The latest forecasts show Australia's overall construction activity is set to expand for the first time in four years, thanks to massive infrastructure programs in the southern states. 

The June Quarter Australian Infrastructure Metric from Infrastructure Partnerships Australia (IPA) and BIS Oxford Economics predicts a $7.3 billion surge in transport and utilities infrastructure, the strongest growth in nearly a decade. 

“We forecast that transport and utilities infrastructure will surge by $7.3 billion next year, the strongest growth in a decade and the strongest sign yet that we’ve finally hit bottom and rebounded on infrastructure,” IPA Chief Executive Brendan Lyon said.

“This confirms Australia’s transport infrastructure-led recovery, with the last quarter seeing the highest-ever level of rail infrastructure activity.

“Our forecasts will see the $7.3 billion in non-mining infrastructure more than fill the $6.6 billion retreat in mining infrastructure, with total engineering construction to grow for the first time since FY2012/13.

“The last four years have seen average falls of circa $14 billion year on year, meaning less infrastructure, less money in the economy and less jobs for people.

“These figures largely reflect the massive infrastructure programmes in NSW and Victoria, which are masking the collapse in infrastructure in the other states.”

Australian Infrastructure Metric

According to IPA, the Australian Infrastructure Metric is a major, long-term research initiative produced in partnership with BIS Oxford Economics. The Metric captures circa 30% of private construction activity each quarter, using this data to model ‘work won’ each quarter and forecasting construction activity over the coming years. 

About 20 of Australia’s largest civil contractors participate in the quarterly study. By capturing a substantial sample of ‘work won’ by these companies each quarter, the Australian Infrastructure Metric provides a timely indicator of civil construction activity in mining and public infrastructure. The Metric also captures procurement trends and contracting types, over time.

Image: An artist's impression of the Sydney Light Rail project, currently under construction.