iSeekplant’s CEO Sally McPherson recently travelled to the City of Churches to catch up with some customers and get a first-hand look at the construction boom the city is going through.
2017 was a massive year for Adelaide and Deloitte Access Economics’ quarterly investment monitor found that the construction project pipeline in South Australia totalled $47.2 billion. Of this figure, $9.96 billion was under construction in 2017 with just $1.5 billion worth of construction finishing in 2017.
In terms of private projects in Adelaide’s CBD there are currently 37 projects under construction with a total value of $2.06 billion.
Cranes are currently adorning the skyline and the future is looking bright for Adelaide. Planning Minister John Rau has spoken about the significance of private construction projects, stating, “If you look around the city today, the majority of cranes in the sky are privately funded,”
“In fact, of the 67 completed or under-construction projects in the city, 60 are privately-funded and seven are government-funded.”
One of the companies benefiting from the major growth in Adelaide’s construction industry has been VRents, which is the rental division of the Warrin Mining and Construction Volvo dealership.
VRents launched 18 months ago and now has 40 machines under management with further growth on the cards for 2018.
“Typically we only have one major project going on at a time in South Australia, at the moment we have a number of major projects. At this time we also have mining starting to pick up again, we have forestry doing well.
On what spurred this major growth Sally asked whether government policy had been a contributor, to which Chris replied “Yes, the Industry Participation Policy has come into effect which has changed the way major contractors procure their equipment.”
Machine productivity is also a focus for VRents with their graders and excavators being equipped with 3d GPS and in 2018 Volvo will be including upgraded productivity technology in its wheel loaders and dump trucks.
With construction not looking to be slowing down any time soon, VRents along with others in the construction space should be seeing increased growth for the foreseeable future. Exciting times are ahead for South Australia!
Here is some major construction news coming out of Adelaide