Australia Infrastructure Report

Providing expert analysis, independent forecasts and competitive intelligence on the Infrastructure industry.

Report includes: BMI Industry View, Industry SWOT Analysis, BMI Industry Forecast, BMI's Infrastructure Risk Reward Index, Market Overview and Company Profiles.

Why you should buy this report

  • Gain independent insight into the outlook for the infrastructure industry through BMI's 10 year forecasts
  • Understand the market through analysis of projects , investment plans and key players
  • Understand the threats to your operations and investments and protect your company against future risks
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Australia Infrastructure Report
Product Price
$1,295.00

BMI View: Australia's construction industry is poised for an uptick in growth as government supported infrastructure development starts to overcome headwinds presented by a decline in capital expenditure in the mining sector. The Liberal party's plans hinge on promoting additional private sector investment through a shift to a user-pays system for transport infrastructure; however, we not strong downside risk to our positive outlook stemming from political uncertainty in the run-up to federal elections in July.

Latest Updates

  • We maintain our forecasts for an acceleration of growth for the Australia construction industry from 2016, with real growth expected to reach 1.8% in real terms (up from 0.03% in 2015).

  • This will be driven by a surge in the transport infrastructure industry, with the near-term forecast supported by groundbreakings of a number of high-value road projects and a large project pipeline (valued at AUD184bn).

  • Additionally, the positive outlook for infrastructure development is supported by policy announcements from the Coalition Government, especially the long list of priority projects in the Australian Infrastructure Plan released in February.

  • Under the Liberal Party's plans, financing will come in large part from the private sector, through asset recycling and the use of PPPs as the country shifts to a user-pays model for transport infrastructure development.

  • However, we note strong downside risks to our positive outlook stemming from uncertainty over policy continuity, especially as we draw closer to a federal election in July.

  • Capital expenditure cuts in the mining and extractive sector will continue to weigh on industrial and overall construction growth. However, this downward pressure will begin to recede as commodity prices bottom in 2016.

Infrastructure - Construction Industry Forecasts (Australia 2016-2022)
2016f 2017f 2018f 2019f 2020f 2021f 2022f
f = BMI forecast. Source: National sources, BMI
Construction Industry Value, Real Growth, % y-o-y 1.80 1.94 1.99 3.42 3.02 3.35 3.57
Construction Industry Value, % of GDP 8.4 8.4 8.3 8.4 8.5 8.5 8.6
Construction industry value, AUDbn 140.48 145.32 151.48 160.60 169.78 180.06 191.35

Risk/Reward Index

  • Australia has risen to the top position in the Asia Pacific region on our Infrastructure RRI in Q216, with an overall score of 69.1 out of 100.

  • The Industry Rewards score improved drastically, in line with an improved outlook for construction industry growth. Australia now receives a score of 52.5 for this indicator, up from 45.0.

  • Australia's performance remains strong in terms of Risks, supported by a transparent operating environment and strong financing availability.

Infrastructure Risk Reward Index (Australia)
Risk/Reward Index Rewards Industry Rewards Country Rewards Risks Industry Risks Country Risks
BMI
69.3 64.3 52.5 86.1 80.9 90.0 74.8
BMI Industry View
7
Table: Infrastructure - Construction Industry Forecasts (Australia 2016-2022)
7
Table: Infrastructure Risk Reward Index (Australia 2016)
8
SWOT
9
Infrastructure SWOT
9
Industry Forecast
11
Construction And Infrastructure Forecast Scenario
11
Latest Updates
11
Table: Construction And Infrastructure Industry Data (Australia 2015-2025)
11
Structural Trends
11
Transport Infrastructure - Outlook And Overview
16
Latest Updates
16
Table: Transport Infrastructure Industry Data (Australia 2015-2025)
16
Structural Trends
17
Table: Competitiveness Of Australia's Infrastructure
17
Table: Liberal-National Coalition Proposed Federal Funding Plans For Transport Infrastructure, By Year, By State, AUDmn
18
Table: Australia - Federal Expenditure On Infrastructure, AUDbn
21
Table: Transport Projects
31
Energy And Utilities Infrastructure - Outlook And Overview
32
Latest Updates
32
Table: Energy And Utilities Infrastructure Data (Australia 2015-2025)
32
Structural Trends
32
Table: Energy & Utilities Projects
41
Residential/Non-Residential Building - Outlook And Overview
42
Latest Updates
42
Table: Residential and Non-Residential Building Industry Data (Australia 2015-2025)
42
Structural Trends
42
Table: Construction and Social Infrastructure Projects
50
Industry Risk Reward Ratings
51
Australia - Infrastructure Risk/Reward Index
51
Rewards
51
Risks
51
APAC Infrastructure RRI: Affirming A Benign 2016 Outlook
52
Table: Asia Risk/Reward Index
59
Market Overview
60
Competitive Landscape
60
Table: EQS Industry Data
60
Company Profile
65
Leighton Holdings
65
WorleyParsons
70
Methodology
75
Industry Forecast Methodology
75
Sector-Specific Methodology
76
Risk/Reward Index Methodology
80
Sector-Specific Methodology
81
Table: Infrastructure Risk/Reward Index Indicators
81
Table: Weighting Of Indicators
82

The Australia Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Australia Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Australian infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Australia to test other views - a key input for successful budgetary and planning in the Australian infrastructure market.
  • Target business opportunities and risks in the Australian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Australia.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:

Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).

Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.

The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).

BMI’s Infrastructure Risk Reward Index

BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and  demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.