Threats to Australia’s investment pipeline, the outlook for residential construction and the broader challenges facing the construction industry have been discussed at the Construction Materials Industry Conference (CMIC) held in Melbourne recently.
Hosted by industry groups Cement Concrete & Aggregates Australia and the Institute of Quarrying Australia, CMIC12 brought together over 600 local and overseas delegates.
This year’s conference theme was Essential Industry for Australia’s Future, with speakers discussing the opportunities and threats to growth – both for the industry itself and the broader economy.
CCAA Chairman and Chief Executive of Hanson Australia, Kevin Gluskie, set the scene in his keynote address by focusing on four key industry challenges – resources depletion, sustainability, community engagement and the aging workforce.
Mr Gluskie, the, said the industry needed to recognise that resources were finite ‘...and our future options are more expensive by an order of magnitude’.
Business Council of Australia (BCA) Chief Executive, Jennifer Westacott, told delegates that high project costs and workplace productivity issues were putting the future investment pipeline – estimated at as high as $900 billion – at risk.
She called for action to give states greater authority to assess and approve projects under Commonwealth environmental legislation, for amendments to the Fair Work Act to include employer-only agreements on greenfield projects, and comprehensive tax reform including a lower company tax rate over time.
Bank of America Merrill Lynch Australia Chief Economist, Saul Eslake, painted a mixed outlook for the Australian residential property market.
He told delegates he did not anticipate a US-style housing market collapse, pointing to Australia’s relatively low housing stock levels and the recent fall in new dwelling completions, as well as the distribution and structure of Australian household debt.
However he suggested the shortage of housing in Australia would persist unless governments changed key policy setting.
Other speakers at this year’s CMIC included VicRoads Chief Executive, Gary Liddle, who spoke about the need to unlock productivity on our road systems; and Australian Industry Group Chief Executive, Innes Willox, on the measures he believes are necessary to kick-start the construction sector.
