MESSAGE FROM THE CEO

Written by Rebecca Pickering Chief Executive Officer & Executive Director Civil Apprenticeships and Careers Ltd

We are delighted to welcome you to the Issue 2 (2023) of Civil Connect!

There is an ongoing dialogue about business confidence, the economic condition, and State Government infrastructure and planning initiatives in both metropolitan and regional areas, in South Australia. Our regions are instrumental in our state's prosperity, so it is crucial that our focus reflects this. This edition is reaffirming the significance of our regions with stories on: ф The Joy Baluch Bridge ф Regional Flood Recovery ф The Strzelecki Track ф Augusta Highway ф Princes Highway Corridor Upgrade ф Meet the Boss – Bull Bros Earthmoving, and West Coast Bitumen

Civil Connect has received a complete makeover this month, thanks to the hard work and dedication of our digital designer, Renee Shammall. This revamped edition offers a unique and thrilling reading experience. We are incredibly proud of Renee’s sleek new design and content as it provides an immersive experience, and we cannot express our appreciation enough. We invite you to enjoy the new flavour of this special edition.

A further word before you flick over the page…

A recent State Government media release reported that South Australia's economy is flourishing, having achieved second place nationally. Driving this success is the state's population growth, and its construction sector which has generated jobs and stimulated the housing supply. The State Government states that it is committing resources to ensure a steady stream of projects; however, there are worries regarding the potential challenges and obstacles South Australia could face in the future. An article from the University of Adelaide projected that the state's economic development may be moderate during the coming year. While there are the current low unemployment rates, financial constraints, escalating costs of living, and high energy prices, it is anticipated they all will contribute to diminished growth in 2023.

Unfortunately, I can’t help but agree. We hear your feedback and concerns, and it is apparent that our industry is slowing down to a crawl and many are concerned about the immediate short term.

In the third quarter of 2022, signs of deceleration in the South Australian economy became visible, marked by reduced public expenditure, decreasing residential investment, and the start of fewer infrastructure projects. This has prompted CCF SA to raise these concerns and remind the State Government of the necessity of continuing to invest in infrastructure if we are to ensure stable economic growth in the years to come.

South Australia's State Budget for 2023 is displaying an optimistic long-term vision for infrastructure projects in the state, softening current apprehensions about the suspected ongoing temporary pauses to government initiatives in the coming months. Specifically, a significant increase of $24.7 billion, from last year's $18.6 billion, has been allocated.

Yet, through this budget, approximately 51 infrastructure project completion dates have been delayed. The findings of the Federal Government's 90-Day Infrastructure Review will play a critical role in deciding the fate of the budgeted projects. If the review does not offer enough assistance, then there is a real danger of further postponements or cancellations.

To ensure we are ready to embark on this journey of infrastructure opportunity, our industry needs support and confidence to build now.

CCF SA will look to our state’s MidYear Economic and Fiscal Outlook (MYEFO), a mid-year budget review at both Federal and State levels. It is essential that South Australia's distinct concerns and the costs inflicted by current delays are seriously considered.

South Australia's small businesses constitute a fundamental pillar of the state's economic system, with 40% of the workforce accounting for more than a quarter of all wages and salaries, as well as one-third of all sales and services income. According to the South Australia's Small Business Strategy 2023–2030, 16.6% of the top small business industries in the state are linked to construction. The issue currently facing the industry is that Tier 1 and Tier 2 contractors, larger businesses, are taking on projects that were traditionally delivered by smaller companies. Smaller businesses are left in a critical and challenging position while they search for other sources of work. Our commitment to our industry, small businesses, and the awareness of concerns related to Federal and State budgets, inspired us to present our own direct submission to the

Reviewers responsible for completing the Federal Government's 90Day Infrastructure Review. Our submission calls on the Reviewers to acknowledge the uniqueness of South Australia's economy, the volume of Federal funding, and the consequences of further delays for our state and industry.

Our eagerness to receive the review results reflects the need to safeguard the stability of our industry. As such, we asked the State and Federal Governments to contemplate how the outcomes of the review could potentially affect our industry and contractors. As always, I encourage you to reach out and bring me up to speed with your views and concerns that keep you up at night. Your success supports every South Australian; we are here to ensure you have what you need to achieve this. Enjoy your read.

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