The boom in public infrastructure projects, particularly along the eastern seaboard of Australia, and continuing strong demand for high rise residential buildings, have contributed to a record production year for Australia’s concrete, cement and aggregates industry, new figures reveal.
The industry’s peak representative body, Cement Concrete and Aggregates Australia (CCAA), calculate that more than 30 million cubic meters of pre-mixed concrete were produced across Australia in the 2017 calendar year. This compares to 27 million cubic metres in 2015, climbing again from 28.5 million cubic metres in 2016, according to the figures, which were commissioned from Macromonitor.
The association also confirms that:
- More than 30,000 people are employed directly by the industry, with another 80,000 estimated to be employed in work related to the industry.
- The industry contributes over $15 billion to the national economy every year.
Ken Slattery, chief executive of the CCAA, said major infrastructure projects, especially in NSW and Victoria, were driving unprecedented growth in the sector.
“The boom in infrastructure projects such as WestConnex and NorthConnex in Sydney and the West Gate Tunnel in Melbourne, is good news for the heavy construction materials industry and for the more than 110,000 Australians who are employed directly or indirectly in the sector,” Slattery said.
“But it is also great news for the Australian economy, with the industry contributing more than $15 billion to the national accounts.”
Slattery said a recent report by consulting firm Deloitte had concluded that infrastructure projects worth at least $324 billion were in the pipeline, an increase of almost $50 billion over the past two years.
“The building of the new Western Sydney airport at Badgery’s Creek alone was expected to further lift demand for concrete and related products by at least another one per cent over the next five years,” Slattery added.
“The Melbourne Metro Rail Project, which is currently underway, would also result in demand for concrete increasing by another two per cent.
“Demand for concrete is increasing rapidly at a time when more and more planners realise what architects and builders have known for a long time: no other material is as versatile, sustainable and cost effective.
“Whether we are talking about a building as emblematic as the MONA in Hobart or pre-cast concrete single storey homes in our suburbs, concrete is also the safest of all building materials – it is non-combustible, does not emit toxic fumes, does not produce smoke, or drip molten particles when exposed to fire.”
According to the figures released by CCAA, NSW construction projects are expected to consume an average of 9.5 million cubic metres of pre-mixed concrete a year between 2018 and 2022, with Victoria closely behind at about 8 million cubic metres, and Queensland predicted to grow further and approach 7.2 million cubic metres a year.