Major projects down but not out
Major Projects Report 2015 launched today More than 300 industry gues
3 March, 2015 2 min read
Major Projects Report 2015 launched today
More than 300 industry guests attended the launch of the 2015 Major Projects Report in Brisbane this morning. The Report is jointly produced by CSQ and the Queensland Major Contractors Association (QMCA).
Adrian Hart, Senior Economist with BIS Shrapnel presented key findings from the report and Anthony Lynham MP, delivered one of his first speeches as Minister for State Development. Minister for Energy and Water Supply, Mark Bailey MP, also attended.
Report key findings
- A sharp drop in Major Project work occurred in 2013/14, with employment demand also following suit. Queensland engineering construction for Major Projects fell 22% in 2013/14, from a record $18 billion in 2012/13 to $14.7 billion, as Major Projects fell across all sectors.
- Workforce demand fell 23% in 2013/14, from a record 23,500 positions in 2012/13 to 18,100 positions, in line with the decline in Major Project work.
- An upswing in Major Project work is now expected from 2016/17, rising further through to 2018/19. However, much of the next cycle of work is currently unfunded and subject to risk.
- Resources projects are still important in generating Major Project work. Mining investment, though lower, will still drive more than half of all Major Project work done through the forecast period, with (albeit risky) projects such as the Galilee Basin and LNG projects key drivers.
- Public infrastructure investment will be a key driver of growth in Major Project work from 2016/17, led by transport projects, particularly roads and railways. However, increasing public sector investment is highly dependent on the successful funding of projects in the short term and reforms to public sector financing and procurement in the medium term.
- In line with shifts in the type of projects proceeding, there will also be shifts in regional demand for skilled construction labour, with demand moving away from the Gladstone region and the Bowen Basin coalfields to South East Queensland and the Galilee Basin.
- The next upswing in Major Project work in Queensland is likely to coincide with increasing demand for infrastructure investment from other Australian states as well as globally through the G20 Brisbane Action Plan.