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1301.0 - Year Book Australia, 2006  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 20/01/2006   
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Contents >> Chapter 19 - Construction >> Trends in construction activity

TRENDS IN CONSTRUCTION ACTIVITY

Construction activity is carried out by both private and public sectors. Over the past 10 years, public sector construction has remained relatively constant, maintaining an annual value of work done of around $16,000m (graph 19.3). Private sector construction on the other hand has been more volatile, experiencing a sharp decline in 2000-01 after the introduction of The New Tax System in July 2000. In 2002-03 it exceeded 1999-2000 levels for the first time, and between 2003-04 and 2004-05 increased by 3% to $67,011m.

Graph 19.3: CONSTRUCTION ACTIVITY(a), By sector


In the three broad areas of construction activity - residential building, non-residential building, and engineering construction - the pattern of construction activity by area of activity has changed substantially over time (graph 19.4). Before 1991-92 the value of non-residential building activity was greater than engineering construction activity. However, since 1991-92, engineering construction activity has consistently exceeded non-residential building activity.


Graph 19.4 also shows the acceleration in residential building activity to record levels prior to the introduction of The New Tax System in July 2000 followed by a substantial downturn in 2000-01. All three areas of construction industry activity surpassed 1999-2000 levels for the first time in 2002-03.

Graph 19.4: CONSTRUCTION ACTIVITY(a), By type of activity


Table 19.5 shows in 2004-05 residential building construction work done (in chain volume terms) accounted for 43% of the value of total construction work done, engineering construction accounted for 36% and non-residential building accounted for 21%. Between 2003-04 and 2004-05 the value of total construction work done (in chain volume terms) increased by 4% to $84,548m. Engineering construction had the largest increase (12%), followed by non-residential construction (4%). Residential building decreased, by less than 1%.

19.5 VALUE OF CONSTRUCTION WORK DONE(a), By type of activity

Residential building
Non-residential building
Engineering construction
Total construction(b)
$m
$m
$m
$m

1997-98
24,197
15,229
19,485
59,009
1998-99
26,219
15,980
21,459
63,759
1999-2000
30,596
15,590
21,571
67,515
2000-01
22,428
12,900
19,009
54,358
2001-02
27,480
13,582
20,610
61,670
2002-03
34,339
16,223
25,493
76,045
2003-04
36,359
17,215
27,408
80,982
2004-05
36,027
17,943
30,578
84,548

(a) Chain volume measures, reference year is 2003-04.
(b) Chain volume measures for years other than 2003-04 and 2004-05 are not additive.

Source: Construction Work Done, Australia, Preliminary (8755.0).


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