Victorian manufacturers to benefit from infrastructure spending

infrastructure spending

According to Ai Group, manufacturers based in Victoria are set to benefit from the increased infrastructure spending announced in yesterday’s State Budget. 

“The $21 billion funding for infrastructure is huge and will continue to support the economy and many industry sectors focused on infrastructure,” Ai Group head for Victoria Tim Piper said. 

“In addition to the infrastructure investment, Victorian manufacturers will need additional government programs to facilitate the growth of manufacturing capacity, including to address supply chain disruption and attracting investments into the state.” 

The program that delivers this infrastructure must consider and address the industry’s capacity to meet these additional demands. 

“We know that industry is concerned at the lack of labour and particularly skilled workers. This effectively constrains capacity,” Piper said. “We hope government will be recognising these constraints and actively pursuing an agenda to develop industry capabilities and particularly workforce capabilities.” 

According to Piper, the Victorian State Budget has proved to be focused on “health-led recovery” with considerable spending on health infrastructure matched by increased training and opportunities for joining the health sector. 

“The government projections are for the state to have a lower growth rate than the rest of the country as a whole, over the next two years,” Piper said. “We expect the government’s ambition would be to at least meet, if not do better than, the rest of the Australian economy.”