Construction outlook: mining construction slowdown ripples across industry

John Heath Roberts writes in The Conversation (18.3.16) about a current slowdown in the construction sector, and the effect this is having across the rest of the nation’s economy. He suggests, among other measures, what state governments might do to assist the sector.

‘A sluggish building climate in Australia, influenced by a slowdown in mining construction, is leading the biggest companies in the construction sector to trim costs, pursue smaller projects and divest in larger non-performing ones.

‘Building and construction represents an important part of the Australian economy directly accounting for approximately 8-12% of total economic activity. Of that activity, approximately half is accounted for by construction and half by building, which is split approximately two thirds residential and one third industrial.

‘Three companies in the ASX top 100, WorleyParsons, CIMIC (formerly known as Leighton Holdings), and Lendlease have construction services which extend internationally and serve to highlight those parts of the sector that are faring better than others.’

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