New figures from GlobalData show that the construction sector in Australasia is healthier than in most other regions, but there are signs of emerging issues.
Australasia has received an overall score of 0.63 on GlobalData’s March 2022 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion.
Every construction project in GlobalData's database is assigned a score of between 5 and -5 based on its current progress, a score which is continually updated over time. These are then weighted by the value of each project in order to come to overall scores for countries, regions and sectors.
That score puts Australasia in 4th place out of 11 regions, and is a decrease on its score from January 2022 (0.98). One reason for Australasia's relatively good performance in the index is its institutional sector, which scores 0.76, putting it in 5th place out of 11 regions worldwide. Australasia's commercial & leisure sector, by contrast, has performed somewhat worse, with a score of 0.48 (putting it in 6th place globally).
Within Australasia, construction projects are proceeding with fewest obstacles in New Zealand, which scores 0.71 in the index. The situation in Australia, however, is somewhat less positive with a score of 0.63.
The deterioration of the construction pipeline in Australasia is partly due to issues in the region's industrial sector, which has seen its score on GlobalData's Construction Project Momentum Index fall from 1.14 in January 2022 to 0.6 in March 2022.
The construction sector is also increasingly struggling to meet deadlines in Australia, which has seen its score on the index go from 0.87 in January 2022 to 0.63 in March 2022.
The Construction Project Momentum Index
GlobalData's Construction Project Momentum Index is based on analysis of thousands of individual construction projects around the world.
Each project is continually monitored for updates, with updates indicating progress increasing the project's score while updates indicating delays or cancellations reduce the score. The score always sits between 5, the best possible score, and -5, the worst.
The scores for individual projects are then weighted based on their significance in order to create combined indices for each region or sector.
Events that can reduce a project's score include the project being cancelled or put on hold, delays, the rejection of applications or tender bids or the reducing of the project's scope.
Events that can increase a project's score on the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.