Engineering construction activity June quarter 2017

Engineering construction work done

In the June quarter 2017, the trend value of engineering construction work done in the Territory decreased by 3.2 per cent to $1.3 billion compared to the previous quarter.

In 2016-17, engineering construction work done in the Territory decreased by 12.7 per cent to $5.5 billion (Chart 1). This follows a period of record levels of engineering construction activity and reflects a number of major projects that have recently been completed or are nearing completion; however total engineering construction work done in the Territory remains above the 10 year average of $4.0 billion.

The year on year decline was largely driven by a 12.5 per cent decrease in private sector work, to $5.2 billion. The main driver of the decline was heavy industry engineering construction work done (down 11.7 per cent to $4.8 billion).

The decline was partly offset by a 5.5 per cent increase in public sector engineering construction work done, to $422 million. This was driven by increases in work done on bridges railways and harbours (to $31 million) and electricity generation, transmission infrastructure and pipelines (to $22 million).

The Territory recorded the second lowest year on year decline in the value of engineering construction work done in 2016-17, behind Western Australia with a decline of 34.6 per cent (Chart 2). Nationally, the value of engineering construction work decreased by 10.3 per cent to $84.9 billion.

Engineering work commenced

In the June quarter 2017, the value of some components of engineering construction work commenced in the Territory was confidentialised for the private sector.

Heavy industry private engineering construction work commenced increased more than threefold to $675 million in 2016‑17, due to a strong result in the June quarter 2017.

Public sector work commenced decreased by 9.7 per cent to $324 million in 2016-17, largely driven by declines in work commenced on roads, highways and subdivisions. This was partly offset by work commenced on water storage and supply, sewerage and drainage, which almost doubled in the year.  The decline in public work commenced in 2016-17 follows record levels of public engineering construction work done over the past few years (Chart 3).