A recent report by Timetric reveals that the construction industry in Australia is expected to stagnate with a projected compound annual growth rate (CAGR) of -1.55% from this year to 2020. Investments in infrastructure projects including road are, however, expected to offset this trend in the latter half of the forecast period leading to a positive annual growth.

Titled ‘Construction in Australia – Key Trends and Opportunities by State and Territory to 2020′, the report details how the country’s construction sector has suffered owing to weakness in the industrial sector including mining-related construction activities. The government has initiated programmes in other sectors to curtail the effect of a slowdown in mining, and oil and gas industries.

Multiple infrastructure development programmes including Investment Road and Rail Program, the Black Spot Program, the Roads to Recovery Program and the National Highway Upgrade Program have been launched to promote growth in the construction industry.

"The Victorian government has initiated the upgrade project as part of its CityLink Tulla Widening project."

Victoria’s department of transport, planning and local infrastructure (DTPLI) and Public Transport Victoria are taking steps to ease the road traffic congestion by developing and improving the road network. The CityLink Tullamarine corridor connecting the West Gate Freeway to Melbourne Airport is currently undergoing an A$1.3bn ($979.8m) rehabilitation. The Victorian government has initiated the upgrade project as part of its CityLink Tulla Widening project.

According to the Timetric report, Australia’s construction industry will be able to survive the industrial slowdown, owing to investments in infrastructure, commercial and institutional construction markets. Impetus is also being given to development in education and healthcare sectors, housing, and retail sales with an increase in government spending in these sectors.