Sydney is predicted to overtake central Queensland and the Pilbara in Western Australia as the next construction hotspot, according to economic forecaster BIS Shrapnel.
The new independent report says NSW is heading into a period of sustained growth, in stark contrast to the other states and territories.
BIS says the upswing in non-resource engineering construction work in Sydney is the leading factor.
Projects including the $9 billion North West Rail Link, the $2.8 billion M1-M2 Link, the $1.6 billion Sydney Light Rail, the $3.6 billion first stage of the WestConnex road project and upgrades on the Pacific Highway are construction project all boosting Sydney.
“We are getting on with the job of building infrastructure for the future for NSW and it’s delivering a boost to jobs, growing the economy and helping make the daily commute easier,” NSW Premier Barry O’Farrell said.
BIS reports that resources-related engineering construction is projected to fall 42 per cent over the next five years, with oil and gas construction alone falling by more than 50 per cent.
The former engineering boom states of Queensland and Western Australia will be hardest hit, the report says.
“NSW was the sleeping giant through the latter half of the 2000s, but has seen an 80 per cent increase in engineering construction work over the past few years, led by coal mining and coal ports, and catch up investments in roads, railways and electricity,” said Adrian Hart, senior manager for BIS Shrapnel’s infrastructure and mining unit.