Impact Of The Construction Industry On The Economy Essay

Introduction The construction industry in Australia has over the recent three years provided increased employment thereby improving the economic financial performance. This has been fueled primarily by middle market construction firms. However, forecast shows that the total non-residential construction would fall between 2014 and 2016 due to falling levels of investment on project activities. The economic deficits incurred in the construction industry would be offset by investments in the telecommunication and commercial construction, especially in apartment building. There however are challenges in the industry occasioned by uncertainty on future spending on construction projects by the government. Moreover, the cost of doing business and the ability to increasingly make revenue have created a challenging environment for the construction firms. Therefore stakeholders in the construction industry are concerned with whether the government would increase its spending and whether the pu blic construction projects will be available in the future since less than 10 percent are currently financing their clients. The Industry’s Contribution and Influence on the Macro-Economy The productivity and contribution of the construction industry are made using the Australian Bureau of Statistics Econtech analysis data. A Baseline and ABCC scenarios to show the contribution of the construction industry on the macro-economy. The ABCC scenario; ABCC Scenario Consumer Price Index -1.2Show MoreRelatedImpact Of The Construction Industry On The Uk Economy1582 Words   |  7 PagesThe construction industry provides over 3 million jobs in the UK, this being more than 10% of the total UK employment with it contributing to over  £90 billion to the UK economy. 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