Australian Bureau of Statistics
8762.0 - Engineering Construction Activity, Australia, Mar 2012 Quality Declaration
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 04/07/2012
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FEATURE ARTICLE: A CLOSER LOOK AT MINING IN ENGINEERING CONSTRUCTION
WA and Qld comprise a major proportion of the total value of Heavy Industry, with 82% (48% in WA and 34% in Qld) of all activity in 2010-11. These two states accounted for $24.1b of a national Heavy Industry activity value of $29.4b, both record totals in survey history. This was the fifth consecutive year their combined contribution totalled at least 75% of all Heavy Industry activity in Australia.
STATE HEAVY INDUSTRY DETAIL
In 2010-11, WA and Qld each recorded 86% of Heavy Industry activity in two commodities. The largest contributors to WA Heavy Industry activity were Oil, gas and other hydrocarbons (48% in 2010-11) and Other minerals (an additional 38%). In Qld more than half of Heavy Industry activity occurred in Coal and coal handling (52% in 2010-11) plus about one third (34%) in Oil, gas and other hydrocarbons. In 2010-11, both WA ($14.1b or 65%) and Qld ($9.9b or 65%) had Heavy Industry activity totalling about two thirds of all engineering construction activity value for their state.
The value of WA Heavy Industry alone has made up at least 25% of Australian ECS activity for six consecutive years. Recent WA Heavy Industry value of work growth (from 2009-10 to 2010-11) was driven by Other minerals which increased $840m in this period, resulting in a state-based activity increase from $13.3b to $14.1b. The increase in Other minerals is equal to the total activity value increase in WA Heavy Industry from 2009-10 to 2010-11. Decreased activity in Oil, gas and other hydrocarbons (-$470m) in the year offset increased Bauxite, alumina and aluminium activity (+$470m).
WA Heavy Industry construction activity reached a then record total of $6.6b in 2005-06, including $2.7b (41%) in Oil, gas and other hydrocarbons and $2.9b (43%) in Other minerals. In 2006-07 Heavy Industry activity value increased to $9.0b, driven by increases in Other minerals to $5.1b (56% of total) and in Oil, gas and other hydrocarbons to $3.2b (36%). Oil, gas and other hydrocarbons and Other minerals accounted for 93% of WA Heavy Industry activity in 2007-08 ($5.3b each).
Qld Heavy Industry activity reached an all-time high of $9.9b in 2010-11, a 55% increase from 2009-10, and 18% of total ECS activity by value in Australia. The increase of $3.5b in 2009-10 was driven by increases in both Oil, gas and other hydrocarbons (+$2.7b) and Coal and coal handling (+$780m). For the sixth consecutive year Qld Heavy Industry alone contributed at least 10% of engineering construction activity in Australia.
Recently Oil, gas, and other hydrocarbons construction activity in Qld has increased substantially. In each year from 2002-03 to 2006-07 less than $100m of activity was reported for this asset type. Activity increased to just over $200m in 2007-08 and 2008-09 before rising to $700m in 2009-10. In 2010-11 Oil, gas and other hydrocarbons activity spiked to $3.4b, a total greater than the previous 24 years combined. Coal and coal handling activity has risen each year between 2007-08 and 2010-11 at a steadier rate, from $2.6b to $5.1b, with the smallest annual increase being $600m between 2008-09 and 2009-10.
Australia is experiencing a sharp rise in private investment in engineering construction activity to deliver an increased capacity for the production of oil, natural gas, coal, iron ore, bauxite, alumina, aluminium and other resources as part of the resources boom. There is evidence that the high level of engineering construction activity in the resources sector will continue for some time, in that the Heavy Industry Value of Work Yet to be Done reached its second highest estimate ever of $92.6b in the March 2012 quarter. This indicates that Heavy Industry will remain an important contributor to ECS in the near future and that ABS trend data in ECS activity continues to rise.
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This page last updated 2 October 2012