The construction industry is a significant driver of economic activity in Australia. In all of its forms it is Australia's third largest industry, behind only mining and finance, and produces around 8% of our Gross Domestic Product (GDP), in value added terms. It directly employs approx. 1.2m people (around 9% of the total workforce).
It produces the buildings and infrastructure that are essential to the operation of all other industries, adds to the wealth and capital stock of the nation and underpins the productivity improvements that are necessary to support our future prosperity and incomes. Demand for construction activity is driven by economic factors including population growth, income growth, industry activity, technology changes, commodity cycles, consumer sentiment, interest rates and inflation.
Government policies affecting the industry, pricing and infrastructure development (including taxation, land allocation, industrial and planning policies) are key influences. The availability, price and location of resources, including skilled labour, building materials and building equipment are other key determinants of the pace of growth in the industry.
The supply chain for construction is complex and strongly interrelated, encompassing manufacturing (materials, equipment components), services (engineering, design, surveying, consulting, lease management) and traditional construction trades.
The broad nature of the industry and its impact on other industries supported by Ai Group is a key reason why Ai Group devotes significant resources to supporting its members to maintain a sustainable industry for all participants.
The Australian Industry Group (Ai Group) Construction Supply Chain Council is a new voice for our building, construction and infrastructure supply chain members and the Council will link with other key industry associations in developing consistent and timely responses to key industry issues.
The construction industry operates in both the private and public sectors, across three broad areas of activity:
Ai Group's history within this sector traditionally flowed from our representation of the manufacturing, metal (as MTIA we were the major association in the metal construction industry and only employer party to the metal and engineering construction award) and engineering construction and services industries incorporating the construction supply chain.
Our connection has been further developed in conjunction with the establishment in 1999 of the Australian Constructors Association (ACA) to which Ai Group provides policy and management services, as well as our management of the operations of other sectorassociations and groups.