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GLOBAL PROPERTY & CONSTRUCTION CONSULTANTS
BIG ISSUES AUSTRALIA’S PROPERTY AND CONSTRUCTION FUTURE Michael Skelton Australia & New Zealand Research Manager
Facts, Fiction and the Future Population Growth Infrastructure Investment Forecast Labour  Force Demand Projected Cost Escalation ‘ Competitive’ Immigration...
WHERE WE WERE...
WHERE WE ARE...
WHERE WE NEED TO BE...
HOW DO WE GET THERE?
The Population Debate How much is enough?
Australia - Today million 22.5
Australia @ 2050 million 30 ?
Australia @ 2050 million 35 ?
Australia @ 2050 million 40 ?
Australia @ 2050 More??
DECIPHERING THE POPULATION DEBATE
The Most Dangerous Idea! – A Static Population Million Today 2050 Projection +146% -40% +5% Minor Allowance of Growth from 22.5 million to 25 million
Population Projections High Projection Scenario 38% Increase South Australia Currently 1.6 million 2.2 million National 39.4m 33.9m 30.2m High Projection Scenario 75% Increase
The Irreversible Truth – Ageing Population % of GDP devoted to  Age-Related Spending by 2050 Proportion of Population  Aged 65+
New research was needed…
INFRASTRUCTURE AND LABOUR FORCE
Infrastructure  Labour  Force Growth - Historical ,[object Object],Infrastructure Labour Force Total Labour Force
Infrastructure Investment (per capita) - Historical
2050 – REQUIRED Infrastructure  Labour  Force Current infrastructure labour force: 738,000   Population Projections     Low Medium High Infrastructure Investment Projection  Scenarios Low Projection 907,000 1,021,000 1,191,000 Medium Projection 1,568,000 1,765,000 2,058,000 High Projection 2,229,000 2,508,000 2,925,000
Ratio of Infrastructure  Labour  Force to Total Population High Projection Low Projection
2050 – REQUIRED Infrastructure  Labour  Force Infrastructure labour force contribution  will grow to  7.5%  of the total population from a long  term average of 3%
Construction Productivity Job Required per $1million NSW VIC QLD SA WA Australia Residential &  Non-Residential Work Done 16.7 10.6 13.9 14.2 11.6 13.1 Total Work Done (Including Engineering) 8.3 7.3 6.3 6.8 3.5 6.3 Proportion of Engineering Work Done 50% 31% 55% 52% 70% 52%
COST ESCALATION
Unemployment Rate ,[object Object]
Why did the  Labour  Force Remain Tight? ,[object Object],Hours Worked (billion hours/Month) Total Jobs (millions)
Comparative International Construction Costs Office High-Rise Apartments Hotels
National Housing Deficit Worsening
‘ COMPETITIVE’ MIGRATION
Circular Migration – Competition for Skills
Circular Migration – Competition for Skills
Historical Net Migration This would achieve 42 million by 2050
Australia – Still one of the most ‘ liveable ’ countries? In recent years Australia’s ranking as one of the world’s  most liveable  countries & its  business investment  ranking have fallen
A Prosperous and High Liveability ‘Big’ Australia Percentage of People in Prison that have... 36% Never Been Employed in Any Capacity Completed Secondary School or Trade 7%
Connectivity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Australia is reaching the  trigger points … ,[object Object],[object Object],New  Economically   Viable  Cities
HOW DO WE GET THERE? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Thank you Michael Skelton Australia & New Zealand Research Manager [email_address] Delivering solutions that enhance and  sustain the world’s built, natural and social environments

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