Infrastructure Projects Demand Material Strategy
On 5th May, the Victorian Government unveiled its 2026-27 Budget, detailing a $181 billion capital works program. Emphasizing the necessity for a coordinated Heavy Construction Materials Plan, it aims to sustain infrastructure projects across the state.
Significant contributions come from the cement, concrete, and aggregates industry, adding $3.17 billion to Victoria’s Gross State Product and supporting over 15,600 jobs. This underscores their vital role in the economic framework and construction sector.
Cement Concrete & Aggregates Australia (CCAA) highlights the importance of timely and affordable access to these materials. Such access is crucial for managing project costs and meeting delivery schedules, especially with Victoria’s net debt projected to reach $199.3 billion by 2029-30.
Call for a Coordinated Approach
Michael Kilgariff, CCAA Chief Executive Officer, stated, “Ensuring these materials are available where and when they are needed is fundamental to keeping projects moving and delivering infrastructure on time.”
He further pointed out the necessity of a comprehensive whole-of-government Heavy Construction Materials Plan. Aiming to ensure that Victoria has the necessary resources, approvals, and planning settings is crucial to meet future demand.
According to Mr. Kilgariff, the plan’s objectives include securing access to quarry resources near project sites, streamlining approval processes, and aligning planning systems to support long-term supply needs.
Preparedness within the industry to support the state’s infrastructure and housing priorities remains high. Delivering projects on time, within budget, and at the scale required for Victoria’s growth is the focus.
Investments in transport, housing, renewable energy, and social infrastructure highlight the strategy’s crucial role in maintaining the momentum of current projects. As a result, strong fiscal discipline is necessary to manage these investments efficiently.
CCAA’s 2026 Victorian Election Policy Priorities highlight the importance of securing a sustainable, reliable, and locally available supply of construction materials. This is essential for supporting infrastructure, housing, and energy projects across the state.
The projected infrastructure pipeline provides important demand certainty for the industry. It supports jobs, investment, and regional supply chains throughout Victoria. Recent analysis by Oxford Economics Australia shows the industry’s critical role, contributing significantly to economic growth and construction activity.
