The State of Construction in Australia in 2021

Share

Employing aprox 1.2 million Aussies (aprox 1 in 10 of all employed) construction is the third largest industry in Australia by number of people employed and its share of the GDP aprox 9% or over $370 billion in revenue.

Construction is also rich in small business and predominately utilizes Australian manufacturing, labour and resources in its supply chain.  This being said; construction certainly has not been immune from the effects of COVID-19.  During 2020 residential and subdivision works declined by more than 10%.  The governments at both Federal and State levels have responded by bringing forward spending on shovel ready infrastructure projects, particularly road and rail.

The Federal Government’s Homebuilder Grant Scheme has been particularly successful, saving an estimated aprox 1,000,000 construction jobs and has seen first home ownership rising to the highest levels in over a decade.  To give some perspective to the success of the program, there has been aprox 75,000 applications for grants made under the scheme compared with the Government’s initial estimation of 27,000 – nearly 3 times the take-up.

Commercial and non-residential construction figures are still languishing however.

As we come into 2021, the increase in residential and infrastructure spending augurs well for the industry, however there is some head-winds to take notice of.

Firstly supply – any products either imported or requiring imported content are likely to suffer ongoing supply issues in 2021.  The huge shortage of shipping containers in ports of origin all around the world, coupled with reduce production rates due to shut-downs and other COVID related restrictions will see some common items in short supply.  The up-side of this is the flow-on increase in demand for Aussie manufactured products.  Every cloud has a silver lining they say!!

Secondly pricing – the supply shortages and shipping difficulties is leading to large pricing increases for manufactured products.  For example, iron ore has risen from lows of around $65 USD tonne to almost $170 USD tonne.  This has to have an impact on pricing.  Similar increases have been seen in a lot of raw materials including coking coal, copper and aluminium.   It is estimated that imported manufactured goods could rise 15-20% in 2021 (this will also impact spare parts pricing).

Lastly payment disputes – as Job Keeper winds to a close in March, pressure will grow on companies operating on insufficient liquidity.  Delays in payments is likely to result stretching some companies past their capacity to fund required cash-flow.

Overall though, the outlook for 2021 is reasonably positive.  The influx of Government money should start to trickle through and prime the pump for a growing demand as the year goes on.

Be First to Know! Join for Monthly eNews

2020…..Oh what a year!

Thanks for the support of our loyal customers (YOU!), our rock-solid suppliers and hardworking team, we were able to Keep Moving! The TKV crew will be taking a break from 23 Dec to 4 January inclusive. If you need a hand getting ready for next year, flick me us an email.. contact@tkv.com.au, give us a call on 1300 65 11 43 or head to tkv.com.au/.

6 Things you need to know when buying rubber tracks

The first of the 6 things you need to know when buying rubber tracks is – “who actually is the company I am looking at buying from??” No matter how good, bad or indifferent the quality of the product is – you need to make sure that you are working with a company that has a proven ability to supply and back-up their product over a period of time. In the days of the online sales, it is so easy to set up a pretty website, flog a dodgy product and disappear – leaving you in the lurch.

A WHEEL to TRACK Conversion… the benefits!

Hailing from up north QLD in the Burdekin, Rapisada Farms are the movers and shakers in the Australian melon growing industry including being the growers of the famous orange candy melon. Sib Rapisada, one of the owners of this great Aussie agri-business is an innovative and progressive guy who doesn’t let the weeds grow under his feet.

Are you
looking for

Undercarriage components, such as sprockets, rubber tracks or track adjuster, for your machine?

Contact us or use your model number to make a search in the Parts Finder.

FIND YOUR PARTS

To obtain a quote or for more information, select the make and model of your machine, then select the parts you require.

Select a Make

Select a Model

CLEAR

Can’t Find what you’re looking for?