IPWG Update: Overview of Construction Sector

SAE-A Newsletter - June, IPWG update: Overview of Health Sector

by: Peiman Rajaiee - Manager, IPWG

Overview
The construction sector includes firms primarily involved in the construction of buildings, roads, railroads, irrigation projects, harbour or river works, water infrastructure, gas infrastructure, sewerage infrastructure, stormwater drains, electricity infrastructure, other transmission lines, pipelines, oil refineries and civil engineering projects. It also includes firms that carry out repairs and renovation, mine site preparation, demolitions or excavations and the installation of utilities.

Sector Information
Based on IBISWorld, on March 2015, more than 1 million people were employed in the sector and sector’s revenue is projected to increase by an annualised 1.5% over the five years through 2014-15, to $341.2 billion. With almost 330,000 businesses operating in the industry and the top four players commanding less than 10% of revenue, the sector is regarded as one of the most fragmented with diversified range of products and services in Australia. Industry Products and services can be listed as below: (IBISWorld)

Industry Products
• Heavy industry and civil engineering
• Residential construction
• Non-residential building
• Building completion services
• Building structure services
• Installation trade services
• Site preparation and other construction services

Industry Activities
• General construction
• Construction trade services
• Installation trade services
• Residential construction
• Non-residential construction
• Site preparation and other construction
• Building completion services
• Building structure services
• Heavy industry and non-building construction

Main Projects
• Apartments
• Rail projects
• Commercial Construction
• Oil refineries and oil/gas processing plants
• Telecommunications
• Roads & Freeways
• Industrial plants
• Civil Projects
• Sewerage, drainage & water storage
• Pipelines
• Electricity Generation & Supply
• Chemical, petro-chemical plants
• Mining, mineral processing plants

Statistics, Trending and History
Picking up of apartment building projects as well as rail and commercial construction is set to help the industry holding up through 2015.

Rail projects, roads and freeways, apartments, telecommunication, and commercial construction divisions’ pickup on 2016 will further boost to help the sector holding up strong in 2016 despite other divisions such as heavy industry construction continue to decline.

Total employment in the sector is expected to recover in 2016 after a year of slight decline in 2015, as a results of employment raise in non-residential construction division which reflects influence of raising infrastructure work.

All statistical data are courtesy of: IBISWorld and AiGroup

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