The short-term outlook for Tasmania’s engineering construction sector looks strong, as big future projects move through the pipeline.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The value of work started had increased for the past six months, according to analyst Deloitte Access Economics.
Deloitte said more than $1 billion worth of projects remained in planning stages across the state.
It said the biggest of those was the proposed $576 million replacement of the Bridgewater Bridge.
In its latest Investment Monitor report, Deloitte said value gains had been seen in most engineering construction sectors.
“ … a total of $2 billion worth of projects remain under construction, led by the $535 million Midland Hwy upgrade and the $300 million Cattle Hill Wind Farm, both of which are slated to wrap up in 2019,” it said.
It said the latest data showed a slight showdown in the value of engineering construction work completed.
That was led by falls in the value of public transport and telecommunications projects.
“There were gains in the private sector, but it accounts for only one third of engineering work across the state,” Deloitte said.
It said the value of building approvals for commercial construction had growth since early 2018, with notable gains in accommodation, health, offices and retail.
“This is also reflected in terms of project activity, with most of the large developments in the planning stages,” it said.
“The University of Tasmania is progressing plans to build a new $260 million campus in Launceston, while approvals have been granted for the university’s $400 million STEM facility in Hobart.
“All up, there are $2 billion worth of projects under construction, and a further $3 billion in the planning stages.”
Deloitte said a strong global economy and lower Australian dollar had helped Tasmania.
The investment figures were not so rosy nationally.
Deloitte said its Investment Monitor database contained details of 1300 Australian investment projects valued at $20 million or more, with a total recorded value of $706 billion.
“This represents a 0.9 per cent decrease from the previous quarter and places the value of the database at a nine-year low,” Deloitte said.
It said the national outlook for commercial construction was broadly positive, supported by low interest rates, elevated profits and robust underlying demand in most sectors.
However, businesses were delaying investments due to uncertainties including doubts over the economy’s future strength, the impact of disruptive technology, high levels of household debt and trade tensions.
.
