BCI Media Group has released their annual construction outlook report, titled Coping in a two speed economy - Australian Construction Market Outlook 2012/2013.

The report provides critical analyses on the current state of the construction industry in Australia detailing information on construction volumes by key sectors and states.

The report comes from analysing 350,000 projects, with BCI Media Group claiming they are able to identify the market segments set to take off, those set to trend sideways and areas that may fall over in the next twelve months.

Damian Eastman, chief operating officer BCI Australia & New Zealand, commented:

“For the first time we are seeing real signs of the effect of the mining boom in areas outside of mining, with the emergence of a two speed economy in building construction.

“Queensland and Western Australia are the only two states predicted to have growth in building construction next year.

“The challenges for our industry over the next twelve months will be to remain optimistic in the face of negative market sentiment & the availability of finance.”

Key findings from the report:

They expect the total construction projects market (building and infrastructure projects, excluding the detached housing sector as well as mining, oil and gas) to grow 4.8 per cent in the upcoming 2012/2013 financial year. This compares with a rise of 4.05 per cent for the current fiscal year ending 30 June 2012.

Infrastructure construction (including transport and utilities construction) is looking very positive in 2012/2013 with a growth rate of 14.15 per cent predicted after a slightly smaller than expected rise of 5.5 per cent this fiscal year.

Construction sentiment in early 2012 continued to decline. Availability of finance remains the biggest detractor of growth, however negative business sentiment is now the second biggest issue holding back the construction sector.

Amongst the states there are significant differences in the outlook for 2012/2013 in terms of non-residential and multi-residential construction. BCI expects the following development of construction commencements:

  • NSW: - 1.0 per cent

  • QLD: 3.4 per cent
  • VIC: -2.9 per cent

  • SA:- 31.9 per cent

  • WA: 3.4 per cent

The report will be released at the BCI Breakfast Briefings to be held from the 30th April to the 3rd May 2012 across Australia in Brisbane, Sydney, Melbourne & Perth.