AUKUS $12 Billion Boost: What It Means for WA’s Jobs and Housing

Investment in WA’s Defence Hub

Western Australia’s civil construction sector is feeling optimistic due to a substantial $12 billion investment by the federal government in a defence hub near Perth. This initiative will support the development of an AUKUS submarine and naval shipbuilding facility at Henderson shipyard, generating an anticipated 10,000 jobs over the next 20 years.

The Albanese government has committed to this investment over the next decade, aiming to enhance employment opportunities. Andy Graham, CEO of the WA Civil Contractors Federation, expressed confidence that the current construction workforce will be sufficient to meet the project’s needs. “This represents a stable pipeline of about $2 to $3 billion annually for the next 10 to 15 years,” he stated.

Current Market Trends

Although the civil construction market is showing signs of cooling, with major projects like the Metronet rail nearing completion, this situation has resulted in some workers becoming available for the defence hub project. Graham sees this as a positive development.

Housing Affordability Challenges

Despite the influx of jobs, Western Australia faces a housing crisis. The Real Estate Institute of WA reported that it is the only state where housing affordability worsened in the June quarter. Rapid population growth, sluggish housing supply, and skyrocketing rents are worsening the issue.

With 10,000 workers expected for the AUKUS project, housing will be critical. Graham stressed the need for more homes to accommodate these workers. While civil contractors are increasing their efforts in housing development, challenges persist, particularly for young apprentices seeking affordable accommodation.

Skill Shortages and Apprenticeships

Andrew Neaves, managing director of marine defence manufacturer Allship Engineering, emphasised the importance of addressing the skilled labour shortage for successful project completion. He pointed out that attracting apprentices is crucial, as importing skilled workers alone will not fulfill long-term needs. “We have never managed to bring in all the skilled workers that we require,” he noted, highlighting the need for local training initiatives.

Long-term Solutions and Infrastructure

WA Premier Roger Cook reiterated the government’s commitment to managing both housing and skill shortages. He mentioned the establishment of a defence industry skills academy aimed at preparing locals for the anticipated workforce demands.

Cook highlighted that collaboration with the federal government will be crucial to fund the required infrastructure for the AUKUS project, ensuring that the long-term requirements of both the workforce and local industries are addressed.

This investment in the defence sector could provide various visa sponsorship opportunities and job roles for international seekers, particularly in engineering, construction, and related fields.

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