With nearly 300,000 people building the future and contributing over $50 billion to the state's economy, Victoria's construction industry is a powerhouse of growth, opportunity, and transformation.
Key Takeaways
- In 2022, the Victoria construction industry employed 278,400 full-time equivalent workers, accounting for 8.9% of the state's total workforce.
- As of June 2023, there were 45,200 construction manager positions in Victoria, with a 4.2% year-on-year growth.
- Women represented 13.4% of the Victoria construction workforce in 2022, up from 11.8% in 2019.
- Victoria's construction industry contributed $52.4 billion to state GDP in 2022-23, representing 9.2% of total GSP.
- Total value of construction work done in Victoria reached $78.3 billion in 2022-23.
- Residential construction accounted for 42% or $32.9 billion of Victoria's construction output in 2022.
- New dwelling approvals in Victoria reached 52,400 in 2022-23.
- Total floor area of non-residential buildings commenced in Victoria: 2.8 million sqm in 2022.
- Number of engineering construction projects over $10 million in Victoria: 156 in 2022.
- Total lost time injury frequency rate (LTIFR) in Victoria construction was 1.2 per million hours in 2022.
- 1,450 serious injuries reported in Victoria construction sites in 2022.
- Fall from height incidents accounted for 32% of construction fatalities in Victoria over 2018-2022.
- Victoria construction output forecasted to grow 4.5% annually to 2027.
- Residential building approvals expected to reach 55,000 in Victoria 2024.
- Labor shortages projected to impact 25% of Victoria projects by 2025.
Victoria's construction industry is large, growing, and faces persistent challenges with skills and safety.
Construction Output and Projects
- New dwelling approvals in Victoria reached 52,400 in 2022-23.
- Total floor area of non-residential buildings commenced in Victoria: 2.8 million sqm in 2022.
- Number of engineering construction projects over $10 million in Victoria: 156 in 2022.
- Residential renovations valued at $12.4 billion in Victoria in 2022.
- 1,240 multi-unit residential developments started in Victoria in 2022-23.
- Road and bridge projects in Victoria totaled 420 km constructed in 2022.
- Hospital construction projects in Victoria: 8 major builds valued at $4.1 billion in 2022.
- Average size of new detached houses in Victoria: 220 sqm in 2022.
- Retail building completions in Victoria: 450,000 sqm in 2022-23.
- Pipeline of approved residential projects in Victoria: 180,000 dwellings as of 2023.
- Rail infrastructure projects in Victoria: 45 km of new track laid in 2022.
- Office building commencements in Melbourne CBD: 120,000 sqm in 2022.
- Water infrastructure projects in Victoria: 12 dams and pipelines totaling $2.3 billion.
- School building projects completed: 150 across Victoria valued at $850 million in 2022.
- Industrial warehouse developments: 750,000 sqm in Victoria in 2022.
- Heritage restoration projects in Victoria: 320 sites with $210 million investment in 2022.
- Green building certifications (Green Star) awarded: 45 projects in Victoria 2022.
- Modular construction projects: 15% of total residential starts or 7,860 units in Victoria 2022.
- Aged care facilities constructed: 22 new facilities with 2,500 beds in Victoria 2022.
- Stadium and sports venue projects: 5 major upgrades costing $1.2 billion in 2022.
- Sewerage and drainage projects: 280 km of new pipes in Victoria 2022.
- University campus expansions: 180,000 sqm added across Victoria unis in 2022.
- Data center constructions: 3 facilities totaling 50MW capacity in Victoria 2022.
- Affordable housing projects: 4,200 units delivered in Victoria 2022-23.
- Wind farm constructions: 250MW capacity added in Victoria 2022.
Construction Output and Projects Interpretation
Victoria's construction industry has been frantically working from top to bottom, simultaneously adding homes for thousands, offices for our thoughts, warehouses for our stuff, roads for our commutes, and stadiums for our cheers, all while trying not to break the pipes.
Economic Contribution
- Victoria's construction industry contributed $52.4 billion to state GDP in 2022-23, representing 9.2% of total GSP.
- Total value of construction work done in Victoria reached $78.3 billion in 2022-23.
- Residential construction accounted for 42% or $32.9 billion of Victoria's construction output in 2022.
- Non-residential building construction in Victoria was valued at $21.5 billion in 2022-23.
- Engineering construction contributed $24.1 billion to Victoria's economy in 2022-23.
- Construction multiplier effect generated $1.85 in downstream activity per $1 of direct output in Victoria.
- Average profit margin for Victoria construction firms was 4.8% in 2022.
- Government construction spending in Victoria totaled $15.2 billion in 2022-23.
- Private sector investment in Victoria construction was $48.7 billion in 2022.
- Construction exports from Victoria (prefab components) valued $2.1 billion in 2022.
- Tax revenue from Victoria construction industry was $8.9 billion in 2022-23.
- 1,250 new construction businesses started in Victoria in 2022, a 5.2% increase.
- Average firm revenue in Victoria construction was $4.2 million in 2022.
- Cost inflation in Victoria construction materials was 12.4% in 2022.
- Wage share of GDP in Victoria construction rose to 32.1% in 2022.
- Indirect employment supported by construction in Victoria: 180,000 jobs in 2022.
- Construction debt levels for Victoria firms averaged $1.8 million per business in 2022.
- Return on assets for Victoria construction companies was 6.7% in 2022.
- Value added by construction to Victoria manufacturing supply chain: $6.3 billion in 2022.
- Construction R&D spending in Victoria totaled $450 million in 2022.
- Bankruptcy rate among Victoria construction SMEs was 2.1% in 2022.
- Insurance premiums for Victoria construction averaged $125,000 per firm in 2022.
- Foreign investment in Victoria construction projects: $3.2 billion in 2022.
- Energy cost share of total expenses in Victoria construction: 7.8% in 2022.
- Philanthropic contributions from Victoria construction sector: $85 million in 2022.
- Market concentration: top 10 firms held 28% of Victoria construction revenue in 2022.
Economic Contribution Interpretation
Victoria's construction industry is a remarkably productive yet tight-fisted economic engine, building nearly a tenth of the state's wealth with a surprisingly slim 4.8% average profit margin while managing to generate almost two dollars in wider economic activity for every dollar it spends.
Employment and Labor
- In 2022, the Victoria construction industry employed 278,400 full-time equivalent workers, accounting for 8.9% of the state's total workforce.
- As of June 2023, there were 45,200 construction manager positions in Victoria, with a 4.2% year-on-year growth.
- Women represented 13.4% of the Victoria construction workforce in 2022, up from 11.8% in 2019.
- Apprentices and trainees in Victoria's construction sector numbered 28,500 in 2023, comprising 10.2% of total employees.
- Average weekly earnings for construction workers in Victoria reached $2,150 in November 2022, 25% above the state average.
- Victoria had 12,300 job vacancies in construction as of February 2023, a 35% increase from 2022.
- Indigenous workers made up 2.1% of Victoria's construction employment in 2022, with targeted programs boosting participation by 15%.
- The sector experienced a 6.8% labor turnover rate in Victoria construction firms in 2022.
- 67% of Victoria construction workers held formal qualifications (Certificate III or higher) in 2023.
- Youth employment (15-24 years) in Victoria construction stood at 18,500 in 2022, or 6.6% of the workforce.
- Migrant workers comprised 32.4% of Victoria's construction labor force in 2022.
- Overtime hours averaged 4.2 hours per week for Victoria construction workers in 2022.
- Unemployment rate in Victoria construction was 3.1% in 2023, below the state average of 3.9%.
- 24,100 self-employed contractors operated in Victoria construction in 2022.
- Labor productivity in Victoria construction grew by 2.3% in 2022 to $112,400 per worker.
- 41% of Victoria construction firms reported skill shortages in carpentry in 2023.
- Female apprentices in construction increased by 22% to 4,200 in Victoria in 2023.
- Average age of construction workers in Victoria was 41.2 years in 2022.
- 15,600 workers in Victoria construction were engaged in residential building in 2022.
- Union membership in Victoria construction stood at 28% in 2022.
- 7,200 new workers entered Victoria construction via training programs in 2022.
- Part-time workers accounted for 12.5% of Victoria construction employment in 2023.
- 52% of Victoria construction managers had 10+ years experience in 2022.
- Labor costs as a share of total construction costs in Victoria were 38.4% in 2022.
- 9,400 electricians were employed in Victoria construction in 2023.
- Remote work adoption in Victoria construction admin roles was 8% in 2022.
- 33,200 laborers were in Victoria construction workforce in 2022.
- Training expenditure per employee in Victoria construction averaged $1,250 in 2022.
- 6.2% of Victoria construction workers were over 55 years old in 2023.
- Casual employment rate in Victoria construction was 29.7% in 2022.
Employment and Labor Interpretation
Victoria's construction sector is a high-earning, high-demand powerhouse that's desperately trying to build more than just infrastructure—it's racing to build a bigger, better, and more diverse workforce from the ground up, one apprentice, woman, and skilled migrant at a time.
Safety and Compliance
- Total lost time injury frequency rate (LTIFR) in Victoria construction was 1.2 per million hours in 2022.
- 1,450 serious injuries reported in Victoria construction sites in 2022.
- Fall from height incidents accounted for 32% of construction fatalities in Victoria over 2018-2022.
- Compliance rate with scaffold regulations: 87% of audited sites in Victoria 2022.
- Number of construction fatalities in Victoria: 14 in 2022.
- High-risk work licenses issued: 56,200 for Victoria construction workers in 2022.
- Prohibition notices issued to construction sites: 1,820 in Victoria 2022.
- Safety training hours per worker averaged 12.4 hours annually in Victoria construction 2022.
- Musculoskeletal disorder claims: 45% of total construction injuries in Victoria 2022.
- Improvement notices served: 4,200 on Victoria construction firms in 2022.
- Crane-related incidents: 56 reported in Victoria construction 2022.
- Asbestos removal compliance violations: 320 cases in Victoria 2022.
- Mental health claims in construction rose 18% to 1,200 in Victoria 2022.
- PPE non-compliance rate: 14% of sites inspected in Victoria 2022.
- Excavation collapse incidents: 23 in Victoria construction 2022.
- Safety certification rate among Victoria contractors: 92% in 2022.
- Electrical safety breaches: 890 on Victoria sites in 2022.
- Fatigue-related incidents: 210 reported in Victoria construction 2022.
- Silica dust exposure violations: 450 notices in Victoria 2022.
- Traffic management non-compliance: 1,100 cases in Victoria construction zones 2022.
- Heat stress incidents: 180 during summer in Victoria construction 2022.
- Manual handling injuries: 2,340 claims in Victoria construction 2022.
- Fire safety compliance audits passed: 78% of Victoria sites in 2022.
- Drug and alcohol testing positive rate: 3.2% in Victoria construction 2022.
- Confined space incidents: 34 in Victoria construction 2022.
Safety and Compliance Interpretation
While Victoria's construction industry boasts a high certification rate, the sobering litany of 14 fatalities, 1,450 serious injuries, and pervasive non-compliance from scaffolds to silica dust reveals a sector still building its safety culture on shaky ground.
Trends and Forecasts
- Victoria construction output forecasted to grow 4.5% annually to 2027.
- Residential building approvals expected to reach 55,000 in Victoria 2024.
- Labor shortages projected to impact 25% of Victoria projects by 2025.
- Green construction market share to rise to 35% in Victoria by 2026.
- Infrastructure pipeline valued at $125 billion over next 10 years in Victoria.
- Prefab and modular construction to comprise 20% of output by 2025 in Victoria.
- Cost pressures expected to add 6% to project budgets in Victoria 2024.
- Digital adoption (BIM) forecasted at 65% of large projects in Victoria by 2025.
- Net zero buildings to double to 150 certifications annually in Victoria by 2027.
- Employment growth projected at 2.8% pa to 320,000 workers in Victoria by 2028.
- Mega projects (over $1bn) to average 12 per year in Victoria 2024-2028.
- Material price growth to moderate to 3.5% in Victoria construction 2024.
- Regional construction output to grow 5.2% pa vs 3.8% metro in Victoria.
- Automation to reduce on-site labor by 15% in Victoria by 2030.
- Affordable housing starts forecasted at 10,000 pa in Victoria by 2025.
- Renewable energy projects to add $8bn to Victoria construction by 2027.
- Supply chain disruptions risk: high for 40% of Victoria firms in 2024.
- Women in workforce projected to reach 18% by 2027 in Victoria construction.
- Project delays due to approvals: average 6 months increasing to 8 by 2025.
- Off-site manufacturing capacity to expand 25% pa in Victoria to 2026.
- GDP contribution forecasted at 10.1% by 2027 for Victoria construction.
- Skilled migration to fill 15,000 construction roles annually in Victoria.
- Electrification projects (EV infra) valued at $1.5bn by 2025 in Victoria.
- BIM mandate for all govt projects from 2024 in Victoria.
- Construction insolvency rate to fall to 1.5% by 2025 in Victoria.
Trends and Forecasts Interpretation
Victoria's construction future is a high-wire act of impressive growth, with a green and digital revolution promising to build us into a prosperous future, provided we can find the workers, manage the costs, and untangle the approvals holding up the tightrope.
Sources & References
- Reference 1ABSabs.gov.auVisit source
- Reference 2JOBSANDSKILLSjobsandskills.gov.auVisit source
- Reference 3MASTERBUILDERSmasterbuilders.com.auVisit source
- Reference 4VICvic.gov.auVisit source
- Reference 5INDIGENOUSindigenous.gov.auVisit source
- Reference 6AIGROUPaigroup.com.auVisit source
- Reference 7NCVERncver.edu.auVisit source
- Reference 8SKILLSskills.vic.gov.auVisit source
- Reference 9SEEKseek.com.auVisit source
- Reference 10HOUSINGECONOMYMONITORhousingeconomymonitor.com.auVisit source
- Reference 11DTFdtf.vic.gov.auVisit source
- Reference 12IBISWORLDibisworld.com.auVisit source
- Reference 13BUDGETbudget.vic.gov.auVisit source
- Reference 14AUSTRADEaustrade.gov.auVisit source
- Reference 15ATOato.gov.auVisit source
- Reference 16RBArba.gov.auVisit source
- Reference 17APRAapra.gov.auVisit source
- Reference 18AFSAafsa.gov.auVisit source
- Reference 19ICAREicare.com.auVisit source
- Reference 20FIRBfirb.gov.auVisit source
- Reference 21AERaer.gov.auVisit source
- Reference 22GIVINGAUSTRALIAgivingaustralia.gov.auVisit source
- Reference 23ACCCaccc.gov.auVisit source
- Reference 24HIAhia.com.auVisit source
- Reference 25HEALTHhealth.vic.gov.auVisit source
- Reference 26PROPERTYCOUNCILpropertycouncil.com.auVisit source
- Reference 27DELWPdelwp.vic.gov.auVisit source
- Reference 28PTVptv.vic.gov.auVisit source
- Reference 29JLLjll.com.auVisit source
- Reference 30WATERwater.vic.gov.auVisit source
- Reference 31EDUCATIONeducation.vic.gov.auVisit source
- Reference 32CBREcbre.com.auVisit source
- Reference 33HERITAGEheritage.vic.gov.auVisit source
- Reference 34NEWnew.gbca.org.auVisit source
- Reference 35MODULARmodular.org.auVisit source
- Reference 36HEALTHhealth.gov.auVisit source
- Reference 37SPORTsport.vic.gov.auVisit source
- Reference 38EPAepa.vic.gov.auVisit source
- Reference 39UNIVERSITIESAUSTRALIAuniversitiesaustralia.edu.auVisit source
- Reference 40DATACENTERMAPdatacentermap.comVisit source
- Reference 41HOMEShomes.vic.gov.auVisit source
- Reference 42AEMOaemo.com.auVisit source
- Reference 43WORKSAFEworksafe.vic.gov.auVisit source
- Reference 44SAFEWORKAUSTRALIAsafeworkaustralia.gov.auVisit source
- Reference 45ENERGYenergy.vic.gov.auVisit source
- Reference 46VICROADSvicroads.vic.gov.auVisit source
- Reference 47CFAcfa.vic.gov.auVisit source
- Reference 48OXFORDECONOMICSoxfordeconomics.com.auVisit source
- Reference 49GBCAgbca.org.auVisit source
- Reference 50INFRASTRUCTUREVICTORIAinfrastructurevictoria.com.auVisit source
- Reference 51WWW TURNERANDTOWNSENDwww Turnerandtownsend.comVisit source
- Reference 52NATSPECnatspec.org.auVisit source
- Reference 53CLIMATEWORKSclimateworks.org.auVisit source
- Reference 54REGIONALAUSTRALIAregionalaustralia.org.auVisit source
- Reference 55MCKINSEYmckinsey.comVisit source
- Reference 56CONSULTAUSTRALIAconsultAustralia.com.auVisit source
- Reference 57HOMEAFFAIRShomeaffairs.gov.auVisit source