Why this is important to Wisconsin businesses: Wisconsin manufacturers and suppliers of engineering, construction, highway and infrastructure equipment may find opportunities to win business in Australia as the industry undertakes mega projects over the next decade, supported by government funding.
The Australian government plans to make a big investment in upgrading infrastructure as a way to help Australia’s economy bounce back from the COVID-19 pandemic.
In the 2021-22 budget, an additional $15.2 billion AUD ($11.1 billion USD) is allocated for infrastructure projects. This increase in government spending will positively influence the construction, building materials, engineering and mining industries. It could also provide opportunities for Wisconsin exporters specializing in engineering, construction, roads and infrastructure equipment.
In total, the Australian government plans to spend $110 billion AUD ($79 billion USD) over the next 10 years, focusing on construction and maintenance of road networks, community infrastructure and rail transportation networks.
Of note for companies looking to pursue opportunities in Australia:
- From a geographical perspective, the states on the east coast, including New South Wales, Queensland and Victoria, have the strongest pipeline of future projects. For instance, of the total allocation for the Road to Recovery program—for maintaining the country’s roads—two-thirds of the funding has been allocated to these three states.
- From a pricing perspective, imports of construction and infrastructure equipment are generally not subject to import tariffs under the U.S.-Australia Free Trade Agreement. However, these products would be subject to local goods and services taxes.
- It will be important to assess the suitability of equipment for local conditions as well as registration and certification requirements at a national and state/territory level.
Wisconsin exporters interested in pursuing opportunities are encouraged to review a summarized list of nationwide infrastructure projects in rail, roads and community infrastructure published on the Infrastructure Magazine’s online portal and a list of a roads projects in the pipeline at Roads Australia, and contact WEDC to discuss opportunities and assistance options.
