Not surprisingly, civil construction activity is set to power ahead over the coming year as work associated with the National Broadband Network (NBN) gets into full swing.
The Construction Forecasting Council (CFC) expects the value of work done on telecommunications facilities to increase from $3.815 billion last year to $5.558 billion in the year to March 2012.
Strong growth is also expected in electricity generation. After a flat twelve months in the year to March 2012 ($11.185 billion), the CFC expects activity to power up to $12.754 billion in financial year 2012/13 thanks to work associated a number of projects in Victoria, including the Yallourn Gas Power Station Project in Victoria’s La Trobe Valley ($2 billion).
Such bullish sentiment is also reflected in the most recent Construction Outlook report from Australian Industry Group (AIG) and the Australian Constructors Association. According to that report, work on electricity projects is expected to surge by more than ten percent this year and around fifteen percent next year. That on telecommunications is expected to grow by almost fifteen percent in each year.
(For the purposes of this article, ‘civil’ construction refers to work on telecommunications and energy projects. Other forms of civil or engineering construction, such as work on transport or water infrastructure or mining are considered separately in other editorials.)
Longer term, the CFC expects conditions to flatten out, with the value of work in telecommunications remaining below $6 billion until at least 2017/18 and that in electricity easing back throughout the remainder of the decade.
Significant statewide developments – energy
With four big projects scheduled to start before the end of the year, all the action is in Victoria.
According to CFC forecasts:
• Activity in Victoria is set to increase 26.7% in the twelve months to March next year to come in at $2.515 billion on the way to reaching $2.851 billion in financial year 2012/13.
Apart from Yallourn, big projects on the immediate horizon include the Stockyard Hill Wind Farm ($1 billion), the Macarthur Hill Wind Farm ($850 million) and the Shaw River Power Station at Orford ($800 million).
• Queensland is the other growth state, with activity expected to rise from $2.177 billion in the year to March 2011 to $3.435 billion in financial year 2012/13.
• Subdued activity is expected in all other states.
Significant statewide developments – telecommunications
The pattern in telecommunications is consistent nationwide, with all states experiencing strong activity over the next year before a flattening out thereafter.
According to CFC forecasts, in the twelve months to March next year:
• Activity in New South Wales/ACT will increase 47% to come in at $1.814 billion
• In Victoria, the value of work will be up 30.7% ($1.375 billion)
• In Queensland, activity will increase 76.9% to $1.170 billion
• The value of work in South Australia ($489.2 million) will be up 36.1%
• Western Australia will grow 48.1% to $456.3 million
• Tasmania will be up 51.7% to $123.3 million
• Activity in the Northern Territory will increase by 14.3% to come in at $131.7 million.
