Jumpin' jackhammers
Don't normally deal in hyberbole on this blog, but gee whizz this header isn't too far off the truth.
When the latest engineering construction figures were released last month they showed a huge ramp up in work yet to be done in Victoria, as a volley of transport and infrastructure projects underway saw the engineering pipeline explode nearly $10 billion higher, to sit at by far the highest ever figure.
In a recent report on the end of the construction boom, I also noted that of the capital cities only Melbourne presently has the dynamics to sustain an elevated rate of apartment construction, supported by extraordinary population growth.
An unprecedented surge in attached dwelling approvals October and November 2017 had become commencements by the first quarter of 2018, as the number of dwellings under construction continued to rise statewide.
Commercial building work in the pipeline is booming, too, doubling in only the past couple of years to more than $8 billion.
Commercial building work in the pipeline is booming, too, doubling in only the past couple of years to more than $8 billion.
The net result is a wild and synchronised upswing in the total pipeline, with the best part of $38 billion of work yet to be done, also a near-doubling in only the past couple of years.
Nationally construction activity may be set to fall, but clearly this won't happen any time soon in Victoria.
In fact, looking at this chart Melbourne may even experience the opposite problem, being a constraint on capacity!
Residential construction in particular is known to have a strong multiplier effect, so it's quite possible that Melbourne will see its unemployment rate fall in a similar manner to Sydney.
In fact, looking at this chart Melbourne may even experience the opposite problem, being a constraint on capacity!
Residential construction in particular is known to have a strong multiplier effect, so it's quite possible that Melbourne will see its unemployment rate fall in a similar manner to Sydney.
