The construction sector is one of Australia’s largest employers of engineers, and a major driver of engineering activity. Employees in this sector are involved in the construction and improvement of residential properties and non-residential developments such as commercial buildings. While residential building has always been a significant contributor to the sector, over the past five years residential work has risen as a share of work done. However, the past year has seen significant growth in non-residential building, providing a renewed source of growth.
The diverse range of industries, businesses and individuals that employ construction services tends to reduce volatility in the sector, with weak demand from one group often met by stronger demand in others. The sector is also heavily reliant on favourable economic data, with property prices, business spending and interest rates all impacting demand for construction to various degrees. Australia’s current low interest rates and rising property prices are expected to encourage construction activity over the next five years.