Economic briefing note on engineering construction in March 2016

March 2016

Release date: 29 June 2016
Next release: 28 September 2016 

In the March quarter 2016, engineering construction work done in Victoria rose by 6.6 per cent, while Australia experienced a decrease of 1.4 per cent over the same period. Queensland (down 8.9 per cent) recorded the largest decline over the March quarter 2016.

The most significant engineering construction increases in Victoria by sector were in roads, highways and subdivisions (up $108 million) and telecommunications (up $47 million). While the largest decreases were seen in the recreation and other (down $57 million) and heavy industry (down $25 million) sectors.

In the year to March quarter 2016, Victoria's engineering construction growth (7.2 per cent) was the third highest amongst the states, behind South Australia and New South Wales.

In the year to March quarter 2016 the largest increase in engineering construction in Victoria was in electricity generation, transmission etc. and pipelines (up $180 million), while the largest decrease was in heavy industry (down $100 million) over the same period.

Value of work done in Victoria

This chart shows the value of engineering construction (in billions of dollars) in Victoria and Australia between the March quarter 2006 and the March quarter 2016. In the March quarter 2006 the value of engineering construction in Victoria was $2.5 billion. Between the March quarter 2006 and the December quarter 2007, the value of engineering construction experienced a downwards trend, decreasing by 19.0 per cent and reaching a low of $2.0 billion in the December quarter 2007. This was followed by an upwards trend in the value of Victorian engineering construction between December quarter 2007 and December quarter 2011, reaching a peak of $3.2 billion in December quarter 2011. In this period the value of engineering construction rose by 60.8 per cent. Between December quarter 2011 and September quarter 2014, the value of engineering construction once again trended downwards, declining by 25.2 per cent to a low of $2.4 billion. Since September quarter 2014, the value of engineering construction has trended upwards, increasing by 15.6 per cent to a value of $2.8 billion in March quarter 2016. In the March quarter 2006 the value of engineering construction in Australia was $14.5 billion. Between the March quarter 2006 and the September quarter 2010 the value of engineering construction experienced an upwards trend, increasing by 40.5 per cent to a value of  $20.3 billion in the September quarter 2010. Following this, growth in the value of engineering construction trended upwards at a greater rate, increasing by 70.7 per cent to a peak value of $34.7 billion in September quarter 2012. Since September quarter 2012, the value of engineering construction has trended downwards, decreasing by 31.5 per cent to a value of $23.7 billion in March quarter 2016. 

Value of work done NSW VIC QLD SA WA TAS AUS
Total to March quarter 2016 ($ million) 4252 2771 4253 1192 9099 278 23,732
Change since December quarter 2015, $ million (%) 219 (5.4) 171 (6.6) -414 (-8.9) -1 (-0.1) -539 (-5.6) 0.4 (0.1) -346 (-1.4)
Annual change to March 2016, $ million (%) 325 (8.3) 187 (7.2) -2737 (-39.2) 153 (14.7) -457 (-4.8) -30 (-9.8) -2911 (-10.9)

Value of work done in Victoria by sector

Value of work done in Victoria by sector Roads, highways and subdivisions Bridges, railways and harbours Electricity generation, transmission etc. and pipelines Water storage and supply, sewerage and drainage Telecommunications Heavy industry Recreation and other
Total to March quarter 2016 ($ million) 805 273 559 164 501 189 257
Change since December quarter 2015, $ million (%) 108 (15.5) 21 (8.4) 22 (4.1) -16 (-9.0) 47 (10.4) -25 (-11.6) -57 (-18.2)
Annual change to March 2016, $ million (%) -38 (-4.5) 43 (18.6) 180 (47.6) -31 (-15.9) 89 (21.5) -100 (-34.7) 79 (44.4)

Source: Australian Bureau of Statistics (ABS), cat. no. 8762.0 – Engineering construction activity, Australia

Contact

Please email economic.analysis@ecodev.vic.gov.au for more information.

Page last updated: 23 September 2016