beware of the time lag

The scaffolding game is one of building projects. Thus these take some time to start and some time to finish. I live in Perth and I can certainly say there are still a lot of cranes on the horizon and lots of scaffolding surrounding partly constructed buildings. Beware however because new building approvals are down significantly and thus in time, upon completion of current contracts, cranes and scaffolding needs will decline significantly, until such time as new projects start. Thus, in the absence of any company making projects, i.e. a Gorgon win, current results not necessarily correlate to the real business cycle in this business. Thus annualising part year results is dangerous to your wealth!