Australia Infrastructure Report

Published 19 February 2015

  • 128 pages
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$1,295.00
Australia Infrastructure Report

BMI View: Australia's construction sector will slow in 2015, with growth being weighed down by a slowdown in the mining sector, a lack of competitiveness and political headwinds . Growth however, remains at a respectable rate, supported by the housing sector - fuelled by record-low interest rates - and the government's emphasis on developing the country's infrastructure.

Key Trends And Developments

  • We remain positive over growth for the sector in 2015, although our 3.0% growth forecast for the construction sector is still lower than the 10-year historical average of 4.4% (between 2004 and 2013).

  • Our slightly tempered outlook is underpinned by a slowdown in Australia's mining sector, which has a negative impact from a slowdown in China, resulting in capital expenditure cuts by major Australian miners. A lack of competitiveness in Australia's engineering construction projects due to costs and an unfavourable foreign exchange environment will also deter foreign investment.

  • The state elections have also cast doubt on the federal government's efforts at privatising various public assets, with the Labor party - being very much against the asset sale programme - now having more political clout in states such as Queensland and Victoria.

  • Longer-term growth drivers will remain and we believe the housing market will prop up construction activity. This is also fuelled by record-low interest rates, with the Reserve Bank of Australia cutting rates by 25 basis points to 2.25% in February 2015.

  • Despite greater political risks, we still expect a heavy emphasis on developing the country's infrastructure. The sector's growth will also be supported by a strong project pipeline.

  • Beyond 2015, we expect a key growth area to be in road construction, as supported by the government's push for road works through the AUD40bn (USD31.1bn) road infrastructure package. This is reflected in our forecasts, with the segment accounting for more than 56% of the transport...

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Table of Contents

BMI Industry View
7
SWOT
9
Infrastructure SWOT
9
Industry Forecast
11
Construction And Infrastructure Forecast Scenario
11
Table: Construction And Infrastructure Industry Data (Australia 2012-2017)
11
Table: Construction And Infrastructure Industry Data (Australia 2018-2023)
12
Table: Australia - Federal Expenditure On Infrastructure, AUDbn
19
Transport Infrastructure - Outlook And Overview
25
Table: Transport Infrastructure Industry Data (Australia 2012-2017)
25
Table: Transport Infrastructure Industry Data (Australia 2018-2023)
26
Table: Competitiveness Of Australia's Infrastructure
28
Table: Liberal-National Coalition Proposed Federal Funding Plans For Transport Infrastructure, By Year, By State, AUDmn
29
Table: Australia - Federal Expenditure On Infrastructure, AUDbn
32
Major Projects Table - Transport
47
Table: Major Projects Table - Transport
47
Energy And Utilities Infrastructure - Outlook And Overview
58
Table: Energy And Utilities Infrastructure Data (Australia 2012-2017)
58
Table: Energy And Utilities Infrastructure Data (Australia 2018-2023)
59
Major Projects - Energy & Utilities
68
Table: Major Projects - Energy & Utilities
68
Residential/Non-Residential Building - Outlook And Overview
75
Table: Residential and Non-Residential Building Industry Data (Australia 2012-2017)
75
Table: Residential and Non-Residential Building Industry Data (Australia 2018-2023)
75
Major Projects Table - Residential/Non-Residential Construction
85
Table: Major Projects - Residential/Non-Residential Construction and Social Infrastructure
85
Industry Risk Reward Ratings
89
Australia - Infrastructure Risk/Reward Index
89
Rewards
89
Risks
89
Asia Pacific Infrastructure Index
90
Developed Markets: Favoured
91
Giants Of Asia: Rewards Sizeable, Risks Sizeable
93
South East Asia: Environment Deteriorating Slightly
94
Table: Asia Pacific Infrastructure Risk Reward Index
96
Market Overview
97
Competitive Landscape
97
Table: EQS Industry Data
97
Company Profile
101
Leighton Holdings
101
WorleyParsons
110
Global Infrastructure Overview
116
Global Industry Overview
116
Table: Construction Industry Value, Real Terms, % Change
117
Table: BMI's Top 5 Markets
121
Methodology
123
Industry Forecast Methodology
123
Sector-Specific Methodology
124
Risk/Reward Index Methodology
128
Sector-Specific Methodology
129
Table: Infrastructure Risk/Reward Index Indicators
129
Table: Weighting Of Indicators
130

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.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc