Infrastructure projects have been crucial to the Australian economy throughout the coronavirus pandemic with state, federal and local governments investing significantly in a wide range of works. While some NSW projects were shut down for a period during that state’s lockdown, multiple projects continue to roll out at various stages across the country. Road works and rail projects have tended to dominate the schedule with a particular focus on regional roads by the Federal Government.
These projects represent significant work opportunities for a vast range of business operators. Both large and small operators in earthmoving, civil works, road building, general trades, materials suppliers and transporters and many, many others can take advantage of the work on offer – if they are well-placed to do so. Many are long-term which can provide a degree of certainty around workflow in coming months and years. Something that can be highly valued in the current economic climate.
While the opportunities are there, operators need to be well set up in order to win the highly competitive tenders and contracts. That presents plenty of reasons for operators to review their fleet of machinery and consider upgrades. Jade Equipment Finance can provide support and assistance to businesses seeking to invest in new equipment with cost-effective equipment finance for infrastructure project work.
Projects Update
While regional roads have been a big focus of the Federal Government’s infrastructure program, a leading infrastructure research and advisory group has released reports which may lead to a change in thinking. The group’s statement sets out why the approach to infrastructure projects may need to be modified to accommodate changes in the way Australians live caused by the pandemic.
For example, the exodus from cities as many people move to regional areas is a key point raised. While the ideas and roadmap put forward by IA may come to fruition in future years, there are many key infrastructure projects proceeding right know, in a COVID-safe way that may represent business opportunities for your operation.
August media releases from the Assistant Minister for Road Safety and Freight Transport, Scott Buchholz covers a number of funding announcements which may be worth consideration.
The funding announcements include:
- Nine new sites in the Northern Territory to receive attention under the Black Spot Program.
- Joint funding with the NSW Government for 141 critical road upgrade projects in both regional and metro areas which are described as life-saving and designated for completion in 2021/22.
- Another nearly 50 projects in Queensland to receive fast-tracking over the next 12 months with a $174m package.
- Victoria and Federal funding for an additional 29 projects of life-saving regional and rural road works.
- Fast-tracking of 570 kilometres of works in South Australia.
- Western Australia to receive fast-tracking of 58 road projects as a result of a joint state-federal funding program.
These are just a few of many ongoing and new infrastructure projects which can present lucrative and long-term work prospects for contractors.
Support for Businesses Looking to Upgrade
As lenders to a wide range of industries we fully appreciate the value that these opportunities can present to our customers. But is your operation ready to take advantage of what’s on offer from infrastructure projects in your area?
To be granted contracts for work on major projects, businesses usually have to enter a competitive tendering or application process. This may be conducted through the government or statutory body overseeing the project or through the main contractor.
To be successful, operators need to present a winning bid and that may include having a top shelf fleet of machinery and equipment ready to work. If you’re fleet is not up the scratch, not ready to take on a gruelling, long-term but rewarding project, it could be time to consider new acquisitions.
At Jade Equipment Finance we support our customers by working hard to ensure the equipment required is acquired with the cheapest interest rate finance possible. It’s one thing to be awarded a lucrative contract, it’s another thing to ensure the outcome is profitable. Productivity can be key to a successful financial outcome from these contracts and cheap finance can be critical to achieving productivity targets.
The timing of the increase in government infrastructure spending coincides with a number of other issues which further increase the appeal of buying new equipment – historic low interest rates and accelerated asset depreciation measures – Instant Asset Write-Off and temporary full expensing.
We can make equipment acquisitions both cost-effective and affordable propositions with our cheap interest rate finance and our time-saving finance sourcing and structuring service. To get a rough idea of what monthly repayments may be on the equipment you need, refer to our Interest Rate Comparison Calculator.
This calculator lists the current rates we are achieving across our portfolio of loan products which include Chattel Mortgage, Rent to Own, Leasing and Commercial Hire Purchase. This can be a great tool to assist buyers comparing different makes and models as well as for comparing the different finance products also.
While many lenders either exclude or at minimum make finance applications difficult for new businesses, we provide a specialised service to assist these operators with Low Docs and No Docs Equipment Finance options.
While infrastructure projects continue to be an important contributor to the national economy they also represents a very significant source of work and income for many business operators. Offering plenty of reasons to review and re-assess your equipment and consider upgrading.
Contact Jade Equipment Finance on 1300 000 003 to discuss your equipment finance requirements
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.
