The entire construction industry within the borders of Victoria, Australia is in a single word is large and is still growing and as present contributes more than $21 billion to the Victorian economy. The industry which revolves around the construction of buildings, bridges, tunnels and other structures not excluding renovations, or alterations, maintenance, repairs, demolition and even reconstruction of existing structures that is managed by the fourth largest Victorian workforce of an estimated 300,000 direct workers.
This means that there are ‘indirect’ employment associated with the industry that has yet to be accounted for, this includes those who work for logistics companies that support the construction industry, heavy machine rental companies in major cities that provide machinery such as excavators for hire in Melbourne, R & D and consulting companies that provide consulting and solutions for blasting, test drilling, boring and land preparation activities.
The current break down of employment with regards to direct association with the construction industry of Victoria that accounts for 9 % of the total Victorian workforce consists of an approximate 11 % of female workers and 89 % males with slightly more than 24 % aged over 50. The annual average earnings of the workforce hovers at about $85,000 which is higher when compared to the Australian average which hovers at $69,000.
Although most of the major infrastructure projects in major cities such as Melbourne are held by large construction companies, the fact is that these large companies are dependent on more than a dozen small to medium enterprises (SMEs) as they have the capacity to support specific components of large scale projects. For instance transportation companies often manage logistics of moving material and equipment between project sites based on the terms of the sub-contracts that these SMEs are attached to.
Similarly, construction equipment rental companies that own fleets of cranes, skid steers, cement mixers, dumpers, trucks and excavators and offer them for hire on a contractual basis manage all issues associated with the machines that are offered for hire. The transportation, maintenance, replacements, hydraulic attachment requirements are all managed by these companies which do not only reduce the cost of large projects, but also ensure that projects run smoothly.
The is no doubt that the construction industry is critical towards the economic prosperity of Victoria in numerous ways as the industry does not merely only provide employment, but it also dictates the future of Victoria in terms of what the state has to offer foreign investors and visitors that visit the state due to the direct implications of projects such as the redevelopment of the Arts Precinct in Melbourne which is expected to attract millions of visitors annually in the near future.
These projects that have been kick-started after the devastating impact of the COVID 19 pandemic that brought the construction industry down to its knees have lauded by not only the industry players but also by Victorians as the ripple effect of such construction projects eventually benefit other industries as well.