Building your team ahead of Queensland’s Major Projects Pipeline

With the launch Queensland Major Projects Pipeline Report (QMPPR), it is clear that the Queensland construction boom is well and truly underway. 

Queensland’s construction and infrastructure sectors are reported to experience a whopping $92 billion boom over the next 4 years with a major projects pipeline expected between 2023/24 and 2027/28, and the Olympics being one of the major projects contributing to this boom.   

This boom is anticipated to be the strongest year of work since the end of the resources boom in 2014/15. The projected funded activity for this peak year is estimated at $12 billion and potentially could surge to $22.9 billion. This surge would surpass the level of completed work observed at the peak of the resources boom in 2012/13, which stood at $19.1 billion. 

For infrastructure businesses, this marks a substantial increase from previous years, presenting both opportunities and challenges from a recruitment standpoint. 

What you can expect over the next 4 years: 

The QMPPR has outlined their key findings expected to unfold over the next four years. I’ve broken down these findings to provide you with a more insightful perspective on what to anticipate during this impending boom: 

• Renewed Focus: Over the next four years, Australia’s spending trend will experience a shift. Previously concentrated heavily on transport, particularly rail and roads, the government is now redirecting its focus to the renewables sector. This adjustment not only aligns with environmental priorities but also signals a significant change in Australia’s investment priorities. 
• Elevated Funded Activity: Funded activity is expected to remain high throughout the pipeline, gradually tapering off in 2027/28.  
• Anticipated Unfunded Surge: Unfunded activity is projected to surpass $10 billion in 2026/27, with the private sector taking responsibility for an average of $8.1 billion in unfunded projects annually during the last three years of the pipeline. 
• Public Sector Contribution: The public sector remains a key funder, representing 51% of the total pipeline activity—an increase from 49%. 
• Funded Project Share: In funded projects, the public sector accounts for 67%, showing a slight decrease from the previous year’s 74%. 
• Sectoral Contribution: Within the private unfunded work, the mining and heavy industry sector holds a substantial share at 57%, while the non-water utilities sector accounts for 41%. This highlights specific areas for growth and investment. 

The Role of Megaprojects and Sector Concentration 

• Megaproject Dominance: Funded work is significantly concentrated in ‘megaprojects,’ those valued at over $1 billion, making up 51% of the pipeline activity over the next three years. 
• Shift in Project Ratio: The ratio of projects valued under $200 million has decreased to 7% of major project work over the next three years. This marks a significant decline compared to an average of 14% observed over the past four publications. 
• Implications: The shift in project size distribution highlights a changing landscape, with a greater focus on larger, high-value projects, potentially influencing resource allocation and strategic planning within the industry. It is crucial for smaller businesses to strategise how they can position themselves to secure larger projects in this landscape. 
• Specialised Recruitment: The dominance of megaprojects requires specialised recruitment strategies tailored to large-scale projects. 

Regional Disparities 

• Contrasting Trends: In contrast to the previous year, funded work has seen a decline of 23% in the Ipswich-Toowoomba-Logan region and 33% in Darling Downs-Maranoa. 

• Regional Growth: All other areas have experienced an increase in funded work, with Wide Bay and Townsville leading the growth at remarkable rates of 497% and 196%, respectively. 
• Sectoral Drivers: The primary drivers of this regional shift are projects in the utilities sector, specifically electricity and defence, along with the mining and heavy industry sectors. Understanding these sectoral dynamics is crucial for strategic planning and resource allocation across diverse regions. 

Addressing Supply Constraints and Labour Shortages  

During this booming period, the report highlights a growing concern about the looming risk of labour shortages. 

The anticipated peak in labour demand is set to hit in 2027/28, with a surge of 78%, averaging 43,702 workers. Companies will need to be well-resourced by 26/27 as this will be the height of the boom. 

The heart of this demand will be in regional and remote Queensland, particularly fueled by the concentration of renewable energy projects in these parts of the state. This geographical focus adds a layer of complexity, with around 70% of the labour demand clustered in these areas, where workforce challenges have historically been amplified.  

Preparing for the Infrastructure Boom through building, training, and retention: 

As the demand for major projects surges, having a robust and well-trained workforce has become imperative for sustained success throughout the boom. Building a cohesive and engaged team is essential for ensuring longevity throughout the boom.  

Recruiting for infrastructure businesses in the current booming environment requires a strategic and proactive approach.  

The first step in building a robust team is identifying the roles and skill sets you’ll need. From project managers and civil engineers to procurement specialists and sustainability experts, a diverse range of talents will be crucial. There must be consideration for both immediate needs and long-term growth to create a comprehensive staffing plan. 

Here are some of my top tips to help you build a strong and effective team: 

1. Anticipate Skill Needs: Identify the specific skills required for the types of projects your business is involved in. 
2. Collaborate with Specialised Recruitment Agencies: Engage with recruitment agencies that specialise in the infrastructure and construction sector. Recruiters not only streamline the hiring process by presenting pre-screened candidates, save your team valuable time and resources. These agencies often have a deep understanding of the industry’s unique requirements and can provide access to a network of skilled professionals.  
3. Prioritise Employee Retention Strategies: Retention is a crucial part of building your team. Having a retention strategy to ensure that once you’ve recruited top talent, they remain engaged and committed to your business. This can include:  

• • Implement competitive compensation packages. 
  • Performance-based bonuses. 
  • Recognition programs to acknowledge and reward employees for their contributions.  
  • Conduct regular performance reviews and provide constructive feedback to help employees understand their career trajectory within the company.  
  • Listen to employee feedback and address concerns promptly, demonstrating a commitment to their well-being and job satisfaction.  

• • Provide opportunities for career advancement and upskilling to show a clear path for professional growth within the organisation. 

1. Invest in Training and Development: Implement training programs to upskill your existing team and attract candidates looking for growth opportunities. 
2. Diversify Recruitment Channels: Explore various recruitment channels, in a boom like this when most of your competitors will be fighting for the same candidates your traditional recruitment strategies may need to be diversified. Consider partnerships with specialised recruitment agencies familiar with the infrastructure sector. 
3. Promote Company Culture: Showcase your company culture and values to attract candidates who align with your organisation’s mission and work ethic. Highlight opportunities for career advancement and professional development within your company. 
4. Offer Competitive Compensation: Stay informed about industry salary benchmarks to ensure your compensation packages are competitive. I offer free salary benchmarking discussions which you can book in with me here! 
5. Build Talent Pipelines: Even if you don’t have the right role available for a candidate, establish and nurture relationships with potential candidates even before positions become available. This allows you to maintain a talent pipeline to quickly fill positions when needed, especially during periods of high demand. 
6. Promote Career Advancement: Emphasise opportunities for career growth and advancement within your organisation. In recent years we have seen more and more candidates looking for more than just a salary.  
7. Implement mentorship programs to foster the development of junior employees: This allows you to build your team from the ground up and retain them for future projects. 

This report offers an exciting outlook for Queensland’s Infrastructure industry and with the right preparation, your business can be well equipped to take full advantage. 

If you are interested in discussing how Fuse can enhance your recruitment strategy, engage in salary benchmarking, or explore available candidates across Queensland, please feel free to contact me directly on 0417 868 821.