Construction activity rose in the June quarter as labour and material
Australia’s economy grew 0.4% in the June quarter and 2.1% over the year, while new Australian Bureau of Statistics data showed construction activity also increased.
Construction gross value added rose 0.4% during the quarter. Dwelling construction lifted on the back of the existing pipeline of work and new project commencements.
Engineering construction also increased, driven by renewable energy and mining projects. The ABS also reported more work on high-value heavy and civil engineering projects.
At the same time, the ABS reported continuing cost pressures across the sector. Construction prices kept rising because firms were competing for limited labour and materials.
Cement Concrete & Aggregates Australia said the figures strengthen the case for securing long-term access to locally produced construction materials as Australia pushes ahead with new homes, infrastructure and major projects.
CCAA chief executive Michael Kilgariff said, “Whether Australia is building new homes, roads, railways, renewable energy projects or other critical infrastructure, those projects all depend on a reliable and competitive supply of cement, concrete and aggregates.”
Kilgariff calls for local quarry supply
Kilgariff argued that governments need to protect strategically important construction material resources close to future demand. He singled out aggregates and concrete as priorities because shorter transport distances can cut costs and improve supply resilience.
He also called for planning and regulatory systems to treat construction materials as essential enabling resources. In CCAA’s view, faster and more efficient approvals would help keep projects moving and hold down construction costs.
The industry group also wants improved freight networks. It linked better transport links with lower costs for moving heavy materials to building sites and major works.
CCAA warned that governments cannot separate housing policy and infrastructure policy from construction materials policy. The group said immediate planning is needed to secure local material supply while Australia pursues housing targets, major infrastructure programs and the energy transition at the same time.
The statement from Cement Concrete & Aggregates Australia did not set out any specific policy change, project list or timeline for those planning reforms.
