Australia’s infrastructure, energy and housing capacity threatened by shortages, reports finds
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The news: Challenges accessing building materials and a workforce shortfall of 229,000 is threatening Australia’s infrastructure, housing and energy agenda, according to Infrastructure Australia's annual market capacity report.
The numbers: Infrastructure Australia’s chief executive Adam Copp said that Australia's infrastructure sector is delivering a major pipeline valued at $230 billion over five years, alongside plans to build 1.2 million new homes as well as investment in the energy sector, which is quadrupling over that same period.
However, in its third year highlighting significant labour shortages, the annual Infrastructure Market Capacity report finds that Australia’s infrastructure workforce will need to grow by 127% to meet demand. Trades and labourer shortages are growing at the fastest rate and will remain high until 2025, peaking at 131,000 full-time workers by 2024.
The context: The Infrastructure Market Capacity report identifies key trends in public infrastructure investment, and looks at market capacity constraints that could prevent delivery of the major public infrastructure pipeline. The 2023 report includes 14 recommendations for the Federal Government to act in partnership with state and territory governments and industry to improve the demand-supply balance, and the long-term sustainability of the construction sector.
What they said: “Construction activity and demand for building materials, skills, and labour is at a historic high," Copp said. “With so much construction activity underway, the industry is finding it increasingly difficult to source key building materials and workers – particularly engineers, skilled trades and labourers."
“A clear message in this year’s report is that limited access to local steel and cement, as well as localised shortages of quarry products is contributing to price uncertainty in the supply chain, leading to delays and cost overruns.”
The source: Infrastructure Australia Media Release
