Infrastructure Australia puts the five-year public infrastructure pipeline at a record $242 billion, as projects face a shortage of 141,000 workers that could rise above 300,000 by mid-2027. Investment is growing faster than the construction workforce available to deliver it.
The pipeline and its workforce
The pipeline grew by $29 billion in a year. Its projects could improve transport, speed the energy transition, strengthen water security and build skills and supply chains, according to the article. Infrastructure Australia estimates public infrastructure projects face a workforce gap of 141,000 workers.
That shortage could exceed 300,000 by mid-2027. Massimo Franceschi, chief operating officer, Webuild Australia, said the industry can't rely only on adding people to deliver more infrastructure; it must make better use of existing capability. Australia has the investment, pipeline and engineering capability to deliver an extraordinary decade of infrastructure, he said.
These figures place productivity alongside labour availability as a constraint on turning public investment into completed projects. Franceschi said the scale of the pipeline raises a central question: how can each dollar invested deliver the greatest value?
Construction productivity has lagged behind other sectors. Labour productivity in construction grew 17 per cent between 1994-95 and 2023-24, compared with 64 per cent across market-sector industries and 58 per cent in manufacturing. Oxford Economics estimates stagnant construction productivity costs Australia $62 billion in lost work each year.
How projects are delivered
Franceschi outlined four approaches: standardising repeatable assets, resolving constructability issues early, allocating risk to parties best able to manage it, and transferring capability between projects and jurisdictions. Reusable designs and components for stations, substations and viaducts can reduce interfaces, support more efficient manufacturing and give suppliers greater confidence to invest.
Bring industry into design early. That allows teams to tackle engineering, sequencing, logistics and supply-chain issues while options remain open and changes cost less. Franceschi said collaborative contracting can improve transparency and certainty for clients and contractors. Parties with the knowledge, authority and capability to control risks can manage them most efficiently, he said.
Digital engineering, modern construction methods and more efficient manufacturing can improve planning and delivery, according to the article. Procurement can encourage proven innovation rather than require the industry to reinvent its approach for every project. Aligning relevant standards and requirements between jurisdictions can help apply skills, systems, technologies and proven solutions across programs.
Franceschi said standardised components and reusable designs can let contractors and suppliers carry knowledge, systems and investment from one project to another. Incremental improvements across a pipeline of this scale can create considerable value, he said.
Different costs, shared capacity
Franceschi cautioned that international project comparisons can mislead: costs depend on geology, labour markets, standards, project scope, regulation and community expectations. Copenhagen's M4 metro extension delivered five stations and 5.7 kilometres of tunnel over almost six years for about $1.9 billion. Melbourne's Metro Tunnel delivered five stations and twin nine-kilometre tunnels at a project cost of $13.48 billion.
Neither project is a Webuild project; Franceschi cited them as publicly reported international benchmarks. Direct comparisons need caution because scope, geology, labour markets, regulatory requirements, design standards and included works differ.
Local contractors bring knowledge of Australian communities, conditions, supply chains and regulation, Franceschi said. International contractors bring experience from different markets and technical environments, including major transport, energy, water and tunnelling programs. Combining those capabilities while developing local skills, suppliers and partnerships can expand industry capacity rather than substitute for it.