Performance of Construction Index down at 2005 levels

PCI numbers are well down for the month of April by about 36%, showing that the construction sector has fallen to its lowest level since 2005 (seasonally adjusted)‼️

PCI = Performance of Construction Index (produced by Ai Group and HIA)

a close up of a graph

Link to article – https://www.aigroup.com.au/resourcecentre/economics/performance-indicators/PCI/

Without a significant uptick in Government or large enterprise appetite to fund infrastructure projects 🏗, I can’t imagine the sector growing before the next round of QLD QBCC net tangible asset (NTA) minimum financial requirements (MFR) ⚖️ are due in December 2020.

This will be a big test of QBCC policy, and whether some industry players will be deemed too big to fail/lose their licence.

Don’t forget, MFR is not just an annual test.

There are numerous other reasons for when you must report your MFR, like:

* NTA falls by more than between 20-30%

* where maximum revenue requires adjustment because your NTA has fallen

A sensible solution needs to be found, otherwise we might lose a generation of small business builders to a licencing regime that only works in the good times.

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