ACIF forecasts predict industry growth

ACIF forecasts predict industry growthPositive outlook for work demand across all sectors, and for most areas of the industry, are reported in the latest Australian Construction Industry Forum forecasts.The ACIF forecasts, released this week, record a 3.4 per cent fall in total construction expenditure, from $231 billion spent in 2013-14 to $224 billion forecast to be spent in 2014-15. This includes all work across residential and non-residential building, as well as engineering construction.However, residential building alone is expected to increase to $82 billion from $74 billion, an increase of 11.2 per cent.ACIF says non-residential building has fallen 1.3 per cent over the 12 months to settle at $35 billion, and will drop to $34 billion in 2016-17. However, growth is forecast after 2017.The biggest fall by sector is for engineering construction, which ACIF says is “no surprise” as the sector “settles from the mining construction boom”. The sector is down 13.9 per cent from $122 billion in 2013-2014.ACIF releases rolling ten-year forecasts for work demand, labour requirements, costs of construction and major projects twice a year, outlining demand across residential, non-residential building and engineering construction in Australia. Residential building activity in NSW is expected to continue to grow over the medium term, largely offsetting a decline in engineering construction.In Queensland, industrial and other commercial activity has grown over the decade, but non-residential construction is expected to weaken, reflecting a decline in activity related to the mining investment boom.In Victoria, leading indicators suggest concerns about market saturation for apartments and townhouses is unfounded, with plans to build more, and increase the supply of new houses.Read more about the forecasts at the ACIF website.