The construction industry generates over $350 billion in revenue for Australian market contributing 9% to Australia’s gross domestic product with annual growth rate of 2.4 % in the next five years. After (Covid-19) 95% of the projects are either shut down or paused for the next few months which are worth over $5 billion, which can effect more than 80% of the construction forcing them to the wall in next three to four months as 80% of the construction industry are Small medium business (SMB). The labourer jobs safety of workers and to keep as many workers involved as possible but due fixed price contract terms of most contractors they will have to keep their workers employed during the slowdown and if a job takes 4 months more than the usual they will have to bear the cost and many contractors cannot demonstrate the fall in revenue required for job keeper program. As government is trying its best to keep the jobs and come up with sustaining policies for the construction industry, NSW planning minister announced a package of $70m for parks and major drainage work in North West housing areas.
Drying Up Industry in Australia:
As the construction industry is drying up due to the pandemic one million Australians are left with no choice but to wait and pray for a miracle just alone construction industry employee more than 1.1 million people. Both governments NSW & Victorian are looking to bring in “shovel-ready” projects and officials have mentioned that the best way to keep people off the hook is to keep the pace up on upcoming projects and that the federal government will work with the states to come up with creative ideas and thinking to minimize the risk, as officials have also warned about the second wave of corona-virus to hit by November or December which can cause serious damage to Australia’s third largest industry.