Industry News
NAB forecasts a 7% peak-to-trough decline in capital city property prices, but economists warn this fall will not be sufficient to solve Australia’s deep-seated housing affordability crisis. Experts testify that resolving housing inequity will take approximately a generation and requires a sustained increase in housing supply to counter decades of price growth driven by financial […]
Perth-based manufacturer Bella Modular has abruptly ceased operations, informing customers that it cannot complete outstanding transportable home projects due to significant financial difficulties. The WA Consumer Protection Commissioner is urging affected clients to lodge formal complaints to assist in an investigation into potential insolvent trading and other regulatory breaches. Many customers have paid substantial deposits […]
Ecological thinning is being implemented in Western Australia’s South West forests to remove smaller trees and allow remaining ones to thrive, with the long-term goal of restoring old-growth characteristics. The strategy aims to combat water stress caused by a drying climate, as dense regrowth from historical logging competes for limited resources more aggressively than original […]
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The Construction in Australia
The Australian construction industry serves as a primary pillar of the national economy, contributing approximately 7% to 10% of Gross Domestic Product (GDP).
It is one of the nation’s largest employers, supporting roughly 9% of the total workforce. The sector is characterised by a high concentration of small businesses, with over 98% of firms employing fewer than 20 people, reflecting a highly fragmented yet vital ecosystem of specialist contractors and “tradies.”
Sector Breakdown and Market Share
The industry is broadly divided into three major segments:
Residential Building: Historically the largest segment by market share, accounting for roughly 38% of construction activity. This sector is currently facing a “tug-of-war” between high demand due to population growth and constraints such as interest rate fluctuations and labor scarcity.
Engineering and Infrastructure: This is the fastest-growing segment, projected to expand at a rate of over 6% annually. Growth is fueled by massive public investment in transport, telecommunications, and a significant pivot toward renewable energy projects like wind, solar, and pumped hydro.
Non-Residential Building: Comprising about 20% of the market, this sector is shifting focus. While traditional office space demand has fluctuated, “new economy” projects—specifically data centers and healthcare facilities—now drive substantial investment.
Workforce and Economic Dynamics
The labor market remains historically tight. While employment has grown by approximately 6% in recent years, the industry faces a looming shortfall of hundreds of thousands of workers to meet future housing and infrastructure targets.
Currently:
83% of the workforce is male, though government initiatives aim to increase female participation in frontline roles to at least 15%.
Wage growth in the sector has accelerated to nearly 5% annually, driven by the scarcity of specialist trades like high-voltage electrical and mechanical systems.
The industry is a significant driver of national wealth, with construction businesses paying out approximately 15% of the total private sector wage bill in Australia.
