Australia’s next fiscal year to see big boom in construction led...

Australia’s next fiscal year to see big boom in construction led by rail and roads
Australia’s next fiscal year to see big boom in construction led by rail and roads

By Kalyan Kumar @diplomatist10  on November 03 2015 6:29 PM

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A residential construction worker watches new apartments being built in Sydney's inner-city suburb of Zetland, June 24, 2015. A positive outlook from SMEs in NSW can be attributed to infrastructure projects in the state and Sydney's property market.   Reuters/Jason Reed
Despite the shadow of an economic slowdown, Australia is set to witness hyper activity in construction in the next financial year with apartments, roads and rail projects driving the new infrastructure boom. This has been revealed in a recent construction outlook survey.   
The emerging boom will be the legacy of "infrastructure prime minister” Tony Abbott, whose budgets had earmarked big outlay for projects on modernisation of major roads.
According to Australian Constructors Association’s executive director Lindsay LeCompte, the outlook manifests a growing confidence in the construction sector and its recovery from the resources slowdown, reports The Australian Financial Review.
Best year for construction
The outlook report of the lobby groups also predicts 2016-17 to be the best year for construction in four years, after the resources slowdown set in. Many construction companies are expecting an average 4.7 percent growth in the coming year.
According to the outlook, there will be robust growth in multi-level apartment development in line with high apartment building approvals in Sydney, Melbourne and Brisbane. From the growth rate of 13.7 percent in 2015/16, it will remain at 8.1 percent in 2016/17, reports Sourceable.
Engineering construction is expected to face subdued growth. It may fall from the 5.2 percent rate of 2015-16. But, big-ticket road and rail projects such as Sydney's WestConnex and the Victoria's East West Link project will drive up the engineering construction at 4.8 percent growth in 2016-17, the survey noted.
Good for Economy
Australian Industry Group chief executive Innes Willox said the outlook for construction was balanced and good news for the broader economy.
“It's a promising outlook of a more rapid rebound than had previously been expected," he said.
The revival in engineering construction in 2016-17 will happen despite the feared contraction from retreat of mining and resource projects. That will be compensated by strong expectations of a pick-up in transport and communications projects.
“With commercial construction anticipated to lift in 2015-16 and 2016-17 and with the apartment building boom expected to continue, the outlook is for the most balanced pattern of growth for many years," he added.
In the East West Link, there was a deadlock over the use of $1.5 billion federal funds because of an embargo set by the Abbott government against using the funds for any other project.
Prime Minister Malcolm Turnbull ended the standoff on that issue between Victoria and Canberra. Abbott wanted the funding to be used for the East West project and not for any other projects. Now Turnbull has eased the ban and the money could be used for funding the Metro Rail plan.
Abbott had campaigned for the 2013 election promising $1.5 billion each for Sydney's WestConnex and Melbourne's East West Link as part of the 15-year infrastructure plan.


http://hotcopper.com.au/threads/tox...victoria-to-queensland.2632184/#post-16323349

I don't think there will be any shortage of PASS
As the guy in Jaws famously said
"you're gonna  need a bigger boat"