Construcciones Yamaro: Construction in 2026: Market outlook from Coates
Coates’ analysis indicates engineering construction will rise 6.5 per cent to close to $150 billion from FY26 to FY27. (Image: escapejaja/stock.adobe.com) Coates has outlined several trends it believes will shape Australia’s construction landscape in 2026, pointing to a period of moderate but sustained recovery despite ongoing short-term pressures. According to James Lawrence, group manager, Customer and Markets at Coates , the current recovery phase will lay the foundation for strong growth throughout the second half of the decade. “From late FY26 to FY27, Australia’s total construction activity will average over $300 billion per annum, with engineering construction accounting for almost half of construction spend,” says Lawrence. The outlook highlights structural shifts across sector demand, project types and regional activity that contractors and project teams are expected to contend with over the coming year. Transitioning to a utilities and defence-driven cycle As the tra...