As Australia enters the vaccine roll-out stage of the COVID-19 pandemic, for many of our equipment finance customers, investment in infrastructure projects continues to be closely watched with the opportunities it represents keenly anticipated. So what's happening in the economy overall and what opportunities are available for your business? We do a quick whip around some of the key topics in the current conversation for you.
Infrastructure investment in general is a popular government lever to drive the economy. Why? Especially large scale projects have the potential to create work for many business and create many jobs during all phases of development and construction. Once completed, the objective of many projects is to create further ongoing jobs around operation of the project, such as a hospital, and/or deliver productivity and efficiency improvements to business and the community. Improvements which then flow-through to stimulate spending in other sectors. That’s a basic viewpoint.
Based on current economic data, the Australian economy is showing a recovery from COVID-19 beyond the expectations of both government and many analysts. On the back of promising GDP figures for the December 2020 quarter, unemployment continued its downward trajectory, dropping to 5.8% in February. While some sectors still face serious hardship and caution is being taken to see what happens after JobKeeper ends, so far the signs are promising
Priority Projects: Infrastructure Australia
To get some idea of what opportunities may lay ahead for your business, you might like to review the Infrastructure Priority List which was recently released by Infrastructure Australia. Infrastructure Australia is an independent body which provides advice to government and industry based on research on infrastructure requirements.
The 2021 priority list includes 44 projects with the list described as a roadmap for governments to consider as what is seen as needed in different areas. This list focuses on international competitiveness, new energy source; water security; regional projects to drive development and other aspects and digital services in health.
A notable point of the relevance of the annual list is that 10 of the projects identified on the 2020 priority list have already moved into the phase of construction. Some of the high priority projects in the 2021 list include Western Sydney new airport and connecting motorway, M80 ring road upgrade in Melbourne and the Brisbane metro network.
Support for the list has been acknowledged by the Civil Contractors Federation in South Australia with a number of projects in the state on the list. To see the full list and what opportunities may be available to you.
Related to infrastructure in border areas, is news that legislation for the AMR Scheme (Automated Mutual Recognition) has been introduced to parliament in NSW. This was the ‘tradies without borders’ plan that was approved by National Cabinet in December. It will cut the hassles and red tape for tradespeople that are looking to work in other states but are only licensed in one jurisdiction. The aim of the scheme is to cut red tape and reduce costs of licensing.
The scheme is due to start at the start of July and Dominic Perrottet, the NSW Treasurer, said this would be a major advancement for trades working across territories and states.
NSW Infrastructure in Focus: Randwick Campus
One of the big infrastructure projects currently underway in NSW topped out in mid-March with much fanfare. The Randwick Campus Redevelopment in the vicinity of the current Prince of Wales Hospital (POS), incorporates a range of buildings which will become a world-class health and innovation precinct. The topping out celebrated the $780m POW Hospital Integrated Acute Services Building reaching its highest construction point.
This is a multi-government and multi-agency project with the Acute Services Building due to open in 2022 and other buildings and projects over coming years into 2025. This is a $1.5 billion project with many opportunities for businesses.
Tendering Finance Process
NSW Government is asking existing suppliers and those who would like to be a supplier, to submit their input for a review of the state’s procurement process.
Tendering for government infrastructure projects can be a complex and costly process. Some contracts can be quite easily quoted and submitted using the in-house resources of a business. While other submissions may require a business to engage professional consultants.
If you require cash flow assistance to fund the cost of tendering for large projects, contact us to discuss what financing options we can provide. In addition to providing cheap equipment finance for machinery acquisitions, Jade Equipment Finance also offers a range of business loans and cash flow support options.
Finance for Your Investments
In order to take advantage of the business opportunities presented by infrastructure projects, you may be looking at making your own investment in new equipment. Having the appropriate, high quality machinery in your fleet can be critical to being awarded tenders and to completing the work productively and profitably.
We specialise in sourcing the cost-effective equipment finance at the cheapest interest rates to ensure our customers optimises productivity and profitability prospects.
To talk equipment finance to meet the requirements of your upcoming projects, Contact Jade Equipment Finance on 1300 000 003
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.