According to market research from IBISWorld, road and bridge construction, and oil and gas extraction are set to flourish in 2017, while we may still see a fall in heavy industry construction and apartment construction.
According to IBISWorld senior industry analyst, Nathan Cloutman some industries that shone in the past may disappoint in 2017. He explained,
“Many of the industries likely to disappoint this year have performed strongly in recent years, but research suggests boom times for these industries are over, at least for the next 12 months,”
“Some of the industries that IBISWorld anticipates will grow over 2017 have remained depressed for some years, giving rise to demand for those industries’ products and services.”
Growth in the road and bridge construction industry is expected, in part thanks to big transport infrastructure projects including the North Connex M1 to M2 link and WestConnex in Sydney.
Rise in revenue in this sector is expected by at least 27 per cent in 2016/2017 which equates to $20.1 billion.
According to Cloutman, these types of private-public funded projects will dominate the road construction sector over the next couple of years.
The predictions for the heavy and non-building construction aren’t as positive. These sectors may find it a little tougher in 2017 with a drop in revenue predicted. Experts predict a fall by 38.1 per cent to $37.8 billion, down by nearly half on its peak revenue of $71.6 billion in 2013/14.
Mr Cloutman explained,
multi-unit residential building starts peaked in 2015/16 but demand is expected to deteriorate sharply in the current year as major developments are completed and with several key markets oversupplied.
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