The increasing shift of Australia’s industrial base towards the delivery and consumption of services has highlighted key opportunities within the nation’s construction industry.
According to the Albanese Government’s first Intergenerational Report that was recently released, Australia’s economic growth is projected to increase by an average of 2.2 per cent each year compared to its previous 3.1 per cent. This slower economic growth rate is predicted to exacerbate budget pressures. However, the 2023 Intergenerational Report details the government’s plans to meet global challenges and seize future opportunities for economic growth, budget repairs, sustainable solutions and workforce developments.
Construction and infrastructure is crucial for population and productivity growth as it has a direct impact on employment opportunities, environmental targets and affects all other industries. The report acknowledges this as it details that the government’s commitments to infrastructure expenditure has increased vastly in recent years. This can be seen through Australian Government’s rolling decade-long land transport infrastructure pipeline, which has increased from $75 billion in the 2018-2019 budget to approximately $120 billion in the 2023-2024 budget; mostly delivered under the Infrastructure Investment Program.
Australian Constructors Association CEO Jon Davies stated that the construction industry intersects with almost all government priority areas and plays a pivotal role in the delivery of essential infrastructure for the nation’s ageing population and achieving net zero targets.
“The financial implications are eyewatering. The construction industry holds the potential to save the Australian economy an $56 billion annually. It can do this by bridging the current productivity gap between construction and other major industries.
“The potential productivity savings are enormous — alone, they would fund the NDIS or the aged pension. Improving the productivity of the construction industry carries national significance,” said Davies.
The Australian Constructors Association has urged the government to collaborate with all states, industry representatives and unions to develop a 10-year National Construction Strategy. The association believes that this strategy would lay the groundwork for a more sustainable and productive construction industry, benefitting all Australians.
“Just by bringing construction productivity up to the national average, we could revitalise national productivity growth, reaching levels not witnessed since the 1990s,” said Davies.
