View the survey report here.

The results of the Victorian Building & Construction Confidence Report are in, which is used by Master Builders as a key tool for lobbying governments and raising your concerns in the media.

The report evaluates responses from Master Builders’ members and scores each question on a scale between 0 and 100. Scores of 50 are the neutral mark, so anything above that points to signs of improved conditions.

So, what does the latest report say about our industry?


1. There is growing confidence in our economy




Builders and construction companies are feeling more positive about our economic future, with a surge in confidence being recorded following last September’s Federal Election. The Future Economic Expectations Index in Victoria reached 56.1 points, up 12.9 points in just three months. The index is now at its highest point in four years.


2. You expect to see the industry perform better over the next six months




There is also renewed enthusiasm about the building and construction industry’s direction, with our Industry Expectations Index moving into positive territory for the first time since early 2011. At 56.4 points, the index is at its highest point since mid-2010 as builders believing more work will become available throughout the sector in 2014. It’s also higher than the expectations builders elsewhere across the country have about their own local industry’s prospects.


3. Builders are feeling much better about their own business prospects




Builders are also saying they feel much more secure about where their own business is heading in the next six months. The Business Expectations Index has also climbed up to 59.1 points as the majority of builders believe their own activity levels will rise in the near future. Builders are now feeling more positive about their future activity than we’ve seen since late 2011, perhaps as a sign of record low interest rates and a boost in some sections of the residential building market.


4. While the future looks bright, current work volume remains low




Despite feeling more optimistic about the future, only 42.2 per cent of Victorian members are reporting to have six months or more worth of work on their books. This is lower than it was three months earlier and is much lower than what companies across other parts of the country are reporting (the national rate is 61.2 per cent). 


5. Profits also remain low



Activity in many parts of the building and construction industry have declined in recent years and this is being reflected in profit margins. At 42.0 points, members are reporting diminishing profits and our Current Profitability Index remains well below the neutral mark, beneath 5-year averages and well behind profits recorded by building and construction companies in other states.


So what is being done about it?

There are a range of policies Master Builders is arguing for, including an inquiry into housing affordability to help encourage more Victorians to buy a home and the establishment of a new infrastructure advisory body to identify new, innovative funding arrangements to help get more infrastructure projects off the ground.

The results of this survey are being circulated to Victorian MPs and will assist Master Builders to lobby for reforms that will strengthen our industry and drive investment into building projects.

More information is available in the latest Victorian Building & Construction Confidence Report, including the impact of industrial relations, the employment intentions of member companies and a list of the most difficult to find tradespeople and staff.

Keep your eye out for the next survey, which will hit members’ inboxes in coming weeks.

Have you got a question or comment about the latest survey results? If so, you can make a post on this page and Master Builders will respond to you.