RTTNews - Monday, the latest Australian Industry Group/Australian Constructors Association Construction Outlook survey revealed that the value of engineering and commercial construction work is forecast to fall significantly to a 2.3% growth rate in 2009, following a 9.9% increase in 2008.
Due to a reduction in investment in the resources sector, declines in mining related infrastructure projects, and weaker private sector commercial building activity, the value of engineering and commercial construction work is expected to drop by another 2.4% in 2010.
However, total value of construction work done by the private sector is expected to remain at a high level, with a forecast value of A$91.2 billion in 2010.
ACA President, Wal King, said, The significant slowdown in construction growth during 2009 and the contraction forecast for 2010 will place significant pressures on firms already facing intense competition for available work and tighter profit margins.
The survey also highlighted the importance of the Federal Government's stimulus package. Ai Group Chief Executive, Heather Ridout said the timing of the recovery will be all important as work-in-hand volumes diminish.
In his annual budget on May 12, Treasurer Wayne Swan announced an A$22 billion investment in infrastructure to improve the quality, adequacy and efficiency of transport, communications, energy, education and health sectors.
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