Green light for transport construction boost

According to Master Builders Australia, construction in this country is set to ride a wave of activity thanks to a number of major looming transport projects, with thousands of small construction firms set to benefit.

A report released today (August 21) by Master Builders Australia, Master Builders Australia Forecasts: 2019/20 to 2023/24, states that engineering and civil construction activity should expand strongly until 2021/22, at a rate at or close to that seen during the mining investment boom at the start of the decade.

"As a result of record activity in natural resources investment, the volume of engineering construction had peaked at $142.8 billion in 2012/13," said Master Builders Australia Chief Economist, Shane Garrett.

"The subsequent slump was heavy, involving a 38.6% reduction in activity.

"While latest data indicate that engineering construction activity has still been battling tough conditions, the eventual roll-out of government-led infrastructure projects will see growth return in the near future.

"We forecast that the volume of engineering construction work will expand by 12.5% by 2021/22 compared with 2018/19. Thereafter, activity will ease back as the pipeline of infrastructure work comes to an end.

The body predicts that both road and rail construction will see a major uptick, while telecommunications-related activity will recede with the completion of the National Broadband Network.

"As well as benefitting thousands of small building and construction businesses across Australia, a speedier roll-out of infrastructure projects by government would give the wider public real and visible evidence that our economy continues to move forward," said Mr Garrett.

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