Booming Engineering Construction to Top residential Sector

By: Master Builders Australia  13-Oct-2005
Keywords: Engineering Construction Growth

Statement by Peter Jones, Chief Economist Sustained growth in engineering construction means the value of work done in that sector will soon exceed residential work done, according to peak building and construction industry organisation, Master Builders Australia. Mr Peter Jones, MBAs Chief Economist said, We are forecasting further growth in engineering construction, with work done in calendar 2005 expected to reach $40 billion, slightly more than residential work done as the modest cyclical downturn in housing runs its course. Mr Jones said, Encouragingly, over the past year there has been a sharp increase in the amount of engineering work yet to be done, notably in Victoria, Queensland, and particularly in Western Australia associated with the resources boom. He said, Growth in 2004-05 was driven by the private sector, particularly in construction on roads and resources-related oil, gas, minerals and other heavy industry. Not surprisingly there has been strong investment in Western Australia as a result of the minerals-related boom, but New South Wales is also punching above its weight due to strong construction on roads, bridges, railways and harbours, he concluded. Seasonally adjusted, the chain volume of engineering construction work done rose by 0.6 per cent in the June quarter. Work done for the private sector increased by 2.4 per cent and work for the public sector fell by 1.8 per cent, in the June quarter. Engineering growth of 12.3 per cent was recorded in 2004-05. Since 2001-02, engineering construction work done has increased by more than 30 per cent in real terms. The value of engineering work yet to be done stood at $19.8 billion in the June quarter 2005, up $6.5 billion on a year ago.

Keywords: Engineering Construction Growth

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