Economic bright spots
amid the gloom
The Australian construction market has weathered with
remarkable resilience what could have been the worst
downturn in living memory – or has it?
news
;
Look around you
External factors should always be
considered when planning so that they
do not overwhelm future decisions.
The major factors include:
n The Economy: Growth period?
Interest rate trends? Exchange rate
movements?
n The Building Industry: Innovation
required? Ease of entry? Growth
prospects? Niche opportunities?
n The Competition: Established?
Market leaders? Targets?
n Business Risks: Bad debts? Theft?
Environmental hazards? Weather?
These may be managed by insurance
or risk management procedures.
n Evolution of Technology:
Obsolescence? R&D requirements?
n Political and legal issues: New
legislation? Policy changes?
Closer to home
Internal factors are more controllable
and should form a substantial portion
of your plan. These should include:
n Clear goals
n Clear people strategy
n Clear financial strategy
n Clear operational strategy
n Clear ethical guidelines
n Clear marketing strategy
Stay focused
Such planning of internal matters
will inherently assist you to deal with
unforeseen external factors and give
you the best prospects for success
during difficult economic conditions as
well as good times.
Planning requires research, analysis,
documentation and implementation.
Commitment to the task is difficult
but rewarding and help can be found
from a good accountant and advisor.
This will give you your best chance of
“riding out the recovery”.
More info: www.pitcher.com.au
BCI Australia, the leading provider of
project leads information in Australia
and Southeast Asia, has released its
semi-annual construction outlook report:
“Exploring the Opportunities – Australian
Construction Market Outlook 2010/2011”.
The report intends to shed light on how
important segments of the construction
market will emerge from the downturn,
and to provide tangible information for
decision makers to act upon.
What structural and cyclical
weaknesses did the stimulus packages
obscure, and will these weaknesses of
demand catch up with us now that the
public funding has run out?
And importantly, looking ahead, what
are the opportunities?
As the nation’s leading construction
research organisation, BCI has set out to
identify the lucrative market segments,
the promising pockets of demand that
can keep builders, subbies and suppliers
going even as the post-BER hangover
sets in. By analysing close to 300,000
projects BCI endeavours to assist
decision makers to plan intelligently for
what the new fiscal year has in store.
Some of the findings:
n BCI expects the total construction
projects market to grow at a rate of
3. 9 per cent in the upcoming fiscal year.
n Infrastructure construction
experienced reasonable growth in
2009/2010 (+ 8.4 per cent) buoyed by
increased stimulus funding under the
government’s substantial infrastructure
programs and the resurgence of
the resources boom. This strong
performance is set to continue in
2010/2011 with + 11 per cent growth
forecast.
n Building construction is slated to
have declined in 2009/2010 as much as
- 18.1 per cent against the prior year.
In 2010/2011, building construction
can be expected to travel sideways
(-2.0 per cent).
n The value of educational projects
commencing construction in fiscal year
2009/2010 according to BCI research was
a stunning $9.178 billion, 27 per cent of
the total value of building construction,
aided significantly by the government
sponsored stimulus program.
Building starts are in the offing,
but some states lead the way.
