Many industries in Australia became crippled due to the coronavirus pandemic. Most sectors were forced to close to manage or reduce expenses, and the construction industry was part of them. Public construction has only been one of the few operations maintained to some extent. 

As the Australian government focuses on an infrastructure-led economic revival, the country’s construction industry is expected to bounce back in 2021 and grow by 2.6 per cent in real terms. This is thanks to accelerated infrastructure spending. 

The Challenges Brought About by the Pandemic 

The construction industry was generally considered an essential service, so workers were exempted from lockdown restrictions. While this is the case, construction work was still influenced due to the effects of the pandemic. This caused limitations of labour availability on worksites, requirements for social distancing protocols, supply chain disruptions, plummeting oil prices, a shortage of subcontractors and materials, and the termination of contracts. 

The pandemic also affected consumer and investor confidence and weakness in the residential sector. As a result, the net value of construction work completed in Australia declined by 2.8 per cent in the first three quarters of 2020. 

Reviving the Australian Economy After the Pandemic

To revive the economy and grow the construction industry, the Australian government announced last mid-June 2020 that 15 infrastructure projects worth 72 billion dollars would be fast-tracked. These will support over 60,000 direct and indirect jobs.

In addition, the federal, state and territory governments agreed to cut approval time for infrastructure projects by half. Because of this, the government announced plans to invest 7.5 billion dollars in transport infrastructure projects across the country. It’s a move that reinforces their stance of committing to infrastructure projects since the onset of the pandemic, with economic growth predicted to reach 14 billion dollars over the next four years.

For this reason, the construction industry is expected to gain further momentum in the following years. This contributes to the annual average growth of 3.4 per cent between 2022-2025 because of several projects. This includes the government’s investments in road and rail infrastructure projects, the upgrade to the National Broadband Network, the First Home Loan Deposit Scheme, and the HomeBuilder program.

Furthermore, Australian construction companies are among the leading ones in the regional COVID-19 recovery, with 30 per cent prepared for the “new normal.” InfoBrief released this in the findings in their report titled “Road to Recovery: Overcoming COVID-19’s Impact on the Construction Industry with Digital Technologies.”

What’s Next?

Most state governments have released budgets for 2020-2021, with a significant amount of funding focusing on infrastructure projects in the transportation, residential, health, and education sectors. 

The construction industry’s growth will be supported by an investment of 110 billion dollars, particularly on transport infrastructure projects over the next ten years. Besides infrastructure-led stimulus and recovery plans announced by the Australian government, there is a re-prioritisation of projects and a greater focus on investments expected to produce the greatest economic benefits.

Conclusion

The construction industry has a significant impact on the country’s overall economic development. Although there was a recent decline because of issues on labour, costs, and materials, many infrastructure projects are in the works to further manage and overcome the impact of the health crisis. Meanwhile, if you are in the process of construction planning and are looking for caulking contractors or silicone sealers, then you’ve come to the right place. 

At Quality Seal Australia, we specialise in caulking and silicone sealing services. With our expertise, experience, and knowledge, we ensure our work complies with the stringent demands of the Australian building standards. Get in touch with us to discuss your needs and requirements!