Matt Krups

Chairman and Chief Executive Officer, BCI Group

Australia’s construction market dodged the bullet in 2009. What could have become the worst drop in construction demand in living memory ended up as all but a brief downward bounce. Drastic cuts in interest rates by the RBA and aggressive government stimulus spending combined to buffer much of the disastrous impact of the global financial crisis that could have been. Australia reacted smartly and decisively to counter the threat, and is all the better off for it.

International accolades are justified. But just as we’re starting to feel good about ourselves ... what will 2010 bring? Will our happy state of bliss hold up? So much is clear: Cash rates will continue to trend up as they have been the last few months, to around 5% in 2010, and stimulus funding will be reduced – comparatively – to a trickle. The industry will have to grow under its own steam, largely relying on private demand catching up as public demand winds down.

The Australian Construction Forecasting Council, Bis Shrapnel and BCI all agree - with minimal variations - that 2010 will be a mixed bag for the construction sector: a resurging homebuilder’s market, a gradually improving multiresidential market and a continued depressed commercial market still held back by ebbing oversupply and gradually easing access to commercial funding.

While our forecasting colleagues concentrate on the big picture and like to rely on statistical information and forecasting models, BCI’s focus lies on the projects themselves: What work is entering the pipeline, geographically and by sector? How much is travelling through the pipeline to completion? How much seepage out of the development pipeline is there? What are the key projects shaping industry development, and where are the not-so-obvious opportunities? This is where BCI’s key strength lies: identifying opportunities for the ‘smart end of the market’.

By researching well over 5,000 projects each month from early concept to construction we have the finger on the pulse of the market. That’s why smart suppliers, contractors and subcontractors turn to BCI for market opportunities. With knowledge of and with access to these opportunities 2010 will be another year to look forward to with quiet confidence. On behalf of the entire team of BCI I would like to take this opportunity to thank you for your patronage in 2009 and welcome you to embrace with us a successful

New year 2010!