Global Trends

After emerging from COVID-19 restrictions and lockdowns in 2022, the world faced a new source of instability - soaring energy prices for oil and gas caused by the Russian invasion of Ukraine. The resulting inflation has led central banks to increase interest rates while governments scramble to curb it. This has affected national economies and the construction supply chain, prompting the market to reflect on project fundamentals and the cost of financing for new private sector developments.

Meanwhile, governments worldwide are investing heavily in infrastructure and publicly built assets to address critical issues. This includes the urgent development of renewable energy assets to enhance energy resilience and support national and global decarbonization goals. Additionally, there are efforts to improve public transport, rail infrastructure, and new aviation infrastructure to decrease dependence on oil-based passenger vehicles and dieseldriven logistics fleets.

Furthermore, there is a focus on addressing the shortcomings in the health sector that the pandemic and other major health crises have highlighted and exacerbated. Governments are investing in developing assets for new forms of care, including regional specialist acute triage and care facilities. They are also taking measures to tackle the critical shortage of safe, appropriate, and affordable housing in multiple nations, such as Australia, New Zealand, Hong Kong, Indonesia, and the Philippines.

To mitigate supply chain risks, there is a push to boost support for the establishment or expansion of facilities for advanced, local, and circular economy manufacturing. Additionally, there is an emphasis on addressing the impacts of climate change through infrastructure and retrofit projects aimed at adaptation and mitigation.

Australian Construction Trends for 2023

The construction industry is a critical driver of economic growth, and as we move into 2023, there are several trends expected to shape the future of construction businesses. From labour shortages and supply chain disruptions to digitization and climate change impacts, these trends will require the construction industry to adapt and evolve to stay competitive. Each of these trends presents unique challenges and opportunities for the construction sector, with potential impacts on cost, productivity, and sustainability. In this context, it is crucial for construction companies to stay informed about these trends and take proactive steps to navigate the changing landscape of the industry.