Australian Commercial Construction Market Conditions – Actionable insights for suppliers

Focus on booming sectors

Shift your business development attention to the sectors with strong growth. For 2025 and likely 2026, that means Education, Healthcare, and Industrial projects. These sectors are driving the majority of new tenders. For example, if you supply HVAC systems, prioritise leads in hospital and school projects (which are plentiful) over, say, retail fit-outs (which are fewer). Tailor your marketing materials to speak to these sectors’ needs (e.g. emphasise infection control features for healthcare, durability and low maintenance for schools, etc.).

Leverage specification selling

Get your products specified early by influencing architects, engineers, and consultants. Use the spec trend insights – sustainability, prefab, tech integration – as conversation starters with designers. Ensure your product documentation highlights compliance with popular specs (energy ratings, Green Star credits, etc.).

Consider providing CPD presentations or design assist services to top architecture and engineering firms in your space. The goal is to become the basis-of-design choice so that when tenders go out, your product is baked in. This can significantly reduce competition (or make you the default supplier for whoever wins the build).

E1 is a key tool for building your specification strategy, because it gives you exclusive and direct access to builders, architects, and consultants. With E1, you can build relationships and a long-term specification strategy. Book a demo to get started.

Differentiate in a crowded market

With more subcontractors and suppliers vying for each job, clearly communicate your value proposition. This could be superior quality, cost-effectiveness, faster lead times, or technical support – whatever sets you apart. For instance, if dozens of suppliers can provide a given lighting fixture, but your company offers an extended warranty and on-site commissioning support, make sure the contractors know that. In tender submissions or sales pitches, address the pain points we identified: highlight reliability (to alleviate builder fears of contractor failure), showcase any cost-saving or labour-saving aspects of your product, and back up claims with case studies or data.

Align with sustainability and policy goals

Use the momentum of government policy to your advantage. If there are grants or incentives for certain products (say, Australian-made materials or green products), incorporate that into your selling strategy (“using our product could qualify the project for X rebate or Y credit”). Stay informed about upcoming codes or standards – e.g. if energy efficiency standards are tightening in NCC (National Construction Code), position your high-efficiency product as “future-proof” for compliance. Also, consider adjusting your product line if needed – for example, offering low-VOC or recycled content options if those are increasingly specified.

Be regionally savvy

Target geographic hotspots of construction. As noted, Queensland is particularly active – if you’re not traditionally present there, you might open a sales office or find a distributor/partner there to capitalise on the boom. Conversely, in NSW and VIC where competition is fierce, you might focus on niches or under-served areas (regional projects, smaller works) where you have a better shot. Keep an eye on state government announcements (e.g., NSW’s upcoming school tenders, VIC’s hospital projects) – these can guide your sales pipeline planning.

Use market intelligence tools like E1 (EstimateOne)

Make data-driven decisions using tools like E1 (EstimateOne)’s market insights. The platform can help identify which builders are most active in your product’s domain, what upcoming projects are in early stages (so you can get in early), and even keywords trending in specs. Set up alerts for projects that include your key product terms (for instance, if you supply “fire sprinklers”, get notified when specs mention that). This proactive approach ensures you don’t miss leads. Additionally, tracking win/loss on tenders can inform you which competitors are winning frequently – valuable competitive intel.

E1 can also help you in times of intensive competition. We can help you deepen your engagement with key decision-makers – not just at the GC level, but also owners’ project managers, cost consultants, and major subcontractors. If, for example, a particular electrical contractor wins many jobs, ensure they know and trust your brand so they pull it through into their bids. Similarly, maintain good credit terms and support for contractors under pressure – being seen as a reliable partner can make them stick with you when choosing suppliers for a job.

Communicate success and thought leadership

Finally, use content like this market report to position yourself as an industry expert. Share snippets of these insights in your marketing – e.g., publish a blog or LinkedIn post about how you see the education construction boom and how your company is ready to help schools build better. By echoing authoritative data (such as “X% increase in tenders in healthcare – and we have the solutions for hospitals”), you build credibility with potential clients. This approach can attract inbound leads who are looking for knowledgeable partners, effectively supporting your acquisition of new customers who were previously cold or with competitors.

By implementing these strategies, suppliers can turn market intelligence into tangible business growth. The companies that are proactive and targeted – rather than passive or broad-based – will be the ones to capture the most value in the current environment.

Conclusion

The Australian commercial construction sector in 2025 and 2026 presents a dynamic mix of challenges and opportunities. On one hand, builders and suppliers face cost pressures, fierce competition, and capacity constraints; on the other hand, unprecedented levels of public investment and evolving market needs are opening new avenues for work. EstimateOne’s unique lens on tender activity has revealed that the market is far from stagnant – it is adjusting and rebalancing, with clear winners (education, health, industrial sectors) and areas requiring strategic navigation (retail, private commercial projects).

For suppliers, the overarching message is one of strategic alignment. By aligning your efforts with high-growth areas, aligning your products with what specifications demand, and aligning your operations with the way the industry is now working (data-driven, relationship-focused, and efficiency-seeking), you can achieve competitive advantage. The data and analysis provided in this report serve as a foundation – the next step is to act on it.

E1 (EstimateOne)’s role goes beyond being a tender platform; we aim to be a partner in market intelligence. We will continue to monitor trends such as tender volumes, sector performance, and specification changes in real-time. Future editions of this Market Conditions Report will spotlight different sectors (look out for our next Sector Spotlight on the Industrial/Data Centre boom in the coming quarter) and provide updated insights to keep our community informed.

In the meantime, we encourage you to use the insights herein to sharpen your plans. Whether it’s refocusing your sales team on hospital projects, investing in product R&D for sustainable materials, or simply picking up the phone to reconnect with a builder who’s pivoting to a new sector – data-driven decisions will set you apart. The Australian construction industry is poised for growth in key areas, and with the right strategy, suppliers can ride that wave to substantial gains.

For a tailored discussion on how these market trends impact your specific trade or product line, or to learn how to tap into E1 (EstimateOne)’s data for your sales strategy, please get in touch with our team. Together, we can turn market intelligence into your competitive advantage.