Civil Contractors Federation Report Provides a Blueprint for a Civil Infrastructure Led Economic Recovery
A new economic report commissioned and released by Civil Contractors Federation National (CCF National) today confirms additional funding is required to generate much needed economic and employment growth in the Australian economy as it continues its recovery from COVID-19.
The study, Rebuilding Australia, A Plan for a Civil Infrastructure Led Recovery, (click here) prepared by BIS Oxford Economics on behalf of CCF National also analyses the risks to an infrastructure-led recovery that require urgent attention by all levels of government.
“This new report provides evidence that civil construction is central to the economic recovery, with investment in infrastructure generating an economic return of 3:1. It finds that for every $1 million invested, a total of $2.95 million of output is contributed to the economy,” said Chris Melham, Chief Executive Officer of CCF National.
“Furthermore, 7.2 workers are employed for every $1 million invested. So, a $250 million investment in a road, rail, bridge, utilities or port project would generate approximately 1800 jobs. The report also highlights that boosting civil construction’s GDP contribution from 3.8% to 4.1% would generate 11,100 jobs, and boosting its GDP contribution to 4.5% would create 36,100 jobs.
“In light of these figures, CCF National is calling on the Federal Government to significantly boost funding to civil infrastructure in the 2021-2022 federal budget to boost business confidence, support investment and create jobs.
“Based on the findings of this report, CCF also encourages governments to use ‘debt-funding’ and to take advantage of historically low interest rates and invest these funds in productive infrastructure projects.
Rebuilding Australia, A Plan for a Civil Infrastructure Led Recovery proposes a number of remedies, including:
• improved planning and risk management
• streamlining and reforming the tendering process
• greater consideration of more collaborative procurement models
• more appropriate contractual risk allocation
• a greater focus on skills and training
“Action across these areas is critical if we are to harness the productive capacity of the civil infrastructure sector and maximise the economic benefit to the Australian economy, and CCF therefore looks forward to continuing its constructive dialogue with government at all levels to implement the findings of this report,” Melham said.
Click here to download report and infographic Rebuilding Australia – A Plan for a Civil Infrastructure Led Recovery
Click here to download the video Civil Construction – Leading Australia’s Economic Recovery