Construction Australia: What's The Forecast For 2021?

Australia based construction businesses have certainly felt the effects of the coronavirus pandemic, but how is 2021 shaping up for this important industry?

The construction industry might not have felt the immediate force of Covid-19 lockdowns as much as other sectors like tourism or hospitality, but the effects may arguably have a longer impact. 

While widespread job losses, anxiety, low productivity and depleted morale certainly haven’t been exclusive to this sector, construction in Australia plays a vital role in supporting our national economy. While traditionally bringing in over $360 billion in revenue and producing around 9% of Australia's Gross Domestic Product, how long can this sector handle the pressure for - and what can construction focussed businesses expect for next year?

Construction Australia: Predictions For 2021

In Australia, construction is considered an essential service. Although operators must now follow specific regulations thanks to Covid-19 that may hinder productivity, we’re able to continue operating as long as social-distancing occurs. Needless to say, when compared to say an office environment, this is significantly easier to do so on a construction site. 

Thankfully, the robust pipeline of engineering and infrastructure projects should be enough to make up for the current shortfalls in non-residential and residential construction, further down the track. Government issued economic recovery plans such as the HomeBuilder Grant and JobKeeper program have worked wonders in terms of minimising the fallout, but what can we expect the Australian construction industry to look like as we head into next year?

Supply Chain Diversity - Due to factory shutdowns in China and other nations, there has been disruptions in the importation of building materials. While this has seen costs soar by up to 20%, it’s also forced Australia to stop putting all of their eggs into one trade basket.  

Health And Safety - Do you know many tradesmen that actually take a sick day if they need one? We certainly don’t, but new regulations have forced Australia’s construction workers to take potential symptoms seriously, and in turn improve the health and safety of job sites. 

Modular And Prefab Buildings - With many Australians moving back home - or working from home - the building and construction industry has seen a spike in demand for dwellings that are both affordable, portable and flexible. 

Engineering Construction - The engineering sector is benefiting from significant levels of government and business investment in transport and mining projects, and is likely to help shield the wider sector from the reduction in new residential and commercial builds. 

More Training - Did you know that the construction industry employed 9% of all Australians? With more incentives for businesses to take on apprentices and young people as new employees, we’re likely to see a new generation of tradesmen (and women) in 2021. 

When it comes to navigating your way through business in the Australian construction sector, it ultimately comes down to how willing you are to adapt and change in lieu with the times. Businesses who are able to do so will not only survive, but thrive. 

Does Your Construction Business Need Some Financial Advice?

Here at Muro, the way that we have developed our business support services for our family of clients helps them to really understand the numbers that we prepare. In turn, this allows them to focus on the things that they do best - great products, great services and ultimately, continuing to run a great business without sweating over the numbers. 

We focus on getting our clients to look to the future of their businesses instead of taking a reactionary approach, and consider every business owner to be an entrepreneur. If you’re ready to think big and to get your financial ducks in a row for 2021, please get in touch with us today at award winning Muro to ensure that you’re on the right path for success.