May 14, 2017 / News
With the recent release of the Federal Goverment's Budget 2017-18, there are clear winners and losers.
One prominent winner in terms of federal funding allocation, is the construction industry. The construction industry will see an additional $75 billion pumped into various infrastucture projects for road and rail across the country. These projects will be rolled out over the course of approximately ten years, through to 2026-27. Infrastructure projects in the pipeline include NorthConnex in Sydney, Upgrades to the M80 Ring Road in Melbourne, and so on.
The increased funding that infrastructure will be receiving, highlights the government's commitment to future-proofing the country by adding to and enhancing the existing infrastructure across Australia. Since Australia's population is predicted to rise exponentially in the near future, investment in infrastructure will be a vital factor in accommodating for the masses and keeping Australia moving.
This $75 billion boost from the federal government has led to some dramatic increases in the stock prices of some construction companies. Stocks in Australia's largest construction group, CIMIC, went from $1.86 to $40.52. This is the highest increase CIMIC has experienced for nine years. Also, stocks in Downer EDI have jumped from 22 cents to $6.34.
This indicates that fruitful times may be ahead for Australia's construction industry, and the 'boom' period just might be extended, with large-scale projects lined up.
Western Australia will also benefit significantly from the increased infrastructure construction funding allocated in the Federal Budget 2017. A $2.3 billion roads and rail deal has been struck between the state and federal government, to fund projects such as the construction of the Metronet, extensions to theKwinana Freeway and Roe Highway, and so on. This boost in infrastructure investment has come as welcome relief for Western Australia, as the construction boom they were experiencing was starting to wane. This will reinvigorate WA's economy, increase tendering opportunities, and provide much-needed improvements to their transportation systems. The deal will also generate 6000 new jobs for the state.
Overall, the allocation of additional funding for the construction industry, in the Federal Budget 2017, will be very beneficial. The benefits that it will provide will help boost the economy and ensure that Australia can keep up with the projected rise in population.
If you require labourers to assist with construction projects across Australia, contact us on the Workfast website or call 1300 824 403.