The media has been rife with reports that housing construction approvals are experiencing a 19 year high.
Despite a slight dip in the past few months, figures remain relatively high which is good news for members of the construction sector and especially young people who may have in the past struggled to get a foothold in this industry.
An article recently featured on Yahoo Australia’s website detailed how home building approvals dipped to 3.5 per cent in March following a fall of 5.4 per cent in February. Despite these slight declines there were more than 188,000 home building approvals in the past year ending in March. These approval rates are the highest since 1995. It is also 20 per cent higher than they were the previous year.
For construction workers the news gets even better as Commonwealth Bank Senior economist Michael Workman was quoted as saying, the housing construction sector is likely to become the main driver in the Australian economy, as the mining sector slows down, leaving vacant its’ position as the main sector in Oz.
Workman was quoted as saying:
“There is still a significant boost coming to construction and spending which will help offset the winding down of resources investment from its recent peak,” he said.
“Non-residential construction approvals are also trending higher, thanks to strong interest in new CBD commercial developments.”
Workman also explained that this strengthening in housing construction will help boost employment figures and the growth is also likely to affect other sectors of the economy.
Workman expects the rise in construction activity to be drastic over the coming quarters and he also expects it to filter into other sectors as well. He goes on to explain:
“We expect to see sharp rises in the construction activity data in coming quarters,” he said.
“It should also flow into higher spending at big box retailers as the new dwellings are kitted out.”
Tom Kennedy an economist from JP Morgan explains that detached dwelling approvals are rising which is expected to positively impact the construction sector nationally.
Even Housing Industry Association chief economist Harley Dale explained that home building will be a huge driver of the economy throughout the course of 2014. Dale was quoted as saying:
“If you’re searching for highlights to the Australian economy, new housing is the best shot you can take, he said.
“The momentum in approvals has slowly shifted from multi-units to detached houses and that is evident in the March quarter results,” he said.
“That having been said, multi-unit approvals hit a record high in the December quarter last year.
Young people, who may still be grappling with the decision of what career path to follow, should keep in mind that the construction sector is likely to become the main sector in Oz over the next few years. The significance of this is that the construction sector is a vast one, which can present numerous opportunities, career prospects and growth for skilled individuals.
Unfortunately as the construction sector takes over from the mining sector as the main driving force of the economy in Oz, we are also likely to see companies cutting corners when it comes to safety. The number of mining accidents we witnessed during the years when mining was the main sector was unacceptable and construction is also considered a high risk sector. In order to learn how to deal with these risks, White Card safety training will become more crucial than ever to ensure everyone in this industry is educated enough on safety and accredited to be there.