Australia’s Pandemic Construction Boom: What’s The Future Predictions?
After Australia’s pandemic construction boom, what’s next on the horizon for the industry?
Managing the challenges of the pandemic has catalysed widespread changes in the way the industry operates, leading to innovation and diversification.
Contractors have had to try and complete existing projects while simultaneously protecting staff onsite and complying with government regulations and travel restrictions. Supply chain interruptions and project suspensions have exacerbated these challenges.
Despite the pressure, developers, architects and contractors have remained agile and adapted project timeframes.
In this blog, we take a look at what the construction boom has done for Australia, the challenges faced by the industry and how companies can capitalise in 2022.
Shock Boom Boosts Construction Industry
As reported in the Financial Review last year, Australia’s construction sector boomed despite the challenges posed by the pandemic. Total dwelling approvals are up over 23 per cent year-on-year according to the Australian Bureau of Statistics’ most recent figures, with private housing approvals 42 per cent higher than in August 2019.
However, there are some curveballs in the pipeline. With strong inflation, interest rate rises, supply chain squeezes, low migration rates, and worker shortages, the impacts on the Australian construction industry are hard to predict.
The new normal has embraced flexible working arrangements, meaning that demand for commercial and traditional retail space will likely be very soft this year.
However, this downturn in activity may be minimised — economic and social infrastructure is expected to rise higher on the agenda for federal and state governments as elections loom.
This presents opportunities for the likely announcement of further new major infrastructure projects to add to the already burgeoning pipeline.
Coupled with the high demand for tradespeople like plumbers, bricklayers and electricians, builders will be busier than ever. The home renovation space has seen particularly strong growth thanks to government incentives such as the Home Builder grant.
Capitalise On The Construction Boom With iTWO cx
The construction boom has been an unexpected but welcome outcome of the pandemic for many in the industry. However, with any construction boom comes the challenge of meeting high demand and managing costs.
iTWO cx is a cloud-based software that was designed specifically for construction projects. It helps you track project costs, schedule, and performance so you can make better decisions about where to allocate your resources.
Contact us today to learn more about how our software can help you. Our team will explain how our innovative system can uncover value across your entire project lifecycle.