Australia’s infrastructure pipeline has surged to a record A$242 billion over the next five years, driven by housing and energy transmission investments as public project value climbs and private delivery sits at an even larger A$760 billion.

Public projects account for the bulk of the pipeline, with transport still the largest single category, but housing and energy infrastructure are growing faster and energy projects show the strongest year-on-year expansion.

The workforce gap remains acute: about 141,000 specialized roles are currently unfilled, and regional shortages are expected to worsen sharply within a year as energy transmission and regional construction accelerate.

Leaders urge shifting away from simply increasing labor input toward boosting productivity and adopting innovative approaches to deliver investments, especially in regional areas.

Industry warns that sluggish productivity and supply chain vulnerabilities heighten delivery risks, underscoring the need for upskilling and smarter construction methods.

Input costs show some relief as timber and cement ease, while cheaper imported steel helps lower potential project expenses.

Housing accounts for a meaningful slice of the pipeline, with the residential segment growing as demand from developers and private buyers drives investment.

Renewables remain a major driver, with about A$163 billion earmarked for projects like transmission lines, solar farms, and pumped hydro, largely aimed at regional areas.

Public investment is expected to rise significantly in regional NSW, Tasmania, and Queensland, potentially doubling and increasing staffing pressures there.

More than 60% of the shortage is made up by trades workers and labourers, highlighting the critical need for productivity gains and sector innovation to meet regional project demand.

Industry leaders emphasize improving the sector’s appeal and culture to attract talent, including greater diversity, gender inclusion, and better working conditions.

Productivity in construction lags due to factors like widespread subcontracting, low-bid procurement, and delays from environmental approvals, feeding the capacity gap.