[+] Construction Revolution: Renewable Sector Will Spur Regional Boom

Northern Queensland is in the box seat to capitalise on the state’s $14-billion a year transition to renewable energy, but the state will need an additional 27,000 construction workers to make it happen, as well as new housing and infrastructure in the regions. A CSIRO-Construction Skills Queensland report into the renewables runway shows the state needs to ramp up its renewable capacity from 3.8gW to 196gW, a 50-fold increase, by 2050. Construction Skills Queensland director of research Robert Sobyra says there is no way, even with migration, that we can fill the construction jobs gap in the build out of the burgeoning sector . “The reality is that construction relies on young, fit men, and the young male part of the population is shrinking every year. This is a head wind story, and this is fuelling a demand side shock,” Sobyra says. “Migration is a bit of a false economy … immigration is not a sustainable solution because it’s not a boom, it’s a step change, this is an ongoing labour force demand. “The solution has always been to throw more people at it, but this is not a viable solution in this situation. That’s going to have to change if we’re going to have any chance of digesting that pipeline.” Sobyra says the answer lies in increasing productivity to work smarter rather than harder. “The only sustainable solution is productivity—how do we build more stuff with fewer labour inputs,” he says. “We need to look at investing in technology, pre-fabrication, digitisation of data. The government has a role to play in incentivising these things, because if left to the market it’s not going to happen. ▲ An artist's impression of the Stanwell Gladstone Hydrogen Hub, which is looking to export hydrogen to Japan. “During the mining boom we just stopped building other things in the state, but when you are talking about a permanent lift in demand for labour, that’s not really an option. “Direct investment will have a spill-over effect on the regional economy. There will be more houses that need to be built, roads and infrastructure that will need to be upgraded, and this will also require labour.” Sobyra says that according to modelling, northern Queensland will be the biggest winner in the renewable energy transition as it was well connected to ports and financially the most efficient area to accommodate the industry. According to the CSIRO-CSQ report, northern Queensland will attract up to $6.5 billion in renewables investment each year through to 2050 in what Sobyra describes as a “huge regional story”. He says the ripple effect will fuel regional economic growth. Central Queensland also looked to be a winner with the Gladstone Hydrogen Hub earmarked for the region. Fortescue Future Industries (FFI) is building a hydrogen electrolyser manufacturing plant at Aldoga, which founder Andrew Forrest says will put Gladstone on the map for the renewable-hydrogen supply chain. “As GEM [Green Energy Manufacturing] develops according to FFI’s own requirements and other customer needs, manufacturing will come roaring back to regional Australia, creating many thousands of jobs,” Forrest says. Sobyra says Construction Skills Queensland is now following the development of CS Energy’s Kogan Creek Renewal Hydrogen Demonstration Plant to get a better understanding of what skills will be required into the future. Low and mid-range skilled construction workers and labourers will be in hot demand and will move to the regions to build and operate the power infrastructure. Renewable skill demand profile ▲ Source: Queensland's Renewable Future Report Electricians, earthmovers, concreters and crane operators are expected to be the most sought after trades in the big renewables build program. The $21 billion of renewables projects to 2025 will absorb about 5 per cent of the deployable construction workforce, but this will step up significantly by 2026, according to Sobyra. The hydrogen economy will absorb about 8200 construction workers on average for the renewables build out, according to the CSIRO-CSQ modelling. This week is National Skills Week and Prime Minister Anthony Albanese says his government is focused on developing the skills needed for the future of construction and trades, ahead of the Jobs and Skills Summit next week. Proptech platform Procore’s director of APAC solutions consulting, Will Twomey, says the construction industry is evolving with an increased focus on sustainability, robotics and automation. Almost half of respondents to an industry survey reported they expected some construction would not require human labor in the future, and about a third think builders will need broader skills. “As this transformation continues, we’ll see construction professionals focusing more on problem solving, strategy, technology and even ethics, both onsite and in the office,” Twomey says. “Traditionally male-dominated and manual labour-oriented, the construction industry is quickly transforming due to the influence of climate change and the impact of accelerated technological development. “We are facing a national skills shortage, and National Skills Week serves as a reminder of the emerging skills needed to embrace industry trends.” You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] Construction Revolution: Renewable Sector Will Spur Regional Boom

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