Transport infrastructure construction will underpin broader building and construction activity over the next four years according to Master Builders Australia’s latest Building and Construction Industry Forecast.
“Government investment into major transport infrastructure projects is forecast to outpace private investment into resources related projects by a ratio of almost 2:1 over the next four years, particularly as $50 billion in major LNG project activity exits the pipeline,” Matthew Pollock, National Manager of Economics and Housing said.
“In terms of the value of work done, major public infrastructure projects are forecast to support growth in transport related construction of 25.2 per cent this year and rise to 33 per cent in 2018,” he said.
“This surge in transport infrastructure construction couldn’t come at a better time, with a forecast moderation in residential building activity predicted to commence in early 2018,” Matthew Pollock said.
“However, new housing commencements this year are still expected to top 200,000, the third year in a row and, looking forward, new housing starts are forecast to average over 180,000 each year for the next four years,” he said.
“This shows that despite some strong cyclical movements in some sectors of the industry, overall building and construction activity remains resilient with the value of work done forecast to reach $190 billion in 2017,” Matthew Pollock said.
“As a result of this industry outlook the demand for skilled labour is forecast to create 120,000 new skilled jobs by 2020,” he said.
“However, it is imperative that the powers of the ABCC are maintained as we progress through this massive pipeline of publicly funded transport infrastructure projects to protect the community from being forced to pay up to 30 per cent more due to thuggery, lawlessness and unlawful building union tactics,” Matthew Pollock said.