Exchange Sunshine Coast 2014
A refresher on CSQ...
What does CSQ do? We: promote careers in the building and construction industry invest in skills and training grow the number of skilled workers build industry capacity to meet industry demand We are here for industry
What does CSQ do? CSQ wants to know: What are the evolving needs of our industry? What does the appropriately skilled workforce look like? We will: share information, data, research and insights establish strategic partnerships to engage with and inform, influence and assist our industry
Activity and training overview.. CSQ Industry Update October 2014 5
Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Residential and Commercial Construction Activity Total residential and commercial construction work is on the rise $6b Total value of building work done by sector, Queensland 2000-2014 $5b $4b $3b $2b $1b $0b Residential Commercial Total Building Source: ABS. 8752.0 Mar 2014, Seasonally Adjusted CSQ Industry Update October 2014 6
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Engineering Construction Activity Engineering construction activity has picked up $14b Total value of engineering construction work done by subsector, Queensland 2009-2014 $12b $10b $8b $6b $4b $2b $0b Roads Bridges, railways, harbours Electricity Water Telecommunications Recreation Heavy industry (incl. mining) Source: ABS. 8762.0 Jun 2014, Original CSQ Industry Update October 2014 7
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Engineering Construction Activity And the amount of work in the pipeline is declining... $70b Total value of engineering construction work yet to be done by subsector, Queensland 2009-2014 $60b $50b $40b $30b Reduced investment in new assets $20b $10b $0b Roads Bridges, railways, harbours Electricity Water Telecommunications Recreation Heavy industry (incl. mining) Source: ABS. 8762.0 Jun 2014, Original CSQ Industry Update October 2014 8
Hotspot: Queensland 9
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Residential Building Approvals by Region Residential values have increased, boosted by strong growth in detached houses and higher density residential building Total value of residential building approvals ($millions), CSQ regions 2012-2014 2012-13 2013-14 Growth (%) Gold Coast 752.8 1,255.3 66.8 Brisbane North 1,776.3 2,833.1 59.5 Sunshine Coast 540.8 808.1 49.4 Brisbane South 1,597.0 2,246.4 40.7 Far North 270.0 342.7 26.9 Wide Bay 310.9 382.9 23.1 South West 448.4 550.1 22.7 Ipswich 463.6 532.6 14.9 Northern 509.7 483.2-5.2 Mackay 810.3 477.4-41.1 Central 954.3 495.5-48.1 Queensland 8,434.1 10,407.3 23.4 CSQ Industry Update October 2014 Source: ABS. 8731.0 Jul 2013, Original. Significant growth across a number of regions 11
Commercial Building Approvals by Region Commercial activity has declined sharply, falling from a peak created by approval of the SCUH project Total value of commercial building approvals ($millions), CSQ regions 2012-2014 2012-13 2013-14 Growth (%) Gold Coast 632.0 1,266.7 100.4 Far North 143.1 224.2 56.7 Ipswich 284.7 384.4 35.0 South West 340.6 335.3-1.6 Wide Bay 249.2 225.3-9.6 Brisbane North 2,244.3 1,631.4-27.3 Northern 492.6 294.0-40.3 Mackay 481.2 282.5-41.3 Brisbane South 1,509.6 968.4-35.9 Sunshine Coast 1,201.6 305.9-74.5 Central 759.0 162.1-78.6 Queensland 8,338.0 6,080.2-27.1 Source: ABS. 8731.0 Jul 2014, Original. Retail expansion projects CSQ Industry Update October 2014 12
Sunshine Coast: Building Activity by Type The previous peak is evident in the breakdown by type, as is strong residential subsector growth... $2.0b Annual building approval values by type, Sunshine Coast 2007-2014 $1.5b $1.0b $0.5b $0.0b 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Commercial Industrial Social/Institutional New houses New other residential Alterations and additions Source: ABS. 8731.0 Jul 2014, Original. CSQ Industry Update October 2014 13
Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Sunshine Coast: Building Activity by Month Dwelling approvals increased 75.4% and total approval values fell 8.0% compared to the same time last year 1,200 Building approval value and counts, Sunshine Coast 2012-2014 1,000 800 Sunshine Coast University Hospital 600 400 200 0 No. dwellings Value of building ($m) Source: ABS. 8731.0 Jul 2014, Original. CSQ Industry Update October 2014 14
Construction Industry Sentiment Building Industry Outlook Sunshine Coast 70.3 Sentiment remains very positive and has improved since the previous quarter... Gold Coast 66.7 Brisbane 63.1 Darling Downs and South West Queensland 61.0 Far North Queensland 60.7 Burnett Wide Bay 52.5 North Queensland 52.1 Central Queensland 50.0 Mackay 48.9 Queensland 60.7 *QMBA indexes range between 0 and 100. An index level of 50 indicates satisfactory conditions. Higher results indicate relatively more positive conditions while index levels of less than 50 indicate less satisfactory conditions. Source: QMBA. Survey of Industry Conditions, Jun 2014. CSQ Industry Update October 2014 15
Feb qtr 07 May qtr 07 Aug qtr 07 Nov qtr 07 Feb qtr 08 May qtr 08 Aug qtr 08 Nov qtr 08 Feb qtr 09 May qtr 09 Aug qtr 09 Nov qtr 09 Feb qtr 10 May qtr 10 Aug qtr 10 Nov qtr 10 Feb qtr 11 May qtr 11 Aug qtr 11 Nov qtr 11 Feb qtr 12 May qtr 12 Aug qtr 12 Nov qtr 12 Feb qtr 13 May qtr 13 Aug qtr 13 Nov qtr 13 Feb qtr 14 May qtr 14 Aug qtr 14 Queensland: Construction Industry Employment Overall industry employment has been relatively steady 250,000 245,000 240,000 235,000 230,000 225,000 220,000 215,000 210,000 205,000 200,000 195,000 Total construction industry employment, Queensland 2007-2014 228,800 persons at Aug Q 2014 Source: ABS. 6291.0.55.003 Aug 2014, Yearly moving average. CSQ Industry Update October 2014 16
Feb qtr 07 May qtr 07 Aug qtr 07 Nov qtr 07 Feb qtr 08 May qtr 08 Aug qtr 08 Nov qtr 08 Feb qtr 09 May qtr 09 Aug qtr 09 Nov qtr 09 Feb qtr 10 May qtr 10 Aug qtr 10 Nov qtr 10 Feb qtr 11 May qtr 11 Aug qtr 11 Nov qtr 11 Feb qtr 12 May qtr 12 Aug qtr 12 Nov qtr 12 Feb qtr 13 May qtr 13 Aug qtr 13 Nov qtr 13 Feb qtr 14 May qtr 14 Aug qtr 14 Sunshine Coast: Construction Industry Employment with local industry employment up 13.7% from last year 25,000 20,000 Total construction industry employment, Sunshine Coast 2007-2014 17,600 persons at Aug Q 2014 15,000 10,000 5,000 0 Source: ABS. 6291.0.55.003 Aug 2014, Yearly moving average. CSQ Industry Update October 2014 17
Queensland: Training 18
Queensland: Training 19
Queensland: Training 20
2014-15 Annual Training Plan overview 21
ATP 2014-15 - The investment $45M for investment in 2014-15 Decrease on the 2013-14 budget $70 $60 $50 $40 $30 $20 $10 $ M $0 2010-11 2011-12 2012-13 2013-14 2014-15
The guiding policy principles Industry-led Evidence-based Co-invested Contestable Performance and employment outcomes based Leveraged investment and service
Resulting Programs and Delivery Priorities No changes to our list of ATP programs BUT a clearer focus on the policy principles Focus is still on attracting new entrants, and developing and retaining existing workers
CSQ s Key Programs Attract Develop Retain Try A Trade D2C and D2CC TradeStart Gateway schools Pre-Apprenticeship Employment Incentives Skills assessment and gap training Short courses Higher level skills General and civil construction Student contribution fees Apprentice Recommencement Incentive Industry Coordinator Support
Our investment to date 2014-15 procurement process now finalised Contracts have been allocated to RTOs across Queensland To find a course and RTO in your location use our course selector at www.csq.org.au or call our Customer Support Centre on 1800 798 488
Construction Futures Major Projects Pilot Projects Diversity partner with major contractors on key projects case management approach major contractors and sub-contractors trial skills responses to support new & emerging technologies, work methodologies etc industry-wide application not existing programs entry, participation and retention of workers from a broad range of backgrounds complements attract, develop & retain programs
Our research agenda Our research agenda for 2014-15 Building Information Modelling (BIM) Off-site construction (Pre-fabrication) VET Quality Evolving nature of apprenticeships & traineeships The role of incentives School to industry pathways
Don t forget the CSQ Excellence Awards 2014 Friday 5 December 2014 at the Brisbane Convention & Exhibition from 6:30pm
CSQ Industry Update October 2014 30