Crane index reveals construction strength

Crane index reveals construction strengthThe number of cranes operating in Australia’s key cities increased by 32 per cent in the past six months, according to the Rider Levett Bucknall Crane Index for Q2 2015.The Rider Levett Bucknall (RLB) Crane Index, which counts the number of cranes erected in major cities in Australia on a twice-yearly basis as way to assess the health of the construction industry, found that 427 cranes were sighted in Q2 2015, up from 324 cranes in Q3 2104. As 308 cranes were sighted 12 months ago, this represents an increase of 39 per cent over the past year.In the past six months, 256 new cranes have been erected and 168 have been removed from sites nearing completion. Of those, 205 cranes were erected on residential project sites and 101 were removed – evidence of the strength of multi-level residential construction.Although the index provides a simplistic measure only, it nevertheless shows the construction industry to be good in health, particularly in the key markets of Sydney, Melbourne, Brisbane and Perth. Sydney recorded a net gain of 43 cranes in the period from Q3 2014, with Brisbane recording a net gain of 23, Melbourne 17 and Perth 3. No capital city recorded a net reduction in crane numbers lower than -2.The RLB research states that market demand for housing stock and steady or declining interest rates are making the property sector attractive to both investors and owner-occupiers.An increase in the number of cranes on retail sites from five to 14 in the past six months comes on the back of increased consumer spending of $218 billion in Q4 2014, up 1 per cent from Q3 2014.A minor decrease in the number of cranes associated with the education, health and civic sectors is attributed to elections having taken place in NSW, Queensland, Victoria and SA, which has impacted on the commencement of new projects in those sectors.To download the report, click here.