Category: Latest news

A nation-wide downturn in construction sector commencements suggests a slowdown in the construction industry, the latest ABS data shows.

The decline in building construction follows on from never-before-seen levels of apartment construction in Australia’s two largest states, and the downturn could see the industry return to 2014 levels of activity.

The ABS data shows that the housing market has taken a downturn in Sydney and Melbourne, having the dual effect of lowering housing prices and decreasing jobs in the sector.

The construction industry—including residential building, infrastructure and commercial—is one of Australia’s biggest economic drivers, second only to financial services.

In the year to September 2018, building construction contributed nearly $31 billion to the economy, comprising nearly 2% of the national GDP.

During the industry’s peak period of activity, from 2014 to 2018, up to 20,000 Australian dwellings were approved for construction each month, totalling an increase of 5,000 dwellings to the historical average. The bulk of the approved dwellings were apartments, which boomed during this period.

Developers have turned away from housing and apartment construction since the housing markets in Sydney and Melbourne slowed last year. The ABS data shows that approvals for new residential developments has fallen by 9% in the year up to September 2018.

In addition, construction-stage residential commencements fell by 6%, taking the biggest plunge in half a decade. This translates to a decline in residential commencements of nearly 6%, leading to 3000 less dwellings commenced for the season.

The nationwide downturn in the housing construction sector is led by Victoria, as the state accounts for 90% of the slowdown. Here, apartment and unit construction commencements have fallen by 28% for the season, in contrast to a 5% fall in housing commencements. Meanwhile, unit approvals in Victoria have dropped by 24%.

New South Wales saw a slightly less drastic downturn in activity.

It has been suggested that the role of the construction sector in relation to the strength of the Victorian economy could cause unit prices to drop significantly.

Across the country, the construction industry has had a major role in incremental job increases over the past few years. In Victoria, the construction industry has contributed 1 in 5 of the new full-time jobs added to the state.

ABS jobs data shows that Victorian construction jobs decreased by 6% in the final months of 2018, occurring simultaneously to the downturn in the Melbourne housing market.

The ABS construction and employment data indicates that a slowdown in the creation of new jobs could signal deceased migration to the state of Victoria in the coming years.

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Australia is among many developed countries currently experiencing shortages of skilled workers, especially in the construction industry. The trend has been going since the recession of the last decade, and shows little sign of letting up. Research shows that the construction industry experienced a skills decline of 15.5% in the past year alone.

Why the skills shortage?

The skills shortage in construction can be attributed to factors such as a growth in the sector and subsequent increase in jobs. The skills shortage can also be attributed to an aging workforce and an unwillingness of young people to enter the industry. Construction has lagged behind other industries such as design and information technology in its uptake of change and technology. Thus, it is viewed as a traditional industry and lacks appeal for recent graduates.

But recent bold moves, such as Probuild’s adoption of blockchain technology, indicate that construction companies can catch up with the times. They can also change young people’s perceptions of the industry. By adopting a technology-first approach, construction companies can attract more skilled workers to their ranks.

Technology and construction

The opportunities for technology in construction are endless. New tech can be used to automate tasks or assist workers on site, thereby improving the quality of outcomes, boosting efficiency and reducing risks. 3D modelling, virtual reality and animation are being used to design and build structures faster, while predicting outcomes and reducing waste.

Technology is also helping to smooth the link between designers in offices and builders on site, by implementing design changes in real-time. By utilising more of these technologies and investing in further developments, construction companies can attract skilled workers from the disciplines of computer science, information technology and game design.

What can companies do?

As well as investing in, and implementing, new technologies, construction companies can commence outreach programs to help change the perceptions of young people. This could include interning students from disciplines such as computer science and game design, and showing students how they can use their skills to solve problems within construction. Outreach could also involve partnering with universities to connect students with industry professionals in mentorships.

The industry will also have to tackle its perception as male-dominated, by working towards inclusive environments. By celebrating diversity within current staff, companies can open themselves up to many more skilled workers for generations to come. By adopting new technologies and a willingness to change, construction can offer exciting and meaningful jobs to a young workforce.

Looking for top talent? Contact Quadrant Exec for a consultation today.

Construction is viewed as a traditional, slow-to-change, industry. And in today’s digitised world, it isn’t hard to see why. While industries such as marketing, architecture and design are highly digitised, construction lags behind. According to the APCC report, construction as one of Australia’s least digitised industries.

Drivers of digitisation

With everyone from the CEO to the construction site worker armed with devices, there is a growing need to link all stages of a projects construction through technology. Such technologies improve communications, implement updates in real time, and improve the safety of building sites.

Another driver of digitisation is the increasing gap between the ‘haves’ and ‘have-nots.’ Digitisation in construction would better connect the tech and no-tech areas of the industry, for example, creating more seamless connections between design and architectures stages to the on-site construction stages.

Although slow, digitisation in construction is already taking place, giving digitised companies and sectors over those that are non-digitised. Competition is driving further digitisation.

New technologies

For years now, architects and designers have made use of building information modelling (BIM) and other architecture software platforms. However these technologies are now expanding in usefulness to the entire construction process. For example, BIM can now relay design changes from the planning office to the construction site in real time.

Enterprise content management for construction now allows companies to capture, manage, store and deliver organisational documents. By centralising core business processes onto a single platform, companies improve efficiency and also integrate with platforms and applications relevant to other parts of the business.

AI and machine learning technologies now act as smart assistants in construction, helping teams parse the mountains of complex data involved in the development of a project. AI can prove teams with risk analysis, identifying the top most critical issues that require immediate attention.

Recent tech innovations

Probuild recently signed a deal with Brickschain, a Californian tech startup, as part of their move to digitise and gain a competitive edge in the market. Brickschain will be providing Probuild’s supply chain technology, utilising the cutting edge technology of blockchain.  

Rio Tinto are another company utilising new technology in Australian construction, with their addition of driverless vehicles. This technology is slowly changing the landscape of Australian mines, significantly reducing the manpower required on site, and reducing safety from hazardous site.

The age-old debate over degrees versus apprenticeships continues to rage, sparked by new insights by National Electrical and Communications Association.

Australia’s peak body for electrical employers has claimed that doing an apprenticeship after year 12 is more profitable than going to university.

The controversial claims by the National Electrical and Communications Association were backed by evidence that a newly licensed electrician would be $200,000 better off than a new graduate in the year after each had completed their studies.

The NECA trains roughly one-third of Australia’s electrical apprentices. Each of these apprentices earns about $160,000 during their four-year course, and pays no tuition fees. They then go on to earn between $58,000 and $91,000 in their first year of work.

By contrast, the average university graduate would not earn while learning, unless they had a part-time job, and owe at least $20,000 in student loan debts at the end of a four-year course. In their first year of work they would earn an average of $40,000, after subtracting student loan repayments.

That means that a licensed electrician would have earned $240,000 at the end of their first year at work, in contrast to the graduate’s $40,000.

NECA chief executive, Suresh Manickam, also pointed to the skills shortage in the trades, which would also benefit a recently licenced electrician’s job prospects. According to NECA, 99% of electrical apprentices found jobs when they completed their course.

Despite this great news for those who prefer trades apprenticeships, a major Australian University group has hit back against the claims. Universities Australia has argued that Australia needs both tradespeople and university graduates to power our economy.

UA chief executive, Catriona Jackson, said she was disappointed at NECA’s “rubbishing” of the value of university education, and said it was neither accurate nor helpful to young people who are trying to decide on their futures.

Jackson’s stance was backed by a spokesman from the Grattan Institute, who said the advice given by NECA reflects early-stage career benefits rather than long-term advantages.

While electricians tend to earn more than graduates while both are in their 20s, electrician earnings tend to plateau in their 30s and 40s. By contrast, the earnings of graduates tend to continue increasing, eventually superseding their counterparts in the trades.

Data taken from the Australian Bureau of Statistics also supports this claim, showing that the median salary of someone with a bachelor’s degree is $245 higher per week than someone with a vocational qualification. And the median salary of someone with a postgraduate degree increases to $465 more per week than the vocationally qualified person.

Whether you’re a cost estimator in construction and engineering, or an estimator in another industry, you’ve probably heard all the stereotypes. There are a lot of preconceptions about what estimators do, what their tendencies are, and what they are capable of. But it’s time we busted those common myths about estimators once and for all! Here are some common generalisations and the truths behind them.

Estimators aren’t creative

When telling people that you’re an estimator, the first thing they’re likely to do is comment on how you must be ‘good with numbers’, ‘left-brained’ or ‘very logical’. But how many times have you told someone you’re an estimator to hear them comment on your abilities to think laterally, solve problems and come up with new ideas? Not many, we bet. The common myth is that being an estimator is not as creative as other professions, but on this point, we beg to differ.

They love math

While it’s true that estimators need to be good at math to perform their job properly, loving something and being good at it are two entirely different things. Nevertheless, this fairly benign myth does tend to typecast all estimators as a certain class of person, and it does little to reflect the true diversity within the group. As working estimators will know, maths can sometimes be a very small part of the job, while things like managing people, projects and finances play a huge role.

Women can’t be estimators

There’s no doubt that female estimators for engineering are working in a male-dominated field. Not only are there more male construction professionals than female ones, there is also still a huge gender pay gap in the industry. That said, a lot of work is being done in Australia and abroad to close this gap, attract more women into the industry, and educate upper management on how organisations can be open and hospitable to new female employees.

They’re anti-social

‘Geek’, ‘nerd,’ ‘introvert’—you’ve probably heard them all. But being an estimator doesn’t necessarily equate to lacking social skills. In fact, estimator roles involve more cooperation, teamwork and gut instinct than the average person would expect. Therefore, estimators tend to have excellent people skills, as well as strengths in verbal and written communication. And we personally know plenty of estimators who are anything but shy!

 

 

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The demand for healthcare in Melbourne’s south-east suburb has increased significantly since the Casey hospital opened in 2004. This expansion project will help relieve pressure and improve health services for the local communities.

The Project

This modest 12-year-old community hospital is set to undergo its biggest overhaul yet. The Casey Hospital expansion project is a $135 million construction operation that will provide the infrastructure needed for Casey Hospital’s soon-to-be-opened public healthcare facilities. The 13,000 square metre expansion will create 160 new beds, the hospital’s first intensive care unit, upgraded pharmacy and much much more. At completion, the enlarged Casey Hospital will make space for 300 new staff, and provide education and training spaces for students of Monash university. The expanded Casey Hospital will be equipped to treat an additional 25,000 people each year.

The Players

Behind the Casey Hospital expansion project is Plenary Group, comprising of Plenary Health, Brookfield GIS and Watpac Construction. Fully funded by the Victorian government, the Casey Hospital expansion has created over 90 new jobs during construction alone. Builders Watpac have been responsible for the finalisation of designs, while taking care of the end-to-end construction of the building.

In addition to the Casey Hospital project, Watpac have worked on various other world-class health and science infrastructure assignments across the country. In Victoria, their portfolio of successful projects includes the Frankston Private Hospital, Knox Private Hospital and the Baptcare Residential Aged Care Facility.  

Location

Casey Hospital is located in Berwick, in the outer southeast of Melbourne. With the existing 273-bed Casey Hospital no longer able to sustain the suburb’s rapid growth, the expanded healthcare facility will provide much needed additional healthcare facilities to the area.

The Timeline

Currently under construction, works on the Casey Hospital expansion project began in September 2017 and are due for completion August 2019. Staged handovers are set to take place in July 2018, March 2019, April 2019 and September 2019.

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In the world of HR consulting, there are generally two types of recruiters. The first type are volume-based recruiters, meaning that they fit as many candidates in as many jobs as possible. These recruiters are driven by numbers and data ,and are the most common type of recruiter. The other type are search-based recruiters, also known as headhunters. They discreetly search and approach candidates, and only present one or two ideal candidates to their clients.

In this blog we’ll discuss the perils of volume-based recruitment, and why it is far less effective than search-based recruiting.

1 Lack of industry connections

Volume-based recruiters are notoriously busy. They are frantically dealing with so many people that they forget candidates names and have only superficial understanding of the roles they are hiring for. By dealing with so many people at such a rapid pace, search-based recruiters do not have time to form the deep industry connections that are so crucial to recruitment. On the other hand, a good search-based recruiter will know many leading figures in their industry – both clients and candidates –  and be able to arrange a perfect match.

2 Failure to represent clients and candidates

Imagine a recruiter who reels off your company pitch 5 or 6 times per day. With every recital, his words lose meaning and his tone loses passion. Volume-recruiters have only a superficial understanding of your company and your role, based on the little they’ve gleaned from the brief. How can they represent your business and do your company justice? Not only do they misrepresent clients, they don’t know their candidates personally and will churn people through without even getting a chance to learn their name. Volume-recruiters are also notorious for not following up on the outcomes on a candidate’s application or interview and leaving them in the dark.

3 Recruiters lack the skills of great HR

Companies hire recruiters for their exceptional understanding of people and skills. Volume-based recruiters, working with numbers are relying on data and stats to do their job, and lack (or fail to exercise) what should be their greatest assets – their emotional and social intelligence. Volume-based recruiting defeats the purpose of recruitment services.

4 It gives the client what they want, not what they need

With so much work to do and so many people do deal with, volume-based recruiters turn into “yes men” when facing clients. They will say yes to a client’s brief without using their expertise in HR to push back on requests. A good recruiter will point out that the perfect candidate may not be the person you’ve asked for, and tell you exactly why. Clients don’t always know what their perfect candidate looks like, and they might not know much about recruitment at all.

5 It gives you the wrong person for the role

The toxic combination of time constraints, apathy and yes-yessing clients gives you a recruiter who often, sometimes willingly, puts the wrong candidate forward for the role. By contrast, a search-based recruiter takes the time to understand your role and represent your company with care and attention. They don’t waste your time with multiple or unqualified candidates, and only present one or two that are perfect for the role.

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