Report provides encouraging mid-term forecast for Queensland major projects industry

CONSTRUCTION Skills Queensland (CSQ) and the Queensland Major Contractors Association (QMCA) have released their 2016 Major Projects Report update which shows a better than expected outlook for the state’s construction industry over the next two years.

The new report, which provides an update on the CSQ/QMCA Major Project Report released in February, shows an improved forecast for 2016/17 and a significant increase for 2017/2018. It is expected the level of activity in 2017/2018 will not only exceed previous forecasts but also be 50% higher than 2016/2017.

According to the report, the rise in activity will be driven by accelerated or new projects such as the Ipswich Motorway Stage 1 and the North Coast Freight Rail Capacity. Higher forecasts for telecommunications (NBN) and electricity forecasts for telecommunications (NBN) and electricity (renewables) works.

CSQ CEO Brett Schimming said it was pleasing to see the industry returning to modest growth.

“During the last five years we have seen engineering construction activity returning to normal levels after reaching a historic high during the resources boom. This trend is expected to continue for the remainder of this year,” he said.

“However in 2017/2018 the industry will begin a slow recovery, with the value of engineering construction work set to rise.

“The recovery has come sooner than expected with progress being made on the Amrun and Dugald River projects.”

With many large projects on the horizon, Mr Schimming said it was vital for the industry to retain a skilled pool of workers.

“Civil construction occupations will continue to be important to help build and maintain infrastructure assets including railways, ports and harbours, roads, pipelines, energy and telecommunications,” he said.

“It is vital these skills are retained by the industry to meet the next cycle of construction work that will be shaped by private and public infrastructure along with resource investment decisions,” he said.

“CSQ is working closely with industry and government to ensure that these sectors have the right skills, in the right place and at the right time.

“A flexible and innovative construction workforce is more vital than ever to meet the skills demands of the future.”

The report highlights public investment as a key growth driver for major projects in the coming years.

“Historically low construction and capital costs represent an opportunity for State and Federal Governments to embrace productivity-enhancing public infrastructure investment,” he said.

“Commodity prices may fluctuate in the future which could place some major resource projects in jeopardy so it is important that we remain committed to infrastructure spending to help mitigate these risks. “

www.csq.org.au.

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