(MENAFNEditorial)
Australia's construction sector will slow in 2015 with growth being weighed down by a slowdown in the mining sector a lack of competitiveness and political headwinds . Growth however remains at a respectable rate supported by the housing sector - fuelled by record-low interest rates - and the government's emphasis on developing the country's infrastructure.
Key Trends And Developments
* We remain positive over growth for the sector in 2015 although our 3.0% growth forecast for the construction sector is still lower than the 10-year historical average of 4.4% (between 2004 and 2013).
* Our slightly tempered outlook is underpinned by a slowdown in Australia's mining sector which has a negative impact from a slowdown in China resulting in capital expenditure cuts by major Australian miners. A lack of competitiveness in Australia's engineering construction projects due to costs and an unfavourable foreign exchange environment will also deter foreign investment.
* The state elections have also cast doubt on the federal government's efforts at privatising various public assets with the Labor party - being very much against the asset sale programme - now having more political clout in states such as Queensland and Victoria.
* Longer-term growth drivers will remain and we believe the housing market will prop up construction activity. This is also fuelled by record-low interest rates with the Reserve Bank of Australia cutting rates by 25 basis points to 2.25% in February 2015.
* Despite greater political risks we still expect a heavy emphasis on developing the country's infrastructure. The sector's growth will also be supported by a strong project pipeline.
* Beyond 2015 we expect a key growth area to be in road construction as supported by the government's push for road works through the AUD40bn (USD31.1bn) road infrastructure package. This is reflected in our forecasts with the segment accounting for more than 56% of the transport...
Full Report Details at
- http://www.fastmr.com/prod/957398_australia_infrastructure_report_q2_2015.aspx?afid=101
The Australia Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects including transportation and logistics by land sea and air; power plants and utilities and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Australia Infrastructure Report provides industry professionals and strategists sector analysts investors trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Australian infrastructure and construction industry.
Key Benefits
* Benchmark BMI's independent infrastructure industry forecasts for Australia to test other views - a key input for successful budgetary and planning in the Australian infrastructure market.
* Target business opportunities and risks in the Australian infrastructure sector through our reviews of latest industry trends regulatory changes and major deals projects and investments in Australia.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI’s key industry forecasts views and trend analysis covering infrastructure and construction regulatory changes major investments and projects and significant national and multinational company developments. These are broken down into construction (social commercial and residential) transport (roads railways ports airports etc) and energy & utilities (powerplants pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths weaknesses opportunities and threats within the infrastructure and construction sectors and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators supported by explicit assumptions plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads railways airports and ports and the energy and utilities sub-sectors of power plants and transmission grids oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport utilities commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points. These provide indices of highest to lowest appeal to investors with each position explained.
Market Overview
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry including the key financial figures from some of the largest players in the sector.
Company Profiles*
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