May 09, 2017

Bankwest report reflects stalled construction sector

Bankwest report reflects stalled construction sector

Construction in Australia is expected to show a 0.4 per cent decline for  2016-17, according to an Australian industry overview published by Bankwest in its Business Insights series.

The residential construction sector and the construction services sector (bricklaying, roofing, plumbing, electrical and painting and decorating services) are still feeling the after-effects of the GFC and the end of the mining boom, it says.

But commercial construction is expected to bounce back from its 2016 decline to remain steady and increase by 0.8 per cent for 2017.

Bankwest executive general manager, business banking Sinead Taylor said the Industry Overview Report identified important factors at play in the state of the industry.

“Undoubtedly the report shows that outside of the non-residential sector the construction industry is still doing it tough,” she said.

Bankwest executive general manager, business banking Sinead Taylor.

“This report helps to shine a light on the key factors that are influencing the sector.”

Housing construction revenue is anticipated to fall by 6.2 per cent in the year ending June 2017.  Mining regions will also see reduced housing construction, as the population in these regions falls. Multi-unit apartment revenue is expected to fall by 17.3 per cent over the same period, as new construction over the previous five years has exceeded demand requirements.

Ms Taylor said the report had been produced as part of Bankwest’s ongoing commitment to offer insights on economic data, trends and issues of value to its customers, businesses, communities and policy makers.

 

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