Construction Market Sentiment Survey
2025 Construction market sentiment survey
The latest construction industry market sentiment report, released by the ACA and Arcadis, reveals that better collaboration is the single biggest lever to lift productivity in Australia’s construction industry. The message from industry is clear. Almost 9 in 10 respondents said collaboration is the number one driver of productivity. But instead of working together, clients are falling back on outdated contracts that dump risk on contractors.
The survey highlights that the industry’s challenges are being made worse by labour and skills shortages. With capacity tightening, the only way to do more with less is by working smarter together. Collaboration is no longer optional – it’s the only way to keep projects on track. The survey also shows a clear shift in market activity. Queensland is surging ahead while New South Wales and Victoria settle into a new normal of reduced transport spending. But in Queensland, tenders in the first half of 2025 have been very limited. To maintain momentum, projects need to be brought forward.
Sectoral demand is also reshaping the market. Transport infrastructure is tapering off in NSW and Victoria, while growth is emerging in water, sewerage, energy, data centres, and social and affordable housing. But this new demand isn’t yet strong enough to offset the decline in transport, creating challenging conditions overall.
The findings can’t be ignored. We have opportunities to grow, but without genuine collaboration, a steady pipeline and smarter risk-sharing, Australia’s construction industry risks falling short of delivering the infrastructure the nation needs.
