The building and construction industry will continue to face its challenges in 2020, according to Master Builders Deputy CEO, Paul Bidwell.

“Building work completed during the year to September 2019 was down 9.2 per cent over the previous year, totalling $20 billion. Almost two thirds of this was residential building work (approximately $13 billion), with the remaining $7 billion commercial building work,” Mr Bidwell said.

“It’s not all doom and gloom – we did have some bright spots during the year with alterations and additions and government buildings up 10.9 per cent and 24.3 per cent respectively.

“Our hope for the future is underpinned by the Queensland economy, which according to the Queensland Government’s 2019-20 mid-year fiscal and economic review is forecast to grow at a healthy 2.5 per cent."

Along with the falling pipeline of work, the industry has also been subjected to a wave of regulatory reform that by and large has had a massive negative impact, creating a high level of unrest amongst the industry in general. 

“The revamped Minimum Financial Requirements that Queensland’s building businesses need to meet are causing grief for tens of thousands of licensees," said Mr Bidwell.

"It remains to be seen whether these businesses can comply with the new laws by the end of 2020 and what action the building regulator takes against those who can’t.”

In mid-2020 the Queensland Government intends to introduce the next phase of its controversial Building Industry Fairness legislation.

While there are some positive changes, by and large it will be to the cost and detriment of many builders and trade contractors.

“All in all, it’s set to be a tough year for the industry," said Mr Bidwell.

Regional snapshot

Looking across the state the pipeline of building work varies significantly.        

Greater Brisbane continues to attract nearly all the state’s job growth helping to underpin long-term demand. 

The Gold Coast has taken a real hit to jobs, losing 18,000 over the past year.

Despite this, there’s confidence within the region in both sectors, with many confident about the future.

The Sunshine Coast and Toowoomba have both seen a downturn in work but this should begin to turn around later in 2020 with good underlying demand from job growth and major projects.

Wide Bay has been enjoying strong growth but this will moderate over the coming year.  Mackay & Whitsunday and Central Queensland should both be a case of ‘steady as she goes’, albeit at a low level, with respectable job growth and investment coming to these regions. 

In North Queensland the flood repair work is expected to last most of 2020, but there are few signs of new investment to replace this when it comes to an end.

However, a couple of major mining projects which are under consideration could be a game changer should they get underway. 

Far North Queensland will continue as the stand-out performer in the regions with both new jobs and investment heading north.

Read here on the challenges for the Queensland residential building industry

Read here on the challenges for the Queensland commercial building industry

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