Property & Construction

The Australian Property and Construction Industry faces challenging times into the next decade with the continued scaling back of investment in residential building and heavy industry projects. This will be partially offset by growth in commercial, industrial and institutional construction and over the longer term by growth in road, highway and transport construction.

How We Help Clients in the Property & Construction Industry

We understand the diversity of the property and construction market and that all firms are not the same. Our approach is tailored to address the individual needs of clients.

Business Strategy

The cyclical nature of the industry means construction firms need to be clear about where and how they compete. Firms risk “diversifying out of their core market” without a clear strategy. We help clients understand which markets are attractive, how to build competitive advantage and assist them with strategic planning and implementation.

Operating Model Design

We work with clients to transform key elements of their operating model to support their strategy. Our focus is to help clients build capability in more sophisticated delivery models and develop the appropriate organisational structure to match their market segment and geographic footprint.

Post-Merger Integration

With M&A a key lever for growth in the construction industry it is imperative that a merger realises value. We assist clients to structure merger integration programs, define clear scope and targets and adopt the appropriate integration methodology and planning approach. We can also assist during the transaction phase and take on the role of a clean team to help with critical pre-merger planning.

Process Improvement

Robust processes are key drivers of project success. Our focus is to assist firms improve their core planning, execution and support processes. Our approach is two fold – to use a continuous improvement approach by understanding the drivers of success and failure of projects, and where appropriate, to assist clients make fundamental changes to processes and workflows.

Challenges and Trends Facing the Sector

The Australian Construction Industry has experienced flat revenue growth of 0.4% over the past five years driven by the downturn in mining construction. The outlook for the next five years appears mixed. Road, highway and transport infrastructure investment will lead the way, however, growth in building construction is expected to slow down in the early part of the next decade.

  • With the financial resources to outbid local developers for sites in Sydney and Melbourne, overseas developers have dominated the proportion of completed apartments. This surge in apartment construction is expected to slow down as the industry faces an oversupply in major capital cities.
  • Private investment on roads, highways and transport infrastructure is dominating the civil market with major projects in NSW, Victoria and Queensland driving growth over the next five years
  • Construction in commercial and industrial markets is expected to slow down in the early years of the next decade as the supply of offices increases and the demand for warehouses and distribution centres is met.
  • Growth in institutional building construction is expected to improve over the next five years, through public-sector funding of education and health care and private equity funding of public buildings, in particular correctional centres through public private partnership (PPP) arrangements.