According to IBISWorld industry analyst Alen Allday: "with weaker residential and non-residential building construction activity in 2011- 12, industry revenue is estimated to decrease 2.6% for the year to $1.67bn".
Over the five years through 2011-12, industry revenue is estimated to have declined by an annualised 1.8%, with moderate fluctuations from year to year.
Residential construction activity increased steadily in 2006-07 and 2007-08, largely due to high demand and the First Home Owner Grant, while commercial and industrial construction activity increased rapidly.
As residential and non-residential building construction activity declined significantly in 2008-09, industry output fell.
Despite increased construction activity in 2009-10, industry revenue declined due to lower output and prices. Industry output increased strongly in 2010-11 as the construction sector increased inventory levels. This is expected to be followed by a relatively large decline in 2011-12 as construction levels remain weak. in 2012-13.
"The outlook for the industry depends on downstream demand from the construction sector in Australia and other wood product manufacturing industries", Mr Allday adds.
