Saturday, May 30, 2009

The State of Play - The current job market for QSs in Australia and Abroad


This article was written for the 2nd issue of the AIQSs Building Economist for 2009


One of the duties of a recruitment consultant is to provide honest and relevant advice to candidates and clients. We are at the forefront of the job market on a daily basis talking to job seekers, clients of all kinds, industry bodies, forecasters, job boards and the media. We know what’s happening.


The main thrust of this article is to provide advice to the Australian QS whether they are at home or abroad as to the status of the job market in Australia or abroad – mainly the UK, UAE and Asia. It is focussed towards the employee rather than the employer – the latter will be the focus of the article in the next issue.


In Australia the usual employers of QSs, Estimators, CAs, Commercial Managers and Contracts Managers have seen their market chopped off at the knees. Confidence is low and credit is in short supply. Don’t get me started as to whether this state of affairs is a good thing or a bad thing, or whether we should have seen it coming, or when it will end, or if it will be the same next time around or ................. whatever – it’s here! Lots of consultants, developers and builders have recruitment freezes on and the others are being very cautious before taking on any new staff.
However it has become very evident that there is STILL a skill shortage in Australia for quality construction professionals. There was never enough to go round in the first place and not that many quality people have been let go. Employers are only letting good staff go if there is no other option – it took them so long to find them in the first place that they would only retrench them is absolutely necessary. For instance I have 3 Estimator positions vacant at the moment and no appropriate candidates have shown up yet. If the crash of the early 90s caused a skill shortage in construction what is the next busy period going to be like?


However there are still jobs going. Where are they?


  • Government work – the nation building stimulus work has already created positions and this will only increase. Billions of dollars have to be spent in areas such as schools and housing in a very short period of time, and QSs will be needed to control the spending. Government agencies, consultants and builders who have won this work will very quickly need commercial staff – some are already taking on extra resources in this area.

  • Infrastructure – if you want to become in demand then get some infrastructure experience such as roads, bridges, ports etc. Google the recent federal budget forecasted spending program and all will become clear.

  • Defence – the DOD does not necessarily employ QSs but the industries that supply them certainly do, such as builders and consultants that service that sector.

  • Claims – in the good times claims are sometimes put on the back burner. However when the economy tanks and people have more time to chase old money the requirement for claims experts increases. Both builders and claims specialist consultants are in need of QSs with experience in preparing claims, defending claims and expert witness capabilities.

  • Estimating – if you are a good estimator with commercial awareness and experience across the various procurement options then you are still very much in demand. There are currently a number of large builders and developers looking for estimators across Australia. Experience in civil works as well as large projects is always attractive.

So what about offshore? Well the UK is a basket case! Many QSs have been laid off and every week you hear of major firms retrenching another tranche of surveyors. Things have got so bad now that QSs are forming support groups so they can meet up and discuss their plans and lick their wounds. If you were thinking of moving to the UK – I would put that plan on hold for at least 6 months.


And what about Dubai – or the Middle East in general. Well Dubai is bankrupt and was bailed out by Abu Dhabi. Professionals are leaving the emirate in droves and there are classic stories of people abandoning car loans and rental leases and just jumping on planes and leaving their problems behind them. The airport car park is awash with abandoned cars! The party is over for a while in Dubai – how long for – probably not that long and when oil prices go back up the market should get back on track. Abu Dhabi has survived in better shape, and so it should, as it’s the main backer of Dubai and has all the oil. However consultancies and builders are still in wind down mode and if you were thinking of a move over to the desert I would leave it at least 3 months. You should also think about the recent offshore tax implications of the recent budget as this will certainly affect your decision if money is your impetus.


Asia will always be a power house and although our clients in Hong Kong are not urgently recruiting at present there will always be a need for a quality commercial QS that part of the world. There are a massive amount of infrastructure projects planned in HK over the next few years which should provide a very busy work platform. It will take a few more months for the dust to settle over there but a career move to Hong Kong is always a good option in my opinion.


So in summary if you are a QS in Australia you will have faired much better than most in other parts of the world. Whether the recent bounce in the stock market actually is the precursor to a recovery is too early to tell and many people will give you many different scenarios. But if you are an experienced QS with good credentials then your future should be pretty secure in the short and long term. Although there are fewer vacant positions across Australia than there were 12 months ago – they are still there and in slightly different areas…… so adapdability is also a required trait. Salaries are lower too but that correction is probably long overdue as wages were getting a little out of hand! $60k per annum for a student was just silly!


Next issue we will address the status for employers – watch this space.

1 comments:

Anonymous said...

Dear Adam


I have recently read your article on employment opportunities in Australia and was pleased to hear of your positive outlook in the near future. I believe that Quantity Surveyors and Estimators have become an absolute necessity in the building industry and continue to be horrified when Clients and Contractors alike fail to utilize the services of a QS in the hope of saving some professional fees. I further believe that QSs are especially needed in times of financial crisis such as these as it is now even more important to ensure that budgets are strictly controlled; that designs are rationalised; and that that the clients and contractors are both financially protected. Dave