A new study by the University of Adelaide suggests the Australian economy could face an unprecedented “peak” of demand for roofing.
“It’s a great time for Australia’s economy,” Associate Professor Mark Williams said.
“We have been on the brink of another global financial crisis, but we’re now well on our way to a financial recovery.”
If we’re going to get through this peak, it’s going to have to be a boom.
“The findings from the study, which looked at the effects of the global economic downturn, are published in the journal The Australian Journal of Economic Analysis.
They suggest that the peak in demand for Australia roofing could come within a decade.”
That would be quite significant, as a peak of demand has been predicted over a long period of time,” Associate Associate Professor Williams said, noting the Australian Government has warned that there is a 75 per cent chance of a global recession in the next few years.”
This could be a major, major shock.
“In the study’s authors’ view, peak demand could take several forms.
Some might come from people seeking a better roof.
Some may come from older Australians who want to move into the newer dwellings in the region.
Some could come from construction workers who want a better chance of securing a job.”
The big thing is the big construction companies are going to start looking for roofers to do that work,” Associate professor Williams said of the sector.”
And that could potentially have a major impact on our economy.
“He said there was a huge amount of research that suggests Australians were buying up their homes and that it was time for them to start paying more attention to what was going on in the real estate market.”
You’ve got to look at what’s going on around the country, what’s happening in terms of the prices and the supply and the demand, and what you’re seeing is that there’s an increase in demand, that demand is rising,” Associate member of the university’s Department of Economics, Prof David Wilson, said.
But he cautioned the study was not looking at the full impact of the economic downturn.””
You can see there’s a very big gap between what people are actually paying for and what the market is charging,” he said.
But he cautioned the study was not looking at the full impact of the economic downturn.
“For the moment, there’s not a lot that we can do about it,” Associate Member of the University’s Department Prof David Thompson said.
Mr Thompson said he was surprised that there was such a big demand for a roof, especially after the study found that people in New South Wales were not being hit particularly hard.
“But we’re just getting started,” he added.
The study also looked at whether there was an impact on the growth of the construction industry, particularly in the areas of housing and transport.
It found that demand for construction workers was down 2 per, 1 per, and 1 per cent respectively.
However, it noted that demand in transport, as well as construction and health care sectors, was also falling.
“There’s a lot of talk in the construction sector that they’re doing better than before the recession,” Associate associate member of university’s Prof David Jones said.
Mr Jones said there were concerns about the impact of rising housing prices on the construction and hospitality sectors.
“Certainly we have seen a lot more people moving into housing in the last few years,” he explained.
“They’re buying a house, they’re renting and that’s going into the economy, but what that does is it increases the cost of building.”
He warned that if the global financial system falters, that could put pressure on Australia’s housing market.
However, he said there could be an opportunity for Australian roofers.
“I think if we can get our supply back up and we can be flexible about what we do, it will be great,” he agreed.
“What we’re doing right now is just putting in the right kind of roof.
I think we’ll be able to do a great job with it.”
Topics:housing-industry,housing-standard,housing,business-economics-and-finance,australiaFirst posted October 20, 2017 13:56:46Contact Karen Karr Contact Sarah BraidContact Sarah Green