A recent report by Timetric reveals investment in infrastructure projects for rail and road will benefit Australia’s stagnant construction industry.
The industry slowed down as a result of the industrial sector and a poor demand for mining-related construction.
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Titled ‘Construction in Australia – Key Trends and Opportunities by State and Territory to 2020‘, the report states multiple programmes launched by the government are expected to support the growth of Australia’s construction industry. With such investments, industry growth is expected to improve by 2020.
Therefore, the government plans to develop existing railway infrastructure to encourage economic growth and sustainability and to promote improved movement of goods and people across the country.
As part of the government’s plan, a A$10.7bn investment was awarded to an inland rail project introduced in 2014. The project involed the construction of 1,711km of railway track between Melbourne and Brisbane, to be completed by 2025.
In addition, development programs such as the Black Spot, Roads to Recovery, and National Highway Upgrade have also been launched, along with investments in education, healthcare, and retail.
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By GlobalDataThe report mentions a decline in the Australian construction industry by 4% in real terms in 2015 and is projected to witness a compound annual growth rate (CAGR) of -1.55% from 2016 to 2020.
