Patch repair, waterstops for concrete structures and other on-site essentials will be more in-demand in Australia in the next two years, as the country plans to spend more than $20 billion for road construction projects.
BIS Oxford Economics predicted that the government’s investment in highways and arterial projects will primarily drive the record-high spending for such infrastructure plans between fiscal year 2018 and 2019.
BIS outlined its forecast from the Road Construction in Australia 2018 to 2032 report, which noted that growth will mostly stem from major projects in New South Wales and Queensland. Some of the prominent developments plan in New South Wales include upgrades for the WestConnex, NorthConnex and Pacific Highway.
In Queensland, the Gateway Motorway, Bruce and Warrego Highways will drive investment in road construction. The report also noted that public spending on road infrastructure projects has increased 27 percent since fiscal year 2015, although it may level off after fiscal 2018 as the government will turn its investment focus on rail development.
Adrian Hart, BIS associate director of construction, maintenance and mining, believes that there will be “little room for further increases” on road investments by 2020. He expects federal and state government to ramp up their spending on rail infrastructure.
In the next five years, projects such as the Inland Rail and other similar plans in major capital cities will emerge as the priority. While this may be bad news for road contractors, suppliers of concrete products may expect to gain more business over the coming years.
For now, road developers should plan ahead on how to submit bids for government work. The forecast $20 billion budget presents many opportunities for businesses, so pay attention to where you source cost-efficient construction supplies. This will be a factor for clinching road development contracts.