Building industry grows, demands diverse skillset

There's good news on the way for tradies and builders, with the building industry set to grow by leaps and bounds in the next few years. 

That's according to the latest information from business information analysts at IBISWorld, who are forecasting increased revenue for a variety of different businesses over the coming financial year. 

Building societies are set to experience the top growth, expected to increase by 15 per cent over the year. This will take their revenue from a little over $1.2 billion to nearly $1.5 billion by the end of the 2015 financial year. 

While the current low interest rates, underpinned by the lowest Australian cash rate on record of 2.5 per cent, have helped create positive lending conditions, improved affordability and allowed participants to let their assets build up, IBISWorld General Manager Daniel Ruthven says this could soon change, to the benefit of the construction industry. 

"An increase in interest rates, which is possible in the next year, will significantly boost the revenue generated on the current and future asset base of the sector," he said in a July 2 release. 

Mr Ruthven further pointed out that employment and hiring prospects could well see a shake-up in the coming years as a result of changes to the Australian economy. 

"Australia's economic topography is in the middle of a transformation, and we are likely to see more industries seeking employees with specialised skill sets. This will drive upskilling and reskilling in the next five to 10 years," he said. 

Tradies will therefore have to know more than just how to paint a home in the coming years, and expand their skill range to keep up with industry shifts. 

A number of construction companies such as Leighton Holdings and Lend Lease Group have already altered their business model in line with changing market conditions, cutting costs and increasing efficiency through restructuring.