November 2013
Featured in this insight: Construction, Financial services, International
Surveys indicate that Australian construction and mining will come to a slowdown: New research from BIS Shrapnel predicts that over the next five years, despite overall employment forecasts rising a tenth (11%), there will be a two-fifths (40%) decline in construction positions. This downturn in in construction positions is largely due to China – Australia’s number one metals and minerals customer – who are currently experiencing a marked economic slowdown of their own. As such, Australian giants Rio Tinto and BHP Billiton are cutting back on capex (capital expenditure) projects and other unnecessary costs.
BIS Shrapnel Infrastructure and Mining Unit Senior Manager Adrian Hart, said:
“With respect to the mining boom, it's probably fair to say that this is not the beginning of the end, but the end of the beginning.”
Separately, independent research consultants Business Monitor have published their latest findings on the prospects for Australia’s mining sector. The forecast revealed that Australia’s mining sector is due to reach $181 billion by 2017, growing at an annual average rate of 4.3% over the forecast period.
While these figures still indicate annual growth they are in stark contrast with the average growth rate of 23.3% per year over the past decade.
Reflecting on results of the study, Business Monitor commented:
“Australia has been among the biggest beneficiaries from the China-led commodities boom over the past decade, attracting huge amounts of investment into the minerals space.”
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