Activity volumes for building roads, railways, water, electricity and telecommunications infrastructure in Victoria has hit its lowest point since 2009. It comes amid a national slowdown in engineering construction works.

New figures released today show that there was a $174 million drop in Victorian engineering construction works in the three months to September 2014. The volume of work was also $283 million lower than the same time a year earlier.

Engineering construction work volumes have now declined for three successive quarters and are far below the levels seen in 2011 and 2012.

Source: ABS 8762.0

In fact, the annual volume of engineering construction work in Victoria has fallen by more than $2 billion in the past two years – from $12.1 billion in the year to September 2012 to $10.0 billion in the year to September 2014.

“Despite Victorians crying out for better roads, improved rail connections and more infrastructure, we are seeing activity in these sectors dry up,” said Radley de Silva, Chief Executive at Master Builders.

“These types of works are crucial in protecting our community’s liveability and creating construction jobs right around the state.

“This situation will not be helped by cancelling the multi-billion dollar East West Link project.

“It also highlights the need for the new State Government to fast-track its plans to remove dangerous level crossings, build a cross-city rail tunnel and invest in new outer suburban road upgrades.”

Of the mainland states, Victoria had one of the biggest declines in engineering construction work volumes during the quarter, with our 6.8 per cent drop only eclipsed by Queensland (down 9.6 per cent) and South Australia (7.4 per cent).

Source: ABS 8762.0

“We are witnessing a significant decline in engineering construction works right across the nation, most notably in resource rich states coming off the massive investment into constructing mines,” Mr de Silva said.

“What we need to see here though is more infrastructure projects funded, so we can get more Victorians back to work and provide the facilities our community needs to thrive.”