Hello World! Welcome Friends! As the year 2021 draws to a close, many are wondering if there is renewed hope for a stronger economic recovery in 2022. Can we also expect a truly normal 2022 given that close to three billion people have been vaccinated globally?
There may still be a great deal of uncertainty relating to the above questions, especially since the Delta variant continues to ravish lives and income potential. However, there is always hope. As long as the human spirit persists to find solutions, we can celebrate with confidence the little but significant milestones achieved during these turbulent and uncertain times.
1. How Significant are the Construction Industry’s Breaks Through?
A huge milestone for Australia’s lagging economy right now is the superb turnaround of the construction industry. After knocking off 6.6% in 2019, and declining by 4.4% in 2020, the industry recovered this year and recorded a growth of 2.6%. The projection for the next three years looks set to offer a stronger turnaround which will add more jobs to the economy bringing back some sobriety for small businesses. The expectation is that Australia’s Construction sector which makes up 9% of GDP will add 3.5 % of growth over the next three years.
This is a fresh outlook that offers strong relief for a sector that employs around one million people. The Australian government’s response to the pandemic’s hit on the construction industry was timely and is estimated to save around 60 thousand jobs so far. The injection of infrastructure projects by the government is valued at $72 billion and without a doubt offers a lifeline to the economy as a whole.
While 2019 and 2020 may have been devastating years for the industry, 2021 is regarded as a year that proved how valuable timely COVID-19 responses can be. There have also been some recommendations made by the Homebuilder that further incentivizes the sector and also puts skills development firmly back on the agenda. Economic stimulus packages remain relevant to all economies still battling recession and stagnant growth. Overall, therefore, 2021 offered renewed hope, albeit modest gains in comparison to earlier growth trajectories experienced by the industry.
2. One of the Fastest Growing Sectors
Did you know that construction is still regarded as one of the fastest-growing sectors in Australia especially for smaller businesses? In other words, the growth potential is huge. Sadly though during times of economic crises, smaller businesses employing fewer people usually are hit the hardest. If you look deeper into the construction industry, you will see that the sector is made up of more small and medium-sized businesses that are solely or family-owned.
What does this mean for the industry? Industry experts also observed that an important lesson learned during the COVID-19 crisis is that small to medium businesses have the potential to mitigate against future risk by up-skilling the manner in which they run their businesses. The logic comes down to restructuring their operations and formalizing teams to reflect a stronger corporate approach to doing business. Most formally structured Corporates also place a great emphasis on marketing, as opposed to smaller more loosely structured construction businesses. However, the potential for growth is huge for smaller to medium-sized businesses that want to scale their businesses in the long term.
A simple decision for construction companies to promote their business with construction banners will prove very effective. Ensuring visibility also formalizes your brand presence on construction sites too. With growth projections firmly in place for the next three years, now is the time for smaller businesses to find practical ways to boost their brand presence at every possible opportunity without necessarily breaking the bank to achieve great marketing results.
Handling an economic crisis includes finding the right solutions which will hopefully address future risks in the business. It makes sense to prepare small and medium businesses for exponential growth and the key to this lies in putting in place corporate structures guided by the best practice in corporate governance to attract investment and adopt significant international partners too.
3. Why Make Place for Women in Construction?
For quite some time, construction news in Australia addressed the barriers to entry for women in the sector. Apart from this sector being heavily regulated and made up of small and medium family-owned businesses including solely owned businesses, women economic participants face hurdles in what is a largely male-dominated industry.
The National Association for Women in Construction has firmly placed women on the agenda of tender this month by calling for the reform of tender practices to secure more women involved in government-funded infrastructure projects. The goal is to increase the participation of women in construction by 25 percent by 2025. A burning issue right now is that women in construction are paid significantly less than their male counterparts.
It is a known fact that there is also a skill shortage that impacts growth overall in this sector. An improvement in gender parity is therefore believed to be key to creating jobs for women, thus increasing the viability of their roles in the economy, and ultimately addressing skills shortages.
4. What are the Highest Paid Jobs in Construction?
An obvious opportunity for skilled professionals is to examine where the job opportunities are as the government rolls out infrastructure projects that are well incentivised to boost job creation. As mentioned earlier, skills shortage is an ongoing issue and there remains many unfulfilled roles, according to industry experts in the construction sector. In fact, it’s believed that entry-level laborers and highly competent roles for managerial positions could be great opportunities to look into while you keep an eye out for relevant projects opening up in construction.
Construction Project Managers remain in high demand and their role is critical to ensure that projects run smoothly. They are one of the highest-paid skilled workers in the industry and their salary ranges between $140 000 to $200 000 per year. Meanwhile, Construction Estimators earn between $100 000 to $ 240 000 per year. This role is critical as it involves estimating the costs of projects. Often large projects create a huge demand for Construction Estimators, so you might want to keep an eye out for these jobs.
Other high-paying jobs in the construction sector include Foremans and Shotcretes. The salary ranges are similar to those of the Project Manager and Construction Estimators and these positions are always in high demand especially when there are big construction projects that need to be fulfilled. Find out more about all the roles involved in construction projects to ensure that you don’t miss out on job opportunities in a sector that clearly appears to be moving towards an upward growth trajectory in the next few years.
Conclusion
The good news is that unlike in 2020 when most economies around the world plunged into a recession, the outlook has shifted in 2021 to a more palatable projection, especially for small and medium-sized businesses. Growth forecasts globally have improved for both 2021 and 2022, but there are risks and uncertainties that prevail during what are still tough economic times. However, there’s nothing stopping us from celebrating the milestones as we emerge out of a crippling pandemic and recession. Staying on top of industry news and tracking demand for job creation remains relevant as we battle to dent unemployment globally.
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