Infrastructure Increase in ‘Spades’ as Value of Queensland Construction Rises 11% to $21.2 billion in 2018 FY
Engineering construction across Queensland is rising again according to an analysis by the Chamber of Commerce and Industry Queensland (CCIQ) as infrastructure projects across the state comes online.
After the steep post mining boom slump (where activity hit a record high of $47 billion in FY2014), Engineering Construction activity has stabilised following a resumption of growth in the last financial year.
CCIQ Head of Industry, Dan Petrie said the increase within the utilities segment has been a stand out with construction work done increasing 60% to $5 billion over the 12 months to June, 2018.
“Despite what has been a rather vexed political challenge facing policy makers, the long talked about private investment in renewables is finally coming to fruition which is an obvious positive in placing downward pressure on the current electricity pricing regime.
“Additionally transport construction through projects including the Toowoomba Second Range Crossing and North Brisbane M1 upgrade are clearly welcome,” Mr Petrie said.
CCIQ notes however, the infrastructure pipeline of work is likely to moderate before an expected uptick with the proposed Cross River Rail ‘ramping up’ before the end of the decade.
Whilst public infrastructure spending has lifted over the past two years it is still low in a historical context relative to gross state product.
“Billion dollar headlines might play well in the media but the projects we are discussing have previously been announced,” Mr Petrie said.
As the number of people arriving in Queensland continues to accelerate, CCIQ calls on the government to ensure that infrastructure spending continues to keep pace with population growth. We do not want to see people’s living standards go backwards, nor do we want to see business costs rise (through increased congestion etc).