Infrastructure and construction is on the rise24 June 2016
The civil infrastructure and construction sectors are currently seeing a positive shift in investment due to the decline of the mining industry. It was reported last month that mining and construction companies have shifted their focus from chasing mining services work to putting more focus back on the civil infrastructure side of the business.
In an interview with the Australian Financial Review, Martin Monro, chief executive of Watpac, was positive about the shift in revenue. It was reported that mining services now contributes to about 10 per cent of the company's workbook by revenue, as opposed to 30 to 35 per cent when the division was at its peak in 2012 and 2013. "However, group revenue is about the same so what has happened is construction has stepped up to absorb some of the reduction in mining services," Monro says.
Construction companies are also riding the wave of real estate construction and property redevelopment caused by the recent interest rate cuts. The Gold Coast in particular has recently seen $10 billion of new and upcoming infrastructure projects being added to the pipeline. This includes the $670m refurbishment of Pacific Fair, as well as $800 million to be spent on sporting infrastructure for the 2018 Commonwealth Games.
Furthermore, with the ramp-up of projects like the National Broadband Network, Melbourne’s Metro Rail, the Inland Rail project in Brisbane and Pacific Highway development in New South Wales, it’s clear that public infrastructure will contribute to more jobs in the near future.