Construction outlook report

The recently released BCI 2024 Construction Outlook Report is looking at the challenges that developers, architects and builders are facing in 2024.

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Businesses across Australia are dealing with inflationary pressures, rising wages, higher interest rates and shortages of skilled labour and materials. The construction outlook report looked forward at the volume of project proposals across Australia and there will continue to be a high level of project activity.

The report surveyed developers, builders, and architects on the top challenges they were facing in regard to projects and people. When it came to the challenges with projects the top responses were delays and the cost of products and equipment. When it came to the challenges with people the top responses were acquiring talent, holding onto talent, and staff motivation and engagement.

Below we have shared some of the insights uncovered within the report.

• The most significant risk in the industry currently is inflation, driving up costs.

• 44% of developers and architects expect to have about the same amount of work as 2023.

• 39% of developers and architects are expecting more work in 2024.

• The top 2 influences when it comes to specification are cost and whether the product/service is Australian Made.

• 10% to 30% of specified products on average are swapped out for alternatives 40% of the time.

• The top reasons specified products are swapped for alternatives are cost, availability, and lead times.

Key takeaway – building strong relationships with architects to gain and maintain specifications for current and future projects is increasingly crucial for product suppliers and manufacturers.