SIGNS OF RECOVERY FOR LOCAL CONSTRUCTION

A building industry leader believes the sector has turned the corner, despite the release of an unflattering first quarter report.

Master Builders Far North regional manager Ron Bannah said the industry’s outlook was looking better. “My feeling is that we are in a pretty good position,” he said.

Mr Bannah said the post-cyclone Yasi rebuilding process was starting to kick in and associated with the Cairns Regional Council’s $ 4 million infrastructure discount scheme there was cause for optimism.

The rebuilding program is expected to employ up to 1000 local builders and subcontractors and the discounts will fast-track 32 major construction projects over the next 12 months.

Mr Bannah said there were other good signs, including 70 building apprentices being re-employed over the past year. “Apprentices usually get the raw end of the stick and they are the first to be put off,” he said. “But to Constructions Skills Queensland’s credit and other people, 70 apprentices have been reengaged.”

Mr Bannah said entries for this year’s Housing and Construction Awards were more than last year’s. “When I went to Brisbane on May 9 for a meeting, there were only 48 entries but, as of last night, there are 90,” Mr Bannah said. “ That’s more than last year’s 77. I am quite surprised.”

He said, at one stage, there was the possibility the $100,000 awards night would be cancelled. “But not anymore. Ninety is great,” Mr Bannah said.

The Master Builders Survey of Industry Conditions report for the March quarter said the first three months had been another tough quarter for the state’s building industry, with flooding, cyclones and weaker demand impacting building activity levels. “The weather has, however, not been the sole challenge for the state’s construction industry during the March quarter,” it said.

“Financing issues including tighter lending criteria and higher than average mortgage rates have also weighed heavily on industry activity. Consumers and businesses, particularly those with no direct exposure to the mining boom, remain cautious about the economic outlook and hesitant to spend money unnecessarily in the short term.

Far North Queensland has been particularly hard hit by these trends and this has been compounded by the impact of the high Australian dollar on the tourism industry. A revival in the local construction industry is just what the region needs to help increase the employment rate and confidence in local housing markets.

Article published by The Cairns Post - 30th May 2011

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach