road accidents and casualties through various initiatives, including infrastructure planning and investment.
In February 2024, the Australian and Queensland governments jointly announced $511.5 million in funding for 71 safety upgrade projects across Queensland.
Furthermore, state government budgets have allocated significant investments for infrastructure development.
The Tasmanian government, for instance, has committed $2.2 billion for transport infrastructure over the next four years, $12.1 billion until 2027 for healthcare infrastructure upgrades, and $1.5 billion for the construction of 10,000 new social and affordable homes by 2032, with an additional 2,000 houses planned by 2027.
