Plant, materials and equipment will also come under pressure
Materials demand accounts for the second largest proportion of expenditure in the pipeline over the next five years. Demand for materials is projected to grow for three consecutive years, representing annual average growth of just over 30 per cent per annum between 2021 and 2023.
Demand for quarried material and cement are likely to produce the most significant challenges due to their reliance on local supply chains. Steel, bitumen and electrical control equipment are likely to be exposed to international demand and supply chain pressures.
The increasing and significant concentration of mega-projects, transport and rail investment drives unprecedented demand for materials. This includes an average annual growth rate for rock/bluestone approaching 60 per cent over the next three years. Demand for rail track will grow by 250 per cent over the three-year period.