Construction industry will take a u-turn in 2016: AIG outlook report

The latest Construction Outlook survey conducted by the Australian Industry Group in association with the Australian Constructors Association shows that the construction industry will take a u-turn towards new standard of growth and development in 2016.

The report suggested establishment of more multi-storey apartment buildings across Australia in 2016 along with increased revenue generation from infrastructure projects. It indicated an unexpected growth of the construction sector in the upcoming years.

The turnover for the construction industry has witnessed severe downfall in the past three years. However, the sector is expected to increase the value of work by 4.7 percent in the financial year 2016-17. But prior to the hike in the turnover, the company is anticipated to suffer 5.2 percent loss in the present fiscal year 2015-16 along with constant downfall in resource projects.

The survey also indicated the growth of multi-level apartment blocks, particularly in Sydney, Melbourne and Brisbane. “It’s a promising outlook of a more rapid rebound than had previously been expected,” AIG chief executive Innes Willox said in a statement. The growth of apartment buildings is expected to reach 13.7 percent in 2015-16, and another 8.1 percent in 2016-17.

“The lift in anticipated for engineering construction in 2016-17 is despite expectations of further contraction in mining and resource projects and is driven by strong expectations for a pick-up of transport and communication projects,” Willox said. “With commercial construction anticipated to lift over the next two years, and with the apartment building boom expected to continue, the outlook is for the most balanced pattern of growth for many years.”

The AIG outlook report also stated that significant increase in the rail and roadways projects is expected in 2016-17, and which will drive a 4.8 percent hike in the value of work of the construction sector.

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