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1301.0 - Year Book Australia, 2012  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 24/05/2012   
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Construction

CONSTRUCTION INDUSTRY

The contribution of an industry to the overall production of goods and services in an economy, gross domestic product (GDP), is measured by industry gross value added (GVA). Information on the relationship between industry GVA and GDP is provided in the INDUSTRY STRUCTURE AND PERFORMANCE chapter.

The total production of the Construction industry, as measured by industry GVA (in volume terms), is shown in graph 21.1. After a decline in 2000–01, construction production continued its growth, reaching $102 billion in 2010–11. In 2010–11, the Construction industry's share of the total production of goods and services in the Australian economy was 7.7%.

Graph 21.1 Construction production(a)(b)


Table 21.2 shows average annual employment for each component of the Construction industry. In 2010–11, the industry employed an average of 1,033,900 people, 3% higher than in 2009–10. Construction services was the largest employer, with an average of 695,100 people in 2010–11.


21.2 CONSTRUCTION INDUSTRY(a), Employment(b)
2009–10
2010–11
ANZSIC Subdivision
'000
'000

Building construction
233.0
230.5
Heavy and civil engineering construction
69.9
70.2
Construction services
657.9
695.1
Construction n.f.d.(c)
43.1
38.1
Total construction
1 003.9
1 033.9

(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 edition (1292.0).
(b) Annual average of quarterly data.
(c) Not further defined. Insufficient detail collected from survey respondent to allocate data to a specific industry code.
Source: Labour Force, Australia, Detailed, Quarterly (6291.0.55.003).


Table 21.3 shows selected economic indicators for the Construction industry. In 2009–10, wages and salaries were $43 billion, an increase of 5% from 2008–09. This was mainly due to increases in wages and salaries for Heavy and civil engineering (12%) and Construction services (4%).


21.3 CONSTRUCTION INDUSTRY(a), Selected performance measures
Business profitability

ANZSIC subdivision
Wages and
salaries(b)
Total income
Sales and
service income
(c)
Operating
profit before
tax
Capital
expenditure(
d)
Industry
value added
Profit margin
Businesses
that made
a profit
Businesses that broke even
Businesses that made a loss
$m
$m
$m
$m
$m
$m
%
%
%
%

Building construction
2008–09
8 865
103 601
102 458
3 826
7 685
18 007
3.7
67.3
1.2
31.5
2009–10
8 912
110 276
108 679
6 734
8 535
19 101
6.2
68.1
1.2
30.7
Heavy and civil engineering
construction
2008–09
8 858
45 258
43 921
3 346
3 391
14 627
7.6
69.8
0.1
30.0
2009–10
9 927
49 187
47 078
3 601
3 298
16 043
7.6
84.1
0.2
15.7
Construction services
2008–09
23 126
116 094
113 775
16 107
7 088
46 265
14.2
78.2
1.6
20.2
2009–10
24 079
121 338
119 533
16 330
5 869
48 679
13.7
77.8
1.3
20.9
Total construction
2008–09
40 849
264 953
260 154
23 280
18 164
78 899
8.9
75.9
1.5
22.6
2009–10
42 918
280 802
275 290
26 665
17 702
83 822
9.7
76.3
1.2
22.5

(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 edition (1292.0).
(b) Includes capitalised wages and salaries. Excludes the drawings of working proprietors.
(c) Includes rent, leasing and hiring income.
(d) Includes capital work done for own use.
Source: Australian Industry (8155.0).


Between 2008–09 and 2009–10, total income for the Construction industry increased by 6%, to $281 billion. Capital expenditure decreased overall by 3% between 2008–09 and 2009–10, with a fall of 17% in Construction services, partly offset by an increase for the Building construction industry of 11%.

The operating profit before tax of the Construction industry increased by 15% in 2009–10, to $27 billion, while the profit margin of the industry increased to 9.7%. A profit was made by 76% of businesses in the Construction industry in both 2008–09 and 2009–10,

 

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Statistics contained in the Year Book are the most recent available at the time of preparation. In many cases, the ABS website and the websites of other organisations provide access to more recent data. Each Year Book table or graph and the bibliography at the end of each chapter provides hyperlinks to the most up to date data release where available.


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