Construction services continue to enjoy high demand in Australia thanks to immigration-led population growth. At present, there remain extremely high levels of activity in the civil engineering and construction sector. The outlook for new home building remains healthy but some analysts warn of the risk of sharper than expected slowdowns in building and construction in 2017, exacerbated by the deterioration of global economic sentiment.
Underlying challenges remain in productivity, profitability, performance, and sustainability and companies that re‑imagine their business processes to address these issues can place themselves in a position for significant growth.
Factors affecting the efficiency of the Australian construction sector include increasing project costs and complexities, rising metal and oil prices, a strong Australian dollar and rising interest rates, and a saturated market with heavy competition, thanks to low entry barriers. Unfortunately, many struggling construction companies find themselves unable to raise the profit necessary to invest in innovation and critical technology.
Australian construction businesses have also been suffering from productivity stagnation for many years and now also face a skilled labour shortage. Increasing project complexity together with decreasing experience is a risk multiplier, risking deliverable delays, employee safety, and quality problems.
Another challenge for the building and construction industry is the need to embracing disruptive digital technologies. Digitisation of the construction industry is inevitable, as it is in most industries, and companies must join the digital future or risk being left behind.
We assist businesses by reviewing policies and procedures to ascertain where cost-cutting efficiencies can be made, where the application of proven technology and best practices will deliver reliable outcomes and improve margins and profitability.