Reforms needed to foster innovation

South Australia’s building and construction sector will continue to invest in improved knowledge to weather the current slowdown and is reliant upon Government for the fundamental reform that will foster that investment.

Data released today by the Australian Bureau of Statistics shows a 7 per cent fall in the annual value of new residential building to $2.4 billion, while non-residential construction has dropped 12.5 per cent to $2 billion over that same period.

While the value of construction activity remains higher than 10-year averages, a combination of factors is driving long-term change, Master Builders SA policy and communications director Russell Emmerson says.

“The value of new building activity in South Australia is 2.2 per cent higher than the 10-year average, which is failing to keep up with inflation,” he said.

“The sector is filled with businesses that are investing in innovation and looking for productivity improvements so they can continue to deliver the best product and service. But given the rapid fall in activity recorded in today’s figures and the obvious slowdown in the State’s building approvals, it has to be asked where the next wave of productivity improvements will come from?

“Clients will continue to invest in the very best and the South Australian building and construction sector will continue to invest in the next wave of improved knowledge.

“If the State Government backs the essential reforms proposed by Master Builders SA last year, we can all look forward to a stronger economy that will continue to invest in the jobs needed throughout the State.”

Our full release can be found here.