Western Australia’s state economy is predicted to slow to levels not seen since the turn of the 21st century. Read on to learn more about what’s causing the economic crisis, how it will affect the construction industry, and what might be done to help.
A lack of big building projects is one of the key problems facing the Western Australian economy. In the past, the state had the Gorgon gas plant, which injected $54 billion into the local economy, and the Perth City Link, worth $3 billion. Now there’s little of note on the building scene, and the State is looking for new opportunities as a result.
Those big building projects kept thousands of locals employed, and without the projects, effects for WA residents are evident. Experts predict the state’s unemployment levels will rise to 6.5 percent over the next 12 months, which puts it above the current national average.
Implications for the Construction Industry
According to a Deloitte Access Economics report, private spending on construction in Western Australia will decrease by more than 20 percent. Public construction works will also drop, which has grave implications for the construction industry. Without enough work on the agenda, construction firms will be forced to downsize and perhaps even dissolve while they wait for better times.