Construction industry gross value added Australia 2014-2023

In the year ended December 2023, the construction industry in Australia reported a gross value added (GVA) of around 161 billion Australian dollars. This industry includes building construction, heavy and civil engineering construction, as well as construction services. 

The state of the construction industry

The construction industry is a key contributor to Australia’s economy and an employer for millions of people across the country. In Australia, the total value of residential construction work completed across the private and public sectors is significantly higher than that of non-residential construction work completed. As of 2022, there were over 600 infrastructure projects in progress or due to be in progress over the next five years across Australia, with transport projects dominating infrastructure work.

Construction material shortages

In recent years, supply chain issues have led to construction material shortages across Australia, disrupting the industry. In conjunction with rising housing demand, material prices have soared, delaying new constructions and putting cost pressures on construction companies and clients alike. The producer price index of steel products and timber products, such as timber board and joinery, some of Australia’s most highly demanded construction materials, soared across the country over the past year. In response to shortages and inflating prices within the sector, government agencies, departments, and key companies have been investigating the potential of recycled materials as a replacement for conventional construction materials. Reclaimed asphalt pavement, recycled glass, and crushed concrete were seen as having the largest replacement potentials within Australia’s infrastructure industry.