BDO Construction Survey Report 2024
BDO Construction Survey Report 2024
A promising future for Australia’s construction sector
Our latest BDO Construction Survey Report 2024 dives deep into the metrics that matter most. This year, we uncover not just numbers, but the stories behind them—stories of resilience, innovation, and the evolving landscape of an industry shaped by both challenges and opportunities.
With rising revenues tempered by tough profit margins, and a workforce grappling with a skills shortage, the construction sector is navigating complex terrain. Our comprehensive analysis of tier one and tier two construction companies reveals crucial insights into financial performance, business priorities, technological advancements, and the pressing need for diversity, equity, and inclusion.
What you’ll discover
In this report, we distil the key trends and challenges defining the construction landscape today. From the ongoing impact of COVID-19 on legacy projects to the critical role of client relationships in ensuring future growth, the findings are designed to equip you with actionable insights. We also explore how technology and sustainability are an opportunity to reshape the way we build and operate.
Key takeaways
The 2024 BDO Construction Survey Report highlights key trends and challenges shaping Australia's construction industry.
- Revenue and profit margins
While revenue continues to rise, profit margins remain under pressure due to high costs, legacy projects, and ongoing subcontractor and supply chain issues. Companies need to assess their risk management strategies to safeguard productivity and profitability. - Legacy projects and client relationships
Construction companies are still navigating the effects of COVID-impacted legacy projects. However, there is a growing focus on return clients in FY24, making the cultivation of these relationships essential to maintaining a steady project pipeline and ensuring long-term growth. - Productivity challenges and technology
Productivity remains a significant issue, hindered by project delays, supply chain disruptions, and labour shortages. While innovations like modular building techniques and AI offer potential solutions, widespread adoption of these technologies has yet to occur. - Workforce and diversity
The industry faces a skilled labour shortage, and efforts to improve diversity, equity, and inclusion are still evolving. Attracting and retaining a diverse workforce, particularly in leadership positions, is crucial to the industry's future. - Sustainability and ESG reporting
New environmental, social, and governance (ESG) reporting requirements are on the horizon, with companies showing increased interest in ESG initiatives. However, accurate reporting remains a challenge, and ESG is not yet a major competitive factor in the construction sector, especially with the high costs of building projects.
Participant overview
A total of 12 construction organisations completed the survey in 2024, with 67 percent of participants reporting FY24 revenues of less than $750M.
Most of the construction companies surveyed operate in commercial, government and industrial subsectors, with a smaller number of companies operating in residential construction. Other subsectors included retail, childcare, aged care/senior living, data centres, and modular construction.