Tuesday, May 29, 2007
Sunday, May 27, 2007
Construction weakens, despite lift in house building: Australian PCI
This article reports weak growth in the Australian commercial and apartment building activity in April 2007, which has outweighed the slight improvement in the house building sector. The article further indicates that new orders have decreased and builders have resorted to discounting of house prices to boost sales. The article indicates that the weak month has already resulted in a decline in employment and reduction in supplier deliveries, and that the trend may extend to future months as a result of the reduced orders.
The article draws a distinction between commercial construction which has declined, and the residential construction market which has shown growth and an increased level of demand.
The article demonstrates the immediate impact of consumer and commercial demand for construction on the industry and further shows how responsive the industry is to the market and the actions or demands of outsiders generally.
http://www.azobuild.com/news.asp?newsID=3661
The article draws a distinction between commercial construction which has declined, and the residential construction market which has shown growth and an increased level of demand.
The article demonstrates the immediate impact of consumer and commercial demand for construction on the industry and further shows how responsive the industry is to the market and the actions or demands of outsiders generally.
http://www.azobuild.com/news.asp?newsID=3661
New Building Permits Drop To Slowest Pace In A Decade
This American article from May 2007 reports that new building permits in the US dropped to the slowest pace since 1997. Reasons for the decline include a general downward correction of the market, and more specifically tightening mortgage lending standards and an excess of vacant housing units on the market.
The condition of the market is putting increased pressure on builders in the US, who are increasing their attempt to make sales and limit cancellations. The article further discusses which type of residential buildings are declining more than others.
While this article relates to the US residential industry, which is obviously significantly more developed than that of Australia, it is interesting to understand the world wide conditions, and to consider what impact this will have on supplier and provider contracts in Australia now that we live in a global environment.
Construction weakens, despite lift in house building: Australian PCI
This article reports weak growth in the Australian commercial and apartment building activity in April 2007, which has outweighed the slight improvement in the house building sector. The article further indicates that new orders have decreased and builders have resorted to discounting of house prices to boost sales. The article indicates that the weak month has already resulted in a decline in employment and reduction in supplier deliveries, and that the trend may extend to future months as a result of the reduced orders.
The article draws a distinction between commercial construction which has declined, and the residential construction market which has shown growth and an increased level of demand.
The article demonstrates the immediate impact of consumer and commercial demand for construction on the industry and further shows how responsive the industry is to the market and the actions or demands of outsiders generally.
http://www.azobuild.com/news.asp?newsID=3661
The condition of the market is putting increased pressure on builders in the US, who are increasing their attempt to make sales and limit cancellations. The article further discusses which type of residential buildings are declining more than others.
While this article relates to the US residential industry, which is obviously significantly more developed than that of Australia, it is interesting to understand the world wide conditions, and to consider what impact this will have on supplier and provider contracts in Australia now that we live in a global environment.
Construction weakens, despite lift in house building: Australian PCI
This article reports weak growth in the Australian commercial and apartment building activity in April 2007, which has outweighed the slight improvement in the house building sector. The article further indicates that new orders have decreased and builders have resorted to discounting of house prices to boost sales. The article indicates that the weak month has already resulted in a decline in employment and reduction in supplier deliveries, and that the trend may extend to future months as a result of the reduced orders.
The article draws a distinction between commercial construction which has declined, and the residential construction market which has shown growth and an increased level of demand.
The article demonstrates the immediate impact of consumer and commercial demand for construction on the industry and further shows how responsive the industry is to the market and the actions or demands of outsiders generally.
http://www.azobuild.com/news.asp?newsID=3661
Government counting on green homes to cut emissions
This article discusses measures taken by the Federal Government in the 2007 budget to fight global warming by introducing incentives and grants for residential households to install energy saving devices such as solar power systems. The article also outlines criticisms of the current proposals as the amount of funding is insufficient to support a decent proportion of the population actually installing the systems, and the $8,000 grant will cover less than half of the $20,000 price tag.
It has also been noted in the article that the budget does not provide for solar water heaters which would help to reduce the largest energy consumption in households. The article further indicates that if the ALP is successful in the next election, it will offer low interest loans of $10,000 to implement power and water saving measures such as solar panels, rainwater tanks, roof insulation, solar hot water heaters, awnings and grey water recycling systems.
While the article does not comment directly on the construction industry, the budget measures will have a significant impact on residential builders and developers who are likely to experience a higher demand for water and energy saving devices in new homes. They should also be aware of the grants as a ‘value add’ that they can recommend to their clients, as they would significantly reduce the cost of building a sustainable home. It further illustrates how the state of the construction industry is often shaped by outside forces, in particular political decisions and policies.
http://www.industrysearch.com.au/News/Goverment_counting_on_green_homes_to_cut_emissions-25879
It has also been noted in the article that the budget does not provide for solar water heaters which would help to reduce the largest energy consumption in households. The article further indicates that if the ALP is successful in the next election, it will offer low interest loans of $10,000 to implement power and water saving measures such as solar panels, rainwater tanks, roof insulation, solar hot water heaters, awnings and grey water recycling systems.
While the article does not comment directly on the construction industry, the budget measures will have a significant impact on residential builders and developers who are likely to experience a higher demand for water and energy saving devices in new homes. They should also be aware of the grants as a ‘value add’ that they can recommend to their clients, as they would significantly reduce the cost of building a sustainable home. It further illustrates how the state of the construction industry is often shaped by outside forces, in particular political decisions and policies.
http://www.industrysearch.com.au/News/Goverment_counting_on_green_homes_to_cut_emissions-25879
Labor won't tolerate anarchy on construction sites
This article, published on 16 May 2007, reports that the Federal Australian Labor Party has plans to abolish the Australian Building and Construction Commission, should it win the next election, however ALP spokesperson, Julia Gillard defended the proposal throughout the article. Gillard argues that although the ALP does plan to remove the ABCC, it will be replaced with another similar body that she argues will do the same job in a better way.
These assurances do not go far in appeasing builders and construction companies, who have begun to build in “risk of rudd” premiums to their large contracts that are due to start in 2008. This highlights their fear that construction costs will be increased under an ALP federal government where this proposal is implemented.
This article illustrates clearly just how volatile the construction industry is at times and how it is ultimately responsive to outside environmental factors such as political policies of the Government of the day.
http://www.industrysearch.com.au/News/Fed_Labor_wont_tolerate_anarchy_on_construction_sites-25929
These assurances do not go far in appeasing builders and construction companies, who have begun to build in “risk of rudd” premiums to their large contracts that are due to start in 2008. This highlights their fear that construction costs will be increased under an ALP federal government where this proposal is implemented.
This article illustrates clearly just how volatile the construction industry is at times and how it is ultimately responsive to outside environmental factors such as political policies of the Government of the day.
http://www.industrysearch.com.au/News/Fed_Labor_wont_tolerate_anarchy_on_construction_sites-25929
Impressive Water Conservation at Boral Roof Tile Plant
This article explains how Boral, Australia’s largest supplier of building and construction materials has delivered more than a 65% reduction in mains water usage at its Carole Park roof tile plant in Queensland over the past 12 months. The article discusses how the sweeping changes at Boral have been a result of stage 4 and 5 water restrictions, and explains how Boral has implemented the changes across its business by developing a ‘Boral water grid’ and completing ‘water efficiency management plants’ for all of its sites in South East Queensland.
Boral has made water conservation one of its five key sustainability priority areas. While the article doesn’t talk specifically about construction, Boral has set an industry wide example in terms of sustainability as the largest supplier for the industry which will have potential flow on effects, increasing the ever mounding pressure for Construction companies and developers to explore environmentally friendly and energy saving alternatives in its developments. The stage 4 and 5 water restrictions currently in place in South East Queensland could quite feasibly be extended to other areas of Australia, forcing builders and other industries to consider their water usage and take active steps to conserve water.
http://www.azobuild.com/news.asp?newsID=3650
Boral has made water conservation one of its five key sustainability priority areas. While the article doesn’t talk specifically about construction, Boral has set an industry wide example in terms of sustainability as the largest supplier for the industry which will have potential flow on effects, increasing the ever mounding pressure for Construction companies and developers to explore environmentally friendly and energy saving alternatives in its developments. The stage 4 and 5 water restrictions currently in place in South East Queensland could quite feasibly be extended to other areas of Australia, forcing builders and other industries to consider their water usage and take active steps to conserve water.
http://www.azobuild.com/news.asp?newsID=3650
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