As a key stakeholder in the Civil Construction industry, I would like to share with you the results of a nationwide survey recently undertaken by the Civil Contractors Federation (CCF) in assessing the impact COVID-19 (C-19) has had on its membership base / civil construction companies, in the various sectors they operate. The overriding objective of the survey was to obtain feedback and data on the following:
- Business impact of C-19,
- Capacity for companies to tender for more civil construction projects in the short term, and
- Likelihood of companies employing more workers should they be successful in a tender.
Click here to see a copy of the survey report released last Friday, 24 April 2020, which I trust is self-explanatory.
The results of the C-19 CCF Member Survey provides strong evidence that the sector has the capacity to take on more civil infrastructure projects and employ thousands more workers to stimulate the Australian economy. The survey results demonstrate civil construction companies, particularly those operating at the tier 2, tier 3, and below have significant capacity to assist the 3 tiers of Government and it’s Agencies to support the economy and to keep people employed during these unprecedented times.
With 228 respondents (13.4% of the membership base) and 32% of these respondents being from Victoria, the survey sends a powerful message that the civil infrastructure sector is ready to lead the economic recovery if Government and Private Enterprise can inject more money into the sector for new “shovel ready” projects. Key messages and out-takes from the survey:
- 92% of respondents advised they would have the capacity to tender for new projects up to $50 million, if governments allocated funds for civil construction works covering: road, rail, bridges, ports, utilities, power, water, telecommunications, and other local civil projects.
- 64% of companies indicated said they would need to employ additional workers if they were successful in tendering for additional projects, and a further 29% indicated they would consider employing more workers.
- Respondents indicated that business impact is largely due to four main interruptions (supply chain, travel restrictions, lack of work opportunities and client direction).
- In addition, 28 percent of respondents are experiencing payment delays and 58% are experiencing project delays.
It is important, however, that these projects are spread across as many tier 2, tier 3 and below companies across Australia to ensure widespread benefits can flow from any stimulus investment, particularly in rural and regional communities where infrastructure investment can deliver a significant multiplier effect to those local economies in the form of employment, training and community spending.
We will continue to use the results of this survey in our advocacy and representation to Government and I trust if you, or any member of your team, has any questions emanating from the survey, you will not hesitate to contact me directly, or CCF National CEO, Chris Melham.