A few weeks ago, an updated version of the Australian Construction Industry Forum forecast was released, and it revealed a few unexpected changes. The main thing that was revealed was the fact that the structural changes in the economy have had a huge effect on employment within the construction industry.
It was not long ago that residential building was the main source of jobs within the construction industry. However, the facts and figures show that this is now not the case, and that the main source for employment within the construction sector is engineering construction. Obviously, this is going to have a huge impact on millions of people. Unfortunately, the ACIF have stated that it seems unlikely that the non-residential building sector will recover for at least a few years. This sector was majorly affected by the global financial crisis only four years ago.
The vast majority of the major cities are showing no signs of improvement right now, minus a few like Brisbane and Perth where new opportunities are being made available. So, what does this shift mean for people within the industry? Well, there are a few different aspects to consider. First of all, there is the fact that builders are going to find it incredibly difficult to gain employment. The builders that are able to find work will find that prices are falling, so income rates are going to be significantly lower.
Trades are also going to be badly hit. For example, companies that supply civil engineering equipment are going to find their sales going downhill rapidly as the need for such equipment lessens. The impact that this sudden shift is going to have on the construction industry is certainly alarming to say the least.
Whilst this is sudden, it was certainly not unexpected. As mentioned early, it could take at least two years for the construction industry to start to recover, so it is likely that industry workers are going to suffer significantly in the coming months.Read More