Bridging the Ditch: Constructive Outcomes for NZ and Australia’s Infrastructure
1. Scarcity of Resources: Material, People and Lead Time
Scarcity of Materials:
The availability and cost of construction materials are significant factors influencing our infrastructure projects. Both New Zealand and Australia face issues in securing an adequate supply of materials due to factors such as limited local production, dependence on imports, and global market fluctuations.
New Zealand, for instance, experiences scarcity in materials like steel, cement, and timber. The demand for these materials has increased due to the surge in construction activities, while supply chains have faced disruptions. The limited availability and rising costs of materials pose obstacles to project timelines and budgets.
Similarly, Australia has encountered scarcity in construction materials, particularly in high-demand regions. The increased demand for materials, driven by population growth and infrastructure development, has strained supply chains. Delays in material procurement and price increases impact project timelines and cost estimates.
Collaborative efforts are essential
Scarcity of skilled labour:
The availability of skilled labour is another crucial aspect of infrastructure development. However, both New Zealand and Australia face barriers in attracting and retaining a skilled workforce, leading to labour shortages in the infrastructure industry.
To address the scarcity of skilled labour, collaborative efforts are essential. Governments, educational institutions, and industry stakeholders must promote vocational training, apprenticeships, holistic wellbeing and upskilling programmes, and create an easier pathway for migrants into the sector. By investing in workforce development and attracting talent to the industry, both countries can enhance their capacity to deliver infrastructure projects efficiently.
Urban sprawl is financially unsustainable over the long term
Lead Time for Accessing Resources:
In addition to the scarcity of materials and skilled labour, the lead time required to access these resources can be a major setback towards infrastructure development. Delays in obtaining permits, approvals, and resource consents can impact project timelines and hinder progress.
New Zealand has recognised the need to streamline consenting processes and reduce lead times. It is anticipated that with the RMA reforms and the introduction of the Natural and Built Environments Act (NBA) in particular, will simplify and expedite resource consent procedures, enabling faster access to resources. Collaboration between regulatory bodies , project proponents, and communities can further enhance the efficiency of these processes, ensuring timely access to resources.
Australia, too, has undertaken efforts to reduce lead time in accessing resources. Streamlining approvals and permitting processes, along with digital innovation, can help expedite the delivery of infrastructure projects. Collaboration between government agencies, industry stakeholders, and communities is vital to achieving these improvements. Examples of such in Australia include the Office of the State Coordinator and the Victorian Major Projects Pipeline.
By addressing lead time challenges through collaborative approaches, both countries can expedite project delivery, optimise resource utilisation, and minimise delays and associated costs.
