Construction Industry Snapshot. Western Australia
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1 Construction Industry Snapshot Western Australia January 2015
2 Contents 1. Executive Summary The Workforce Building Approvals & Commencements in WA Construction Work Done Apprentice Commencements Apprentice Training Rates Apprentices In Training Employment of Females Employment of Aboriginal and Torres Strait Islanders Traineeships in the Industry... 9 Published by the Construction Training Council Released January 2015 This report is published on a bi-monthly basis. Although this report is dated January 2015, it should be noted that data is taken from various sources that are, in some cases, related to previous monthly/quarterly results if they are the most recent. ABS Data relates to the most recent quarters/months of In this version of the Snapshot care must be taken when interpreting any comparison of data from different quarters or months. Unless otherwise stated, all apprenticeship and overall training data was current from the TRS datacube as at end of October All interpretations and conclusions drawn from this data are those of the Construction Training Council.
3 1. Executive Summary This report provides up-to-date data on economic, employment and training issues affecting the Construction Industry in Western Australia. The Construction Industry employs 10.38% of the overall State workforce. There were 145,710 people working in the Construction Industry as at November 2014, with an annualised average of 141,750 in the previous twelve month period. The Industry workforce increased by 4,420 people in the last quarter. On a year-to-year comparison up to the end of October 2014 there was a 31.45% increase in Construction apprentice commencements (excluding Electrical) and an increase in Electrical apprentice commencements of 14.31% 1. As at October 2014, the Industry including electrical, employed over 43% of all Western Australia s apprentices 2. Western Australia s estimated resident population grew by 2.2% for the year to June This figure compares favourably with Victoria (1.9%) and both Queensland and New South Wales (1.5%). The Western Australian seasonally adjusted unemployment rate was 5.2% during November 2014, up from a rate of 5.1% in October This still compares favourably to the National rate of 6.3%. The seasonally adjusted participation rate in Western Australia increased to 69.0% in November 2014 up from a rate of 68.9% in October It is estimated that approximately 24,000 Construction Industry employees are working on Resource Industry infrastructure construction projects. The value of Residential and Non-Residential Construction Work, excluding Heavy Engineering, in the year to September 2014 increased by 8.1% compared to September The Engineering Construction sector, excluding Heavy Engineering, decreased by 3.3%* in Western Australia between June 2013 and June The Housing sector has in recent months recovered with annual dwelling unit approvals to November 2014 at 31,821 (24,048 houses), compared to a previous peak of 27,196 (21,949 houses) at November Seasonally adjusted, building approvals for all dwelling units increased by 1.2% between October and November There was an increase of 5.2% over the three months to November Trend building approvals in Western Australia increased by 0.9% between October 2014 and November 2014 and rose by 14.5% over the year. Seasonally adjusted, dwelling commencements increased by 2.0% in the quarter to June 2014; and on an annualised basis compared to June 2013 commencements increased by 20.1%. *Note: This figure is derived from ABS data that is currently not available for publication. Please see note 8 on page 6 for explanation. 1 TRS Datacube 2 Using comparison to All Industries data TRS Datacube 3 ABS and Construction & Engineering Work Done 4 ABS (Seasonally Adjusted) January 2015 v
4 2. The Workforce WORKFORCE IN CONSTRUCTION +3.88% 136, ,750 ABS Annualised 5 3 Months 6 % Change over Period +3.88% +3.13% The industry currently employs 10.38% of the State workforce as at November TRADESPEOPLE IN CONSTRUCTION (Excluding Electricians) +3.77% 44,475 46,150 Annualised 3 Months % Change over Period +3.77% -7.82% These figures reflect the highest number of tradespeople in the industry in over 10 years. TRADESPEOPLE IN CONSTRUCTION (Including Electricians) +2.63% 63,600 65,275 ABS E08 Annualised 3 Months ABS E08 % Change over Period +2.63% -1.00% Electricians account for 29.30% of all tradespeople in Construction with a proportion of these working in the Mining/Resource sector. 5 This refers to a full year comparison to previous year 6 This refers to previous quarter January 2015 v
5 3. Building Approvals & Commencements in WA 7 BUILDING APPROVALS Total Dwelling Units (Seasonally Adjusted) % 27,674 31,821 ABS Annualised 3 Months 1 Month % Change over Period % +5.21% +1.22% The one year percentage, same month comparison (November 2013 compared to November 2014) shows an increase of 6.97%, this is a significant drop from the % at the same time last year. BUILDING APPROVALS Total Houses (Seasonally Adjusted) % 21,782 24,048 Annualised 3 Months 1 Month ABS % Change over Period % +0.36% -1.71% The one year percentage change, same month comparison (November 2013 compared to November 2014) shows a 0.21% increase, this is a significant drop from the % at the same time last year. DWELLING COMMENCEMENTS (Seasonally Adjusted) % 24,184 29,048 Year to Jun 2013 Year to Jun 2014 Annualised 3 Months 1 Month ABS % Change over Period % +2.0% n/a The one full year-to-year change shows an increase for Western Australia of 20.11%. This follows an increase of 35.89% at the same time last year. 7 ABS & January 2015 v
6 4. Construction Work Done 8 RESIDENTIAL, NON-RESIDENTIAL & ENGINEERING CONSTRUCTION (Excluding Heavy) (in $000 s) +1.40% (in $000 s) $30,157,872 $30,578,994 Year to Sep 2013 Year to Sep 2014 Annualised 3 Months 9 % Change over Period +1.40% % ABS and ABS Construction Work Done is the combination of all residential and non-residential building plus Engineering Construction excluding Heavy Engineering. Engineering Construction (exc. Heavy) sector accounts for almost 57% of all activity. RESIDENTIAL CONSTRUCTION (Original) (in $000 s) % (in $000 s) $6,918,291 $7,830,360 Year to Sep 2013 Year to Sep 2014 Annualised ABS and ABS Months % Change over Period % -1.42% Residential Construction has increased over the year to a level higher than September NON-RESIDENTIAL CONSTRUCTION (Original) (in $000 s) +1.58% (in $000 s) $5,435,485 $5,521,471 Year to Sep 2013 Year to Sep 2014 Annualised ABS and ABS Months % Change over Period +1.58% % In 2005, Non-Residential Construction was approximately 38% of the value of Residential Work Done. At September 2014 it was approximately 70% of Residential Work Done. 8 Due to ABS release dates and data not being available for publication, Engineering Construction data is included using the previous quarter data and has a relative standard error of 10% to less than 25% and should be used with caution. 9 Compared to previous quarter. January 2015 v
7 5. Apprentice Commencements 10 Following a peak in 2010 and decline in the following two years, the trend has been an increase in commencements in most individual trades since The increase of commencements during this period will have a positive impact on the number of apprentices in training over the next 36 months. Given the recent significant growth in industry activity it is important to maintain this increase in commencements in order to sustain the Industry s future skilled workforce needs. Construction apprentice commencements, (excluding Electrical) during the year November 2013 to October 2014 have improved by 31.5% compared to the same twelve month period November 2012 to October Overall, commencements have increased by 24.6% comparing the year November 2013 to October 2014 to the same twelve month period November 2012 to October The Electrical apprentice commencement figures have recovered after declining in the first half of the year. Figures indicate a healthy growth of 14.3%. All trades have seen an increase in apprentice commencements with Bricklaying increasing by 59.1% and Wall and Ceiling Fixing increasing by 77.2%. The following chart includes the 12 month period to the end of October 2014.* *NB: figures based on full years, January to December figures based on November 2013 to October The following chart shows the comparison between the 12 months; November 2013 to October 2014 compared to November 2012 to October Commencements are training contracts that have occurred in comparative 12 month periods. January 2015 v
8 6. Apprentice Training Rates 11 Over the last five years there has been a significant decline in training rates for a number of Construction trades but an increase in others. Training Rates Trade % change Electrical Mechanics % 17.46% 28.16% Carpentry & Joinery % 8.58% 14.50% Plastering % 1.49% 1.80% Plumbing & Gas % 16.26% 13.26% Bricklaying % 9.68% 3.67% Painting & Decorating -5.73% 5.75% 6.10% Roof Plumbing % 11.00% 8.80% *Wall & Floor Tiling (Tilelaying) -1.96% 5.00% 5.10% The noticeable increase in the training rate in Bricklaying corresponds to the significant recent increase in commencements over the last 12 months. *Note: There has been a significant decrease in the Training Rate for Wall and Floor Tiling since the November 2014 Snapshot figures were published. This anomaly can be attributed to the recent ABS data ( ) displaying figures for the first time since February 2014 for Wall and Floor Tiling (Tilelaying) tradespeople. 7. Apprentices In Training 12 Overall the in training figures appear to be improving during the year; this may be due partly to the number of apprentices being retained in the Industry and the impact of various State and Federal initiatives as well as the recent increase in overall commencements. This chart shows that there are now more combined Construction trade apprentices in training than apprentice electricians. However the number of electrical apprentice commencements over the last few months has continued to show a steady recovery with a 14.31% increase in October Training Rate is the number of apprentices in training compared to the number of tradespeople in the specific industry as stated by ABS , ST_E08 12 In Training is the total number of apprentices currently in a contract of employment as an apprentice. January 2015 v
9 8. Employment of Females There are currently 77 female apprentices in training. Over the last 10 years the overall percentage of female apprentices in Construction has risen from 0.88% to 1.87%. The number of female trainees in training is currently 30 and has risen from 3.29% to 4.05% over the last 10 years. Although there is no definitive research into the reasons for the increase, one factor has been increased promotion of women in trades by the Construction Training Fund and organisations such as TradeUp Australia and NAWIC (National Association of Women in Construction - WA). 9. Employment of Aboriginal and Torres Strait Islanders There are currently 166 Aboriginal and Torres Strait Islander (ATSI) apprentices in training. Over the last 10 years the overall percentage of ATSI apprentices has risen from 3.28% to 4.04% which is indicative of the number of ATSI people in the general population. Currently there are 73 trainees in training with an ATSI background which represents approximately 9.86% of all Building and Construction trainees. This increase appears to coincide with a concerted effort to recruit ATSI people by the Civil Construction sector. 10. Traineeships in the Industry The following chart shows the number of trainees in training at the end of October Note: there are also an additional 96 trainees in Civil Construction Supervisor (Level 4) but registered as employed in the Mining and Resource sector. Traineeship ASSISTANT BUILDING SURVEYOR (LEVEL 5) 0 BITUMINOUS SURFACING (LEVEL 3) 1 BUILDING AND CONSTRUCTION PARA PROFESSIONAL (LEVEL 2) 2 BUILDING AND CONSTRUCTION TRADE TRAINEE (LEVEL 2) 7 BUILDING MAINTENANCE (LEVEL 2) 18 CIVIL CONSTRUCTION (LEVEL 2) 4 CIVIL CONSTRUCTION (LEVEL 3) 150 CIVIL CONSTRUCTION DESIGNER (LEVEL 5) 1 CIVIL CONSTRUCTION MANAGER (LEVEL 5) 0 CIVIL CONSTRUCTION SUPERVISOR (LEVEL 4) 0 DOGGING (LEVEL 3) 11 DRAINAGE (LEVEL 2) 13 ESTIMATING (HOUSING) (LEVEL 4) 16 GENERAL CONSTRUCTION (LEVEL 2) 54 PIPELAYING (LEVEL 3) 56 PLANT OPERATIONS (LEVEL 3) 85 RESIDENTIAL DRAFTING (LEVEL 4) 6 RIGGING (LEVEL 3) 65 ROAD CONSTRUCTION AND MAINTENANCE (LEVEL 3) 54 ROAD MARKING (LEVEL 3) 11 SCAFFOLDING (LEVEL 3) 2 SITE MANAGEMENT (LEVEL 4) 41 STEEL FIXING (LEVEL 3) 141 TRENCHLESS TECHNOLOGY (LEVEL 3) 13 Building & Construction (TOTAL) 751 Mining & Resources Sector - Civil Construction Supervisor (Level 4) (RII40709) 96 There are currently 751 trainees in training, primarily in the Civil Construction sector. It is pleasing to see the overall growth in the numbers of traineeships in recent years. There has been a 54.2% increase since the 2008 figure of 487 trainees in training. January 2015 v
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