Welding is on top of its game within the next few years. Market data revealed that it can earn up to $32.6 billion by 2023. Within the same forecast period, the compound annual growth rate (CAGR) can be as high as 4.3%, according to Technavio.
Three Biggest Markets
Welding’s growth is due to its three biggest markets. These are automotive, transport, and construction. The automotive industry can be a volatile market. Consider the sector’s condition during the Great Recession in North America. In Australia, most of the car manufacturers already stopped production in the country. This was partly due to the people’s preferences for imports than locally made products.
On the other hand, the automotive sector benefits from a higher discretionary income. Australians also continue to spend on vehicles. In fact, ownership is increasing it can eventually outnumber people.
Construction outlook in Australia is both positive and negative, depending on the sector. For example, experts believe residential construction will slow down in 2019. For this year, many projects will come to completion.
The stricter regulations on homeownership also affect the demand from foreign investors. Data from the Foreign Investment Review Board (FIRB) revealed that the value and quantity of residential applications declined from 2016 to 2017. Approvals decreased by 67%.
Fortunately, commercial and civil construction can help offset the losses of residential development. The government is also pouring a lot of money on improving road networks and transport infrastructure. New South Wales, for example, allocates $52 billion for different transport-related projects within the next four years.
The Present and Future Challenges
Indeed, welding is looking into many possible earning opportunities, but certain factors can act as barriers to industry growth. One of these is a labour shortage, especially for businesses that need skilled workers such as welders. The average age for welders in the country already crossed 55, which means many are already in retirement.
The job is also part of the Medium- and Long-term Strategic Skills List (MLTSSL), which means it is in demand in Australia. To help augment the skilled labour force, companies can consider renting welding equipment. This setup provides two benefits:
- Access to New Technology – The best and newest welding equipment demands a high capital outlay, which might be a problem for growing businesses. Hiring one will allow them to use advanced machines at a significantly cheaper cost.
- Efficiency and Productivity – Most of the new technologies for welding machines promote accuracy, efficiency, and productivity. All these can help offset the challenges that come with a lower number of available workers.
- Scalable Acquisition – In the long run, owning a welding machine will become more economical or practical. Many welder-for-hire companies, though, now permit long-term customers to participate in a rent-to-own programme.
The government has also relaxed the English and skill requirements for Australian permanent residency. The intention is to boost the migration of workers to areas where employers are having difficulty filling the vacancy.
Welding is one of the processes that serve as a foundation for many industries. These include automotive, transport, and construction. Because of its scope, the demand is less likely to disappear. The sector, though, needs to face its challenges head-on, the first of which is a labour shortage. Opting for rentals and easing worker immigration policies can provide practical solutions.