Hays Construction
January - March 2012
Hotspots
The Northern Territory, Queensland and Western Australia are the states to watch this quarter for construction recruitment activity.
In the Northern Territory we will see high demand for Contract Administrators, Estimators and Project Managers given the commencement of major projects in 2012/2013.
In Queensland, an increase in approvals for construction across all fields is leading to high demand for engineering design and civil construction candidates. Civil Estimators and Commercial Estimators are needed to tender on new projects. Design Engineers are also needed for Road Design due to infrastructure upgrades. Electrical skills will be needed for work on major projects and small construction.
Regional Queensland needs Civil Project Managers and Civil Project Engineers in response to the mining boom.
Western Australia's construction recruitment market looks very positive, with a marked increase in recruitment in the residential market creating demand for Estimators, Contract Administrators and Scheduling staff. In the metropolitan construction market Quantity Surveyors, Estimators and Contract Administrators will be needed, and we are also seeing an increased demand for OH&S staff from a construction background.
Civil Engineers, both construction and design, will remain in high demand since these candidates are attracted away from construction by the salaries offered in the resources and mining sector. Building Surveyors will also be needed. While the new Building Act legislation has been postponed, it is still on the horizon and thus many people are moving to private companies. Again, the salaries on offer are a motivating factor.
Western Australia's regional construction market continues its strong growth due to the mining boom. We will see an upswing in all roles within construction and the modular, transportable housing sector. Positive residential and commercial markets coupled with a strong demand for Australia's natural resources is increasing demand in regional areas for housing and the development of non process infrastructure and associated works in the mining industry, such as camp construction to house workers in the Pilbara and the Kimberly.
In Tasmania, Civil Engineers and Civil Project Managers with experience across irrigation, water and sewerage and rail will be sought as investments in these critical services increases. In addition, some big ticket civil projects which have recently been announced will see large contractors across the state seek civil expertise. Given the pipeline for building projects, overall spend is likely to surpass the building spend seen in 2011. This will fuel demand for Building Estimators and Senior Project Managers.
Finally, Victoria's housing market has noticed a slight increase in activity as a result of the November and December 2011 interest rate cuts. With the possibility of future rate adjustments, builders are forecasting a rise in enquiries and sales towards the end of the first quarter of 2012 with activity expected to rise throughout the year. As a result, experienced Building Supervisors are in demand, particularly within Melbourne's West, while Estimators will be a hotspot of demand over the next six to 12 months.
In the state's commercial construction market, Contracts Administrators and Site Managers are needed to deal with the projected influx of larger projects. Meanwhile in civil construction, the Regional Rail Link will be the focus and will involve numerous principal contractors across seven packages. Other major rail projects are at feasibility stage but will not be announced until 2013. Land development projects will remain active, as will the building industry which will of course involve civil works.
Overcoming skills shortages
To overcome the skills shortages noted above, employers are proactively ordering temporaries prior to project commencement and ensuring remuneration meets market demand. They are also looking to national and international recruitment campaigns.
Public sector organisations are promoting the unique benefits of the sector, but want candidates with significant experience in the roles. As a result, they are still facing a skills shortage. In contrast, those employers who consider candidates with the foundation knowledge that they can then build on are overcoming skills shortages.
Given the economic turmoil in the UK and Irish construction sectors, more good quality Quantity Surveyors are arriving in Perth. Companies that hitherto had been reticent in offering sponsorship to these candidates have now become more proactive in considering these candidates. With Quantity Surveyors included on the skills shortage list, the ease of obtaining the correct visas and the associated cost is making the process of offering permanent employment much more of a first option rather than a last resort.
The coming quarter
Western Australia is the state to watch. Western Australia's construction recruitment market looks very positive, with an upswing in projects. Despite uncertainty in worldwide economic markets, the easing of financial pressures on construction companies, the drop in interest rates and the potential for further falls in the base rate will stimulate the residential and commercial markets. Coupled with a strong demand for Australia's natural resources, the outlook is positive.
We have spoken to numerous employers in Western Australia who have a far more positive outlook for the market across the state as a whole. We expect strong demand for all disciplines be it in a temporary or permanent capacity as the recruitment sector ramps back up after the Christmas and New Year break.
The Northern Territory will also see new temporary and permanent jobs created this quarter as employers prepare for a busy 2012 dry-season. The construction, mining and oil & gas sectors are all expecting increased activity and will start targeting staff early this quarter.
Queensland employers will also be active as they seek to secure good talent before their competitors. There will be new construction and industrial maintenance roles as the mining sector attracts candidates. Meanwhile the announcement of the Commonwealth Games will also create activity, initially for non-associated construction. While this will not be immediate, demand should begin to build over the coming months. In regional Queensland, permanent jobs will be the focus.
New South Wales' construction market is not so positive and in fairly stark contrast to the mining states.
In Tasmania, key commercial and infrastructure projects have been announced, resulting in a much anticipated increase in construction activity for the coming quarter. State investments and improvements to rail, irrigation and water and sewerage will lift over the next quarter, as will announcements on the third stage of the NBN. The Tasmanian construction sector is looking forward to a busier first quarter and year ahead.
Victoria's commercial construction market will start the quarter quietly but the announcement of large projects due at the beginning of February will lead to a strong end to the quarter and a positive second quarter.
Executive recruitment
At the executive level we will see activity in the Northern Territory for Project Directors and Senior Project Managers with experience delivering major infrastructure projects, and in Queensland for high level Engineers and civil construction candidates. In New South Wales there is some interest in senior level candidates from top tier and stronger mid tier builders.
Employer trends
In our active mining states, employers are increasing salaries and planning to offer project completion incentives or bonuses to aid in the retention of key staff. They are also becoming more flexible with hiring candidates who may not have the full skill set but are qualified.
Employers are moving quickly for the right candidate, although there is still some reticence in the market due to the competitive tender process. Having said this, the competitive tender market is also fuelling the demand for financial and project management skills.
Candidate trends
While in New South Wales there has been an increase in candidate levels due to a number of redundancies, in Queensland and Western Australia there has been a decrease in candidate levels. This is due to the mining boom, the increase in employers making counter offers and larger sites offering EBA rates to attract candidates.
Western Australia has however seen an increase in Building Surveying candidates who are on the brink of qualifying to be certified.
In the Northern Territory many local candidates have relocated interstate to target more stable or lucrative projects. Although this is part of the seasonal nature of the Territory's employment market, it will be difficult to attract many back since national demand is also increasing.
There has been an increase in the number of international candidates entering the market with very cost effective attitudes to remuneration in order to secure a long-term role with an employer who will offer sponsorship.
