The Australian Institute of Quantity Surveyors (AIQS) has unveiled its 2024 construction forecast, at a time when the entire industry finds itself at a crossroads.
While challenges firmly remain on the horizon, there is cause for optimism via the economy charting a more stable course. A reduction in inflation and a robust labour market has given the AIQS a positive outlook on the future.
The federal government's hefty infrastructure spending injects momentum into a number of sectors, while easing housing affordability is priority one across all levels of government. State governments' efforts to streamline approvals promise efficient project liftoff and reduced delays.
The industry's tech embrace, with prefabrication, modular construction, and digital twins taking centre stage, fosters innovation and propels specific segments toward exciting growth frontiers. These factors collectively paint a vibrant picture for the construction landscape, paving the way for a future teeming with activity and progress.
Yet, the bright horizon isn't without its looming storm clouds. Within the industry itself, challenges lie in wait. Soaring labour costs and a lack of skilled workers will strain budgets. Government regulation will weigh heavily on construction companies, especially smaller players, hampering efficiency and profitability.
Rising material costs and interest rates cast a shadow on project viability, demanding innovative solutions to keep them afloat. The crossroads of climate change necessitates a shift in mindset, with resilient infrastructure requiring additional investment and new construction practices, while sustainable demands will throw another theoretical curveball.
Despite the concerns, the AIQS says 2024 is forecast to bring a cautious growth and optimism around a more robust future.
