The construction industry is at the origin of the houses we live in, the schools our children go to or the roads we travel everyday. The main activities focus on building, maintaining and repairing a wide range of diverse structures such as houses, buildings, roads, railway, bridges and many more. The construction sector plays a major role in the Australian economy.
The industry can be divided into three categories: residential, non-residential and engineering construction. Residential construction refers to houses and apartment buildings. Non-residential construction includes facilities such as hospitals, shops, offices, entertainment and industrial facilities. Engineering construction designates infrastructure projects such as roads, railways, bridges and buildings. The engineering construction activity represents the largest part of the industry. More than half of the revenue generated comes from engineering construction.
How construction affects other industries
The construction industry is directly linked to other industries such as transport, manufacture or retail. Many people are involved at the different stages of a construction project. Architects and engineers are involved at the design phase.
When construction starts, contractors and subcontractors work together to complete the project. To build a house or any other structure, they need building materials such as bricks and timber which is provided by suppliers and then delivered by transportation companies. They also need plant and equipment to complete the works, from heavy machinery to hand tools, which they purchase or hire from manufacturers and retailers. Tradesmen such as electricians, plumbers or landscapers are also involved at different stages of a construction project and are regularly required for maintenance purposes after construction is complete.
Another phase of a construction project is the sale of the house or the building. Buyers and sellers involved in the sale process require the services of professionals such as real-estate agents, bankers and lawyers. Finally, the newly built house or building then needs to be equipped with furniture and appliances from local retailers.
Construction as the bellwether of the economy
There is a strong connection between the construction industry and the other industries it supports. When the building sector slows down, it is all the people directly and indirectly involved in the industry who see their activities slow down as well. As such, the construction industry is like the barometer of the economic health of our country.