Why the Australian Economy Needs the Construction Industry Now More Than Ever
The corona virus caused a pandemic that made people avoid other people from touching each other. It’s quite unusual in recent years, and it has forced all of us to get used to not being around other people. While the virus has definitely changed the way we all have been living our lives, God willingly, everything will be back to the way it was before. However, it’s crucial that the government will make immediate plans for the recovery of the economy. And looks like the best way to do that is through the construction and development industry.
Publicly funded projects are seen to be the main tool that will bring the nation to fast recovery from the effects of the pandemic. Big projects such as roads, power, and telecommunications projects would bring about thousands of jobs for workers all over the country. In order to speed up the economic recovery, jobs must be prioritized. This will cause the nation to have quickly rebalance the risk-reward profile as per the Australian Financial Review.
Many large infrastructure projects faced some trouble because of the costs and new policies. State governments have made sure that the construction industry is ongoing because it is essential to the recovery. In fact, Premier Andrews and Treasurer Pallas announced on April 22 that the state of Victoria will lead the nation with the construction and development program – which will be the road to the recovery in the state. However, safety precautions must still be adhered to like hand-washing and social distancing.
Investing in infrastructure around the country should be supported because of its position in the economy. The construction industry employs over $1 million individuals.
So what else makes the building and construction industry such an important part of the economy’s recovery?
The stock market crashed due to the effects of the pandemic. Experts and developers could see that for the economy to recover, Australia should start with fixing one of the biggest problems they have which are the housing system. Building more residential properties would mean more housing solutions for homeless people. Like we have mentioned, the construction industry generates more jobs than other industries – in fact, the residential industry brought in about $105 million for the economy in 2018. Its strong track record of sustaining the growth and stability of the economy.
“Whether the new homes are in the form of affordable housing, or green housing, or public housing, or simply more housing, urgent action is needed to bring down housing prices and allow new home buyers back into the market…” says Urban Taskforce chief executive Tom Forrest.
Simply put, the construction sector is such a vital part of the economy’s recovery. The investment must be placed where more jobs are created and the economy’s growth is stimulated.