Can we expect an infrastructure boom?
Posted on 27 August 2019
Macromonitor has released a new forecast which shows the infrastructure boom is still yet to reach its peak. Spending in the sector is set to hit a record of $42 billion in the 2022-23 fiscal year, a huge increase from $30 billion spent between 2018-19.
This peak was initially expected to occur much sooner, but significant project delays and labour shortages have extended the wait. However, as stated by Nigel Hatcher from Macromonitor, this isn’t necessarily a bad thing.
“It looks like the boom is going to be a bit more protracted than we previously thought”, “It’s just a stronger cycle for longer.”, Mr Hatcher said.
The Sydney Metro is a huge driver for infrastructure spending currently. Major projects set to drive the boom forward over the next few years include Sydney motorway WestConnex, Sydney’s proposed Western Harbour Tunnel, Melbourne’s Metro Tunnel and West Gate Tunnel.
A lot of these projects are still in the early planning stages but it’s safe to say that we can anticipate a healthy amount of activity and growth within infrastructure over the next few years, with total spending on public infrastructure set to average out to $65 billion per year over the next decade.