While there’s no doubt that many building companies have been affected by the downturn in the Australian residential housing market, most industry experts agree that exciting new opportunities are presenting themselves elsewhere. And contractors that are modernizing their operations to driver faster, higher-quality projects stand to benefit the most from the continued growth in commercial, civil and industrial construction spaces.

A Positive Construction Outlook Overall

A recent report by the Australian Construction Industry Forum(ACIF), for example, forecasts that that while residential building will continue to decline until 2020-21, this will be more than offset by a significant increase in non-residential projects.

This growth will largely be driven by private investments in accommodation, industrial and office projects, as well as public sector investments in education and defence. The ACIF believes this will continue well into 2020-21 and will raise activity to peak at $45 billion. As well as this, investments in infrastructure construction are also expected to return to strong growth due to the extension of current plans and programs, which will raise activity to as much as $66 billion in 2019-20 and $68 billion in 2020-21.

This positive industry outlook is supported by GlobalData which predicted that new commercial and industrial projects will increase the annual growth rate to 2.14 per cent from 2019 to 2023, compared with 1.59 per cent during 2014-2018. GlobalData construction analyst, Danny Richards, also believes this overall improvement will be largely driven by investments in infrastructure and points out that the government is planning to invest US$58.9 billion to develop Australia’s transport networks.

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