Fed: Non-residential building set for 15pc growth - AIG
CANBERRA, April 30 AAP - Non-residential construction is poised to make a major contributionto economic growth over the next two years, the Australian Industry Group (AIG) said today.
The AIG's latest Construction Outlook Report found that growth in non-residential constructionturnover was projected to be 15 per cent in 2002-3 and 12.5 per cent in 2003-4.
It reported solid growth of 10.1 per cent in 2003, maintaining the recovery of the previous year.
Non-residential construction employment increased by 6.4 per cent in the 12 monthsto the end of February 2003.
Companies are planning for another 5.4 per cent increase by the end of the year followedby a further increase of 5.3 per cent in the first half of 2004.
The report said exports were becoming increasingly important, with revenue from overseasconstruction business expected to grow by 12.4 per cent in 2003, followed by a strong25.1 per cent rise in 2004.
This would result in exports accounting for 9.6 per cent of all construction revenue.
The survey was undertaken in conjunction with the Australian Constructors Association.
Surveyed companies employ almost 30,000 employees and have a combined turnover of $10billion, or about 25 per cent of total industry activity.
AIG deputy chief executive Heather Ridout said the strong projections were good newsfor industry generally and the Australian economy.
"The projected growth should help offset any slowing in residential construction, providingan almost seamless transition of work for the industry," Mrs Ridout said in a statement.
"This also provides continued demand downstream in other construction-related industries."
Mrs Ridout said the upbeat growth forecasts reflected solid expansion in mining andheavy industry construction combined with a continued recovery in non-residential building.
Companies also expected a significant increase in infrastructure work, led by large-scalecivil engineering road and rail projects, principally in New South Wales and Victoria.
AAP dep/pw/br
KEYWORD: CONSTRUCTION
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