HIA–CORDELL
1OO
Construction
COMMERCIAL
BUILDING
INDUSTRIAL
BUILDING
CIVIL CONTRACTING
MULTI-UNIT
RESIDENTIAL
BUILDING
MINING
CONSTRUCTION
Australia’s 100 Largest Non-residential Construction Companies
2014/15
Housing Industry Association
Economics
HIA-Cordell
Construction 100
2014/15
HIA Economics
79 Constitution Avenue
CAMPBELL ACT 2612
[email protected]
http://economics.hia.com.au
CONFIDENTIAL INFORMATION
This report is confidential to the addressee. It may not be copied or transmitted in whole or in part in any form, including by photocopying, facsimile, scanning or by manual or
electronic means. Multiple copies can be supplied by arrangement/for an additional charge. Unauthorised copying is a breach of HIA’s copyright and may make you liable to pay
damages.
Disclaimer: This publication is produced by HIA Economics based on information available at the time of publishing. All opinions, conclusions or recommendations are
– Cordell
100
reasonablyP1
heldHIA
or made
as at Construction
the time of its compilation,
but no warranty is made as to accuracy, reliability or completeness. Neither HIA nor any of its subsidiaries accept
liability to any person for loss or damage arising from the use of this report.
2014-15
TheThe
Construction
100
Construction
100
The most active non-residential construction companies in 2014/15
In aggregate, the value of work done by the
1
construction industry contracted during the 2014/15
year. However, the value of non-residential building
work done actually increased during the year, and
so too did the value of work on multi-unit dwellings.
Nevertheless, the combined growth in these two
segments was not sufficient to offset the fall in
engineering construction during the year.
The total value of public and private construction
work done during 2014/15 fell by 7.3 per cent to
$166.5 billion. This was the first time on record that
there has been an annual decline in the combined
value of work done by these sectors.
The contraction in engineering construction which
drove the overall decline primarily relates to the
current point of the mining investment cycle. After
reaching lofty heights back in 2013, the value of
engineering construction work done has fallen to a
level 16 per cent below the peak. While there is still
a large volume of mining related construction work
still yet to be done, the survey of private new capital
expenditure (CAPEX) intentions suggests that firms
are planning less investment in 2015/16.
While caution prevails, there are some faint signs of
optimism amongst businesses outside of the mining
sector when it comes to investment intentions. The
NAB monthly and quarterly business surveys show
that businesses were generally more positive at the
end of the 2014/15 financial year, following weaker
sentiment in the preceding quarters. However, the
early monthly read on business confidence at the
beginning of 2015/16 shows that some of the gains
have been pared back.
The non-residential building sector has benefited
from this nascent recovery in business sentiment. In
alignment with the modest improvement in
sentiment, the value of work done increased by a
modest 2.8 per cent during the 2014/15 year.
Nevertheless, there is still a long way to go before
business investment could be considered healthy,
and against this backdrop the RBA are likely to
maintain the official cash rate at low levels for some
time yet. However, the low interest rate environment
is presenting challenges for policy makers in the
form of rapidly rising home prices in our two largest
cities.
The price pressures reflect the strong demand in the
housing market at present, and this is reflected in
new home building activity. The level of building
work done on multi-unit residential construction work
reached a record high in 2014/15, and the healthy
pipeline points to high levels of activity being
sustained for some time to come.
Composition of the Industry
In this report, the non-residential construction
industry includes the following areas of the
economy:
 Non-residential building - mainly commercial,
industrial, education, and health-care buildings;
 Engineering construction - mainly roads,
railways, telecommunications, power, water and
sewerage infrastructure, and mining construction;
 Multi-unit (‘other dwelling’) residential housing.
The non-residential construction industry excludes
the market for new detached houses and for
renovations to housing and unless otherwise noted,
excludes engineering construction work carried out
by the public sector’s own workforce. A significant
proportion of non-residential building is for the public
sector, but private contractors are responsible for
nearly all of it. For the purposes of this report, mining
relates to construction undertaken on a mining site,
and excludes contracts for core mining operations
such as drilling.
Data used for compiling the Construction 100 list is
based on information collected by Cordell
Information. In cases where there has been an
inadequate level of company disclosure to reliably
ascertain the value of contracts or parties involved,
the contract or project has been excluded from the
Construction 100.
1
P2 HIA – Cordell Construction 100
2014-15
Unless otherwise stated, the 2014/15 year in the report refers to the
year ended March 2015, with a similar convention being applied to
previous years.