The 2024 state budgets across Australia offer a mixed but largely positive outlook for the precast concrete industry, a critical sector within the broader construction landscape. The budgets reveal a mix of investments in infrastructure, housing and environmental initiatives that present significant opportunities for growth and innovation in this sector.

 

Infrastructure investment: A boost for demand

State budgets from Queensland, Victoria, New South Wales (NSW), South Australia (SA) and Western Australia WA), highlight substantial allocations for infrastructure projects.

As Queensland’s Big Build continues, its 2024-25 budget stands out with a record $107.262 billion infrastructure investment over four years, focusing on transport, health, and energy projects. Notable projects include the Sunshine Coast Rail Line, Coomera Connector, and the Logan and Gold Coast Faster Rail, all of which demand significant precast concrete due to its durability and efficiency.

Similarly, Victoria’s budget continues to support large-scale projects that will transform the state’s transport network, as part of its own Big Build. These projects are critical for the precast concrete industry, providing a steady demand for high-quality, durable precast elements that can be efficiently produced off-site and assembled quickly on-site, minimising disruption and ensuring quality​.

NSW also showcases a significant infrastructure commitment with a $119.4 billion Essential Infrastructure Program investment over four years, focusing on transport, health, housing and education infrastructure. Key projects include the Westmead Education Campus, a new Bankstown Hospital and major upgrades to Western Sydney’s road and light rail networks. These large-scale project initiatives will drive and sustain the demand for precast concrete components.

With a total infrastructure spend in SA over four years of $25.6 billion, major projects like the North-South Corridor – River Torrens to Darlington project and a new Womens’ and Childrens’ Hospital, the demand for precast is expected to be pushed to its limits.

WA is similarly focusing on infrastructure spending that will flow on to the precast industry as it commits to a $12.1 billion infrastructure spend, of which $11.8 billion will go toward new transport infrastructure.

 

Housing and urban development: Expanding opportunities

Housing remains a central theme in the 2024 budgets, with a common emphasis on investment in affordable housing​​. These initiatives are crucial as they aim to address housing shortages and stimulate the construction sector.

Precast concrete should fare well from this focus, being well-suited for high volume housing projects due to its cost-effectiveness, speed of construction and sustainability benefits. The push for affordable housing in large quantities aligns well with the cost-effective nature of precast solutions, making them an attractive option for developers and government. Its ability to be quickly assembled on site makes it ideal for large scale residential projects, helping to meet tight deadlines and cost constraints.

For housing specifically, precast delivers homes that are exceptionally durable, termite, fire and flood proof to ensure long-term structural integrity, while requiring minimal ongoing maintenance. When well designed, its high thermal mass helps maintain consistent indoor temperatures, significantly minimising the need for artificial heating and cooling. This thermal efficiency not only enhances occupant comfort but also leads to substantial energy savings and lower utility bills, making it an environmentally and economically sustainable choice for residential construction

(Projects like WA’s Bindoon Bypass – part of the Great Northern Highway – saw one of National Precast’s Master Precasters, MJB Industries, manufacturing 240 precast box culverts and 102 pipes for new bridge and causeway structures that traverse the Brockman River and its tributaries (including Udumung Brook) and Lennard Brook – pictured above and top)

 

Environmental and sustainability initiatives: Driving innovation

State budgets also highlight significant investment in sustainability and environmental initiatives. Western Australia’s budget includes measures for reducing environmental impact using environmental impact assessments and promoting renewable energy projects and pollutant prevention measures.

Precast concrete supports these goals through its ability to incorporate recycled and waste materials like flyash and slag, reduce on site waste, recycle waste in the factory and enhance energy efficiency in buildings. Innovations such as hollowcore slabs not only decrease material usage and CO2 emissions, but they also have an ability to use the concrete’s high thermal mass for energy-efficient heating and cooling.

As states enforce stricter environmental regulations and promote sustainable building practices, the industry will likely see increased adoption of advanced, eco-friendly precast technologies.

 

Skills Development and workforce enhancement: Ensuring readiness

Several state budgets, including those of Victoria and South Australia, emphasise skills development and workforce training​​.

This focus is critical for the precast concrete industry, which lacks any formal training programmes, yet relies on skilled labour for both manufacturing and on-site assembly. Investment in new training initiatives and apprenticeships is well overdue.

As the industry continues to grow, it will need a ready pool of skilled workers, capable of leveraging new technologies and adhering to best practices. Skilled workers are vital for maintaining the high standards of quality and efficiency that are critical in precast production and installation.

 

The impact of economic stability and market confidence

Economic stability and growth, as priorities in the state budgets, foster market confidence and encourage investment in construction projects. Economic forecasts in state budgets also play a role in shaping industry dynamics.

While Queensland’s economic growth is projected to strengthen to 3% in 2024-25 – supported by public infrastructure investment – and South Australia’s economic overview notes strong employment growth and economic performance, challenges such as rising interest rates and inflation could impact project financing and overall construction activity.

NSW is also committed to returning to a sustainable operating position, and stabilising – and then maintaining – a sustainable debt position, with a predicted deficit of $3.6 billion in 2024-25. This number is expected to reduce across forward estimates. That downward trend is likely to enhance market confidence and provide a stable environment for continued growth of the precast concrete industry.

Decision-makers and developers must remain adaptable, leveraging the benefits of precast solutions to offer cost-effective and timely project completions. That will flow on to sustain the precast concrete industry’s growth, by ensuring a continuous pipeline of projects and demand for precast elements.

 

Conclusion

The 2024 state budgets across Australia present a mixed yet largely positive outlook for the precast concrete industry. Significant infrastructure investments, a focus on housing development, and strong environmental initiatives create substantial opportunities for growth and innovation.

The industry must, however, navigate economic challenges and pursue the development of state-supported skills programs, to sustain its momentum and effectively meet rising demands.

By aligning with state priorities and embracing sustainability and efficiency, the precast concrete industry can continue to thrive, contributing to Australia’s construction landscape and broader economic goals.

 

Sarah Bachmann, CEO, National Precast Concrete Association Australia

 

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