A report from Infrastructure Australia has shown how skill shortages and rising costs are impacting Australia’s infrastructure requirements.
Infrastructure Australia has released its Market Capacity Report 2024, has lifted the lid on the state of play in Australia’s infrastructure pipeline. A key finding is energy and social infrastructure projects are driving the main growth in the $213 billion five-year Major Public Infrastructure Pipeline.
The latest report from Infrastructure Australia is the fourth annual Market Capacity Report which follows on from the 2023 edition.
The latest analysis shows a six-fold increase in renewable energy projects over the next five years across all construction activity in Australia. This has been driven by investment from governments and the private sector.
In contrast, investment in major transport projects has dropped to make up a total $126 billion of the pipeline, while buildings and utilities have grown to $71 billion and $16 billion respectively.
“This recalibration in investment is due to some governments coming off of significant investment in transport projects and changing focus to addressing the housing crisis and transitioning to a net zero future,” Infrastructure Australia chief executive Adam Copp said.
“The nation’s infrastructure ambitions continue to be challenged by skills shortages, stagnant productivity growth, and rising material costs.”
Copp said the latest findings, showcasing the growth in renewable energy, needs to be accommodated by governments and the private sector.
“As this investment in renewable energy increases, both governments and the private sector should plan for the logistics and enabling infrastructure needed to support those projects,” Mr Copp said.
“Equipment such as wind turbine blades can measure up to 70 metres in length and seven metres in diameter—we need to ensure we not only have the resources to deliver these projects, but also the enabling infrastructure required to get the resources to where they are needed.”
The past year has seen mixed fortunes in the infrastructure pipelines of individual states and territories. Some in the quarrying industry has pointed to a slowdown in New South Wales and Victoria across the past year. Those concerns have been illustrated in Infrastructure Australia’s latest report.
“We are seeing the Northern Territory and Queensland’s pipelines growing by a total of $16 billion, while NSW and Victoria’s pipelines have decreased by a total of $39 billion,” Copp said.
“The biggest challenge that comes with increasing activity in regional areas is how to attract workers as well as get the materials needed to complete these projects.”
While demand continues to outstrip supply, it also needs to be supported with a greater workforce across Australia. The latest data from the report shows that burnout and stress are common concerns for workers in the construction industry and associated sectors.
“In order to attract new workers to the industry and retain the ones we have, government and industry need to address the underlying cultural issues that are holding productivity back and driving people, particularly women, away from a career in construction,” Copp said.
“This should be an industry of choice, but the reality on the ground is it’s a harsh working environment—we see burnout, stress, and incredibly poor mental health and wellbeing.
“Addressing culture will be critical to ensuring we can deliver the nation’s infrastructure priorities.”
