Reports released by The Australian Business Review suggest the construction industry will plummet in the next four years due to Australia’s falling mining investment and financial crisis recovery. The Review estimates the loss of revenue from mining will lower the general value of the Australian dollar, which will keep our trade sector ‘weak’ at best until the climate recovers. For tradies, this means slower business and potentially a loss of cash flow in the residential sectors.
This, combined with the Australian Government’s reduced expenditure on infrastructure, which has seen a ten percent decrease over the past two years. This suggests the outlook isn’t good for our once-booming construction industry. So how will the trade industry recover?
Master Builders reported earlier in April that the housing market in Australia remains solid across the nation, with continuation of high rise apartment structures and the private house sector remaining steady. Master Builders also maintain the outlook for the general building industry will remain steady over the next twelve months.
Regardless of the economic climate, the foundations of good business are the key to maintaining your profile and profit in the construction industry. CPA Australia suggests keeping the financial health of your business booming by going back to basics and using good budgeting, risk management and annual ‘goals’ to keep your business in check. It’s also important to stay on top of any building disputes which may arise and seek legal advice before entering into any dispute.
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