New South Wales plans to instigate further growth in the construction industry, by investing an unprecedented $80.1 billion in infrastructure over the next four years.
The state government said that the planned budget would benefit many enterprises, from suppliers of nuts and bolts to manufacturers. It will uplift an already booming engineering sector, which recorded strong activity in November 2017.
Aside from businesses, employment growth will be another significant effect of the state’s funding construction. State treasurer Dominic Perrottet believes that the expected benefits stem from a diverse economy.
Non-residential construction projects have added more than 7,000 jobs as of August 2017, according to the state government.
New South Wales accounts for as much as 58 percent of full-time workers in Australia, according to Perrottet. Hence, a conducive environment for all businesses will be crucial to support job growth. Across the country, the engineering sector’s growth streak links to activity in New South Wales.
Fewer apartment construction projects failed to dampen the overall construction industry in November, thanks to engineering activity. The sector has grown in the last 10 months, according to the Australian Industry Group and Housing Industry Association Performance of Construction Index.
The index rose to 57.5 points during the month, while a reading above 50 suggests expansion. In 2018, this trend may continue, as non-residential construction will increase in Australia, said Commonwealth Bank of Australia (CBA) senior economist Katrina Clifton.
CBA expects more than $12 billion spent on non-residential and public infrastructure projects this year, based on the Australian Bureau of Statistics’ forecast.
New South Wales appears to be in the lead across Australia in terms of infrastructure investment, given the scale of its construction budget. How confident are you with launching new development projects in the state?