The Construction Industry will become highly competitive
A recent report by BIS Shrapnel for the Queensland Major Contractors Association and Construction Skills Queensland predicted that the size and number of major construction projects in Queensland will decline by over $7.5 billion from 2012-13 through to 2016-17.
The 2013 Major Projects Report – Queensland Engineering Construction Outlook predicts that the amount of construction work carried out on major projects will plunge from an all-time high of $18.5 billion in 2012-13 to $10.9 billion by 2016-17.
The report’s major findings included:
- Heightened global economic turbulence will continue to factor heavily in investment decisions in major projects
- Escalating costs over several years and falling commodity prices have combined to undermine the competitiveness and financial feasibility of the next round of projects
- In particular, labour costs have grown substantially in Queensland over the past decade – in 2003 the state had construction wages 4.3% lower than the national average, but the forecast reveals they are likely to be 8.6% higher by 2017
- An effort by both Federal and State Governments to consolidate their balance sheets will particularly affect the roads and bridges sector of engineering construction (notwithstanding previous and current flood reconstruction works)
- The LNG market in Queensland should be seen as highly susceptible to risks including cost escalations, low gas extraction rates in the early phases and foreign competition from Asia and particularly US shale gas
- Major projects employment will peak over the next 12-18 months at 24,700 people before declining to around 17,000 by 2017.
The Importance of a Professional Corporate Brand
As the Major Construction Market declines the smaller industrial and commercial construction markets will encounter an influx of interested companies competing for the same construction projects and the market will be become highly competitive.
The serious challenges over the next four years for companies will be to stand out from their competition and have a point of difference.
With an increasingly competitive market, first impressions are critical and a professional corporate brand along with a high ranking website will be vital to the survival of many organisations.
Make an appointment with Puro Design (brand specialists) for free review of your current web search optimisation and brand management.
