BDO Construction Survey

Construction companies across Australia are experiencing significant challenges, driven by inclement weather conditions impacting construction activity, labour shortages and ever-rising inflation. Across the 2021-2022 financial year, construction firms accounted for 26 per cent of all insolvencies across Australia, but as of December 2022 (Q2 FY23), this number has increased to approximately 30 per cent.

The BDO Construction Survey provides insights into the financial performance of the construction sector, using results obtained from our independently conducted survey.

BDO Construction Survey 2022

Our 2022 survey comprises of financial data from Australian construction companies in FY22, transposed with the results of our previous construction survey (conducted at the beginning of COVID-19’s spread in 2020). The results in our latest report highlight the significant changes that have occurred over this tumultuous period.

Key takeaways

  • 60 per cent of companies surveyed reported an increase in revenue of more than ten per cent, compared to the previous financial year
  • Net profit before income tax (NPBT) significantly declined across the majority of companies surveyed
  • The top business priority for most participants is to attract, recruit and retain employees
  • The top cause for staff attrition is remuneration
  • 79 per cent of respondents also noted that a five-day working week would help with their overall wellbeing.

Download the 2022 report

BDO Construction Survey 2020

When we gathered the data for this survey in February 2020, there was an undercurrent of uncertainty in the broader market, and the Australian bushfire devastation was at its peak. Yet, participants indicated that they were optimistic about their futures, which was reflected in their promising forecasts.

This was followed shortly and swiftly by the COVID-19 pandemic - an economic impact - that blind-sided all businesses and one that has forced many to adapt quickly to new work practices.

While the long-term effects are still unclear, day-by-day businesses are facing new ways of working and overcoming issues of decreased productivity.

Construction companies are harnessing the opportunity to work more efficiently, upgrade or fast-track their plans to uptake new technologies and find different ways of mobilising people. 

Overall, there is a lot of market uncertainty, and this will mean that in the medium term at least, there will be a slowing of projects and projects put on hold – particularly where residential is concerned. However, as the GFC in 2008 has proven, recovery for construction will be solid, as they operate in a fairly stable environment. It’s expected that responsiveness will see innovation flourish.

DOWNLOAD the 2020 report