Regional Survey of Industry Conditions released

Published: 15 February 2012

Master Builders has today released regional snapshots as part of the quarterly Survey of Industry Conditions for December 2011.

Regional reports are available for Brisbane, Gold Coast, Darling Downs & South West Queensland, Sunshine Coast, Burnett Wide Bay, Central Queensland, Mackay & Whitsunday, North Queensland and Far North Queensland. Regional Managers are available in all major centres for media comment and interview.

Key points from each report include:

Brisbane

Building activity in Brisbane is expected to remain fairly subdued over the coming quarter.
Despite a general improvement in business profitability and turnover, the proportion of businesses reporting weaker turnover and/or profitability remained at worryingly high levels.
Employment levels improved during the quarter, with most businesses reporting stable or increasing workforces and the majority forecasting no further staff cut backs over the next three months.
The subdued level of demand was the number one constraint on business growth, followed by the availability and cost of finance and the planning approval process.

Gold Coast

Building activity on the Gold Coast is expected to remain fairly subdued over the coming quarter, with results amongst the weakest of the regional centres.
Gold Coast results for turnover and profitability are amongst the weakest in the state, highlighting that local trading conditions remained much tougher than in other areas.
Employment levels fell during the quarter; however the outlook for employment improved, with the majority of businesses forecasting no further staff cut backs over the next three months.
Infrastructure charges were the number one constraint on business growth, followed by the subdued level of demand and the cost and availability of finance.

Darling Downs & South West Queensland

Building activity in the Darling Downs & South West Queensland region is expected to improve somewhat over the coming quarter, particularly given the region’s exposure to the mining boom, residential and commercial sectors are expected to move into positive territory in the coming quarter.
The region is performing better than most areas of the state, with profitability and turnover improving and returning to satisfactory levels.
Employment levels improved during the quarter, with most businesses reporting stable or increasing workforces and the majority of businesses forecasting no further staffing cut backs over the next three months.
The availability and cost of finance was the most critical constraint on business growth, followed by land availability and weather conditions.

Sunshine Coast

Building activity on the Sunshine Coast is expected to remain fairly subdued over the coming quarter, with results amongst the weakest of the regional centres.
Profitability and turnover both improved during the quarter, but remained at less than satisfactory levels; however, both benchmarks are expected to strengthen in the short term.
Employment levels fell, with a substantial proportion of businesses reporting a fall in the size of their workforce, although the majority of businesses have forecast no further staffing cut backs over the next three months.
The subdued level of demand was once again the number one constraint on business growth, followed by planning approval processes and finance availability and cost.

Burnett Wide Bay

Building activity in the Burnett Wide Bay region is expected to remain fairly subdued over the coming quarter.
While profitability and turnover improved, the benchmarks remained less than satisfactory; however, both are forecast to improve in the short term.
Employment levels improved during the quarter, with most businesses reporting stable or increasing workforces and forecasting no further staff cut backs over the next three months.
The subdued level of demand was once again the number one constraint on business growth, followed by finance availability and cost and interest rates.

Central Queensland

Building activity is expected to be relatively higher than in many other areas of the state.
Central Queensland was one of the strongest performing regions in the state, with business profitability and turnover both improving and entering satisfactory territory for the first time in a number of years.
Employment levels improved with most businesses reporting stable or increasing workforces and forecasting no further staff cut backs over the next three months.
Planning approval processes were the number one constraint on business growth, followed by labour costs and finance availability and cost.

Mackay & Whitsunday

Building activity is expected to be relatively higher than in many other areas of the state as a result of the mining boom.
While business profitability and turnover actually declined, Mackay & Whitsunday is one of only a few regions that recorded satisfactory levels in these benchmarks.
Employment levels weakened during the December quarter and are expected to fall further, although the majority of businesses are forecasting no further staff cut backs.
The availability and cost of finance was the most critical constraint on business growth, followed by land availability and weather conditions.

North Queensland

Building activity in North Queensland is expected to remain fairly subdued over the coming quarter, despite the commercial sector improving during the December quarter.
Business profitability and turnover improved during the December quarter, but remained at less than satisfactory levels.
Employment levels fell, with a substantial proportion of businesses reporting a reduction in the size of their workforce, although, most are forecasting no further staff cut backs over the next three months.
Infrastructure charges were the number one constraint on business growth, followed by the subdued level of demand and the cost and planning approval processes.

Far North Queensland

Building activity in Far North Queensland is expected to remain fairly subdued over the coming quarter, with results amongst the weakest of the regional centres.
Business profitability and turnover fell during the quarter, remaining below satisfactory levels and making Far North Queensland amongst the weakest regions in the state.
Employment levels fell during December, with a substantial proportion reporting a reduction in the size of their workforce; however, the outlook for employment improved, with the majority forecasting no further staff cut backs over the next three months.
The subdued level of demand was once again the number one constraint on business growth, followed by finance availability and cost and interest rates.

Master Builders Survey of Industry Conditions reports provide information and analysis on industry expectations and business performance based on a survey of Master Builders members across Queensland.

Media enquiries:
Julie Russell, Manager – Corporate Affairs via email or phone (07) 3225 6436 or 0414 083 191.