The September release of the Davis Langdon Sentiment Survey has seen the key sentiment indicator drop considerably from the April results, now down to -11 percent.
According to Davis Langdon, this reflects a growing and ongoing uncertainty that has marked the industry through much of 2011. Optimism has declined in most states, which is reflected in the key indicator, the Net Workload Expectation, which moved further into negative, down 5 points from the past quarter.
Participants in the Davis Langdon survey are anticipating a further drop in government investment, but are also unsure of how much new business will come from the private sector. Other challenges faced by the industry include financing and planning hurdles – particularly in NSW and Queensland.
Looking ahead, the industry sees opportunities in meeting our growing infrastructure requirements and profiting from the flow-on effects of resources industry investments. However, businesses also have to contend with the dual forces of rising labour costs and increasingly competitive tendering to secure work.
Click here to view the full report from Davis Langdon.