The report suggests that Queensland has experienced a substantial boom cycle in construction activity and major project work. The report focuses on major engineering construction projects defined as those exceeding $100 million.
The boom cycle was driven by public infrastructure and resources investment and interrupted by the global financial crisis over 2009 and 2010.
A renewed wave of investment then drove major project work to new heights.
In recent times, the Queensland major contracting industry has been affected by rapid increases in construction demand, regional skilling, logistical and infrastructure demands, volatile shifts in global economic conditions, commodity prices and exchange rates and natural disasters, with threats to industry productivity and competitiveness.
With the boom now fading, Queensland faces new challenges.
This report highlights the outlook for major engineering construction activity in Queensland, the workforce resourcing requirements this necessitates for contractors and government agencies, and the implications for the industry as a result of these findings.
The key points from the 2014 Major Projects Report are that global economic growth is expected to gradually recover through 2014 but the Australian and Queensland economies are likely to experience weaker growth as the resources investment boom transitions to the production and export phase.
Major project work unravels
A sharper decline in major project work is now expected, compared with the 2013 Report, as both public and private investment unwinds from unusually high levels.
Major project work is forecast to contract nearly 50 per cent over the three years to 2015-16, to a trough of $9.5 billion.
The outlook for major project work is now much weaker than the previous report due to weaker levels of funded and unfunded work, with almost all unfunded work in 2013-14 not expected to proceed.
Mining and heavy industry construction projects are most affected with a 45 per cent decline, displacing more than 8000 workers.
An upswing in major project work is expected from 2016-17, rising further over 2017-18.
Source: Queensland Major Contractors Association, BIS Shrapnel, Construction Skills Queensland