According to the BIS civil construction report Engineering Construction in Australia 2011/12 – 2025/26, completed civil work would jump around 27% over 2011-12 alone – or a whopping $23 billion – driven by a surge in mining and LNG-related works, as well as flood reconstruction efforts in Queensland.
A further 16% growth is expected over 2012-13 and 2013-14 before work peaks in 2014-15.
A decline in the work done was forecast for 2015-16, the first since 2000-01, with further declines expected through the remainder of the decade.
In addition, the positive aggregate picture for the civil construction industry for the next few years masks weakness across non-mining segments and regions.
“Right now, it’s a monster resources battle between Queensland and Western Australia,” BIS infrastructure and mining senior manager Adrian Hart said.
“Both states are expected to see civil construction activity surge around 40 per cent in 2011-12 alone, led mainly by LNG and bulk commodities infrastructure.
“They will soon be joined by the Northern Territory and South Australia, with activity in those regions centred on the Ichthys LNG and Olympic Dam expansion projects respectively.”
By contrast, New South Wales is forecast to see near zero growth in civil work through the next three years, while Victorian civil work will decline sharply, according to the report.
This article first appeared in ILN's sister publication ConstructionIndustryNews.net.
