Expected Downturn in Construction

The Master Builders Association of Australia have announced that their members expect a downturn in business of around 20% in 2009.

 “Builder sentiment plummeted in the December quarter 2008,” says Peter Jones – Master Builders Australia Chief Economist.

“There was a worsening and sharp fall in expectations for own business activity, profits and investment and, disturbingly, builders are now signalling that they intend to cut employees and subcontractors in the period ahead.”

It is still unclear what effect such a fall in construction would have on Architecture and the Australian Institute of Architects are yet to take a formal position.

However, Howard Tanner of Tanner Architects has told indesignlive he expects the profession may be even harder hit.

“Basic building may be less affected than architecture in the downturn. The MBA members expect a 20% downturn, I would suspect that architecture may experience a slightly greater downturn, perhaps 25% to 30%,” he said.