Recent statistics from the Australian Bureau of Statistics (ABS) revealed a 3.3% rise in engineering construction activities for the September quarter, underscoring the sector’s vital contribution to economic momentum.
The increase in engineering construction was significantly influenced by a robust 5.5% growth in public sector projects. This surge reflects the government’s heightened focus on enhancing infrastructure to facilitate long-term economic expansion and stability.
In contrast, the private sector experienced a more restrained growth rate of 1.4% in the same period. This modest increase points to ongoing challenges in garnering private investment in engineering construction.
Shane Garrett (pictured above left), chief economist at Master Builders Australia, highlighted the sector’s critical role.
“Engineering construction is now one of the economy’s strongest performers, and is keeping economic growth above the waterline,” Garett said.
“The contribution of public infrastructure work is crucial: activity here is +13.4 per cent higher than a year earlier. Boosting our stock of infrastructure like this means that our economy will have more room to growth over the long term and reduces inflationary pressures re-emerging in the future.”
Denita Wawn (pictured above right), CEO of Master Builders Australia, also emphasised the broader economic benefits of the industry.
“When the building and construction industry is strong, so too is the economy. For every $1 million invested into the industry, $3 million is returned to the economy,” Wawn said.
“Investment in engineering construction like roads, rail and other critical infrastructure, plays a crucial role in addressing the housing crisis. Private sector demand has been lacking in momentum for some time and the upcoming federal budget needs to address this.”
The data and expert opinions collectively underscore the pivotal role of engineering construction in not only fostering economic growth but also in preparing the foundation for Australia’s future development and addressing key societal challenges such as the housing crisis.
For more data, access the ABS statistics here.
