Plenty of statistics and analysis from experts on Wall Street project positive outlooks for the global construction industry in 2018. While these are comforting projections for the United States, are the projections similar for Australia?
Construction projects in Sydney have not been as widespread as they have been in past years, but 2018 is expected to be the year to reverse the trend. This is welcoming news for labour hire in Sydney, since more jobs will be available. Here are some factors to take into consideration about the global construction industry, and Australia in particular, for 2018.
Overall Trends Are Positive
Most trends and statistics indicate at least a minor growth for construction projects. Every labour hire agency is gearing up for what looks like a major increase in demand for skilled construction labour hire. There has been momentum toward the end of 2017, and I expect it to continue into the first part of 2018 and beyond. The biggest question is still how big of an impact the momentum will have on construction labour hire.
Potential Risks to Consider
One of the most under-appreciated risks of a construction boom is wage inflation. If construction labour hire demands higher wages, then companies will be forced to increase their prices on products and services. This could result in fewer projects than expected, since companies won’t be able to fit them into their budget.
How Global Construction Trends Affect Australia
Global trends have a significant impact on labour hire in Sydney. Everything from the cost of building materials, supply and demand and wage inflation all have an impact on Australia’s construction industry. The tightening of labour markets will be something to keep an eye on throughout 2018, as it will significantly impact the size and amount of construction projects started and completed.
Overall, the global construction industry has a positive outlook in 2018. Various factors could contribute to the rise or fall of construction projects, but 2018 appears headed for growth rather than a decline. Every labour hire agency in Australia will be hard at work sorting through qualified candidates, since a major spike in jobs available is expected in the near future. No matter how you’re impacted by the trends in the construction industry, contact us to see how we can help.