Truck and Machinery predictions for 2021

New funding to fast-track approvals for major WA projects could see a BOOM

More than $1.6 million will be invested in cutting application wait times for major resource projects, unlocking thousands of jobs and delivering significant economic benefits for Western Australia.

The State Government expects that this funding could assist at least 17 projects currently seeking regulatory approvals. In total, these projects are estimated to create almost 18,300 construction jobs and more than 4,500 operational jobs.

The additional funding will support State Government regulatory authorities in managing a significant increase in applications for key environmental, mining and heritage approvals, related to these major projects.

Resource market trends, such as the expansion of the gold and iron ore sectors due to high commodity prices, and WA's reputation as an attractive and safe destination for resource investment, are driving the surge in applications.

To ensure the growing number of applications does not delay approvals for major projects, the State Government will fund additional surge capacity across the Department of Water and Environmental Regulation including Environmental Protection Authority services, the Department of Planning, Land and Heritage, the Department of Mining, Industry Regulation and Safety, and the Department of Jobs, Tourism, Science and Innovation.

All four authorities have also agreed to work together on a number of new measures that will facilitate better co-ordination and the prioritisation of approvals for major projects across government.

These immediate short term actions have been taken in response to feedback from industry stakeholders, and ensures approvals for major projects will proceed in parallel with longer term regulatory reform.

In total, these projects are estimated to create almost 18,300 construction jobs and more than 4,500 operational jobs

Truck and Machinery predictions of 2021

Stock shortages are tipped to drive a national machinery hire boom in 2021, with demand for excavators skyrocketing.

Leading machinery platform, Machines4U.com.au, hosted more than 154,000 machinery sale listings last financial year and saw a sharp 96.2 per cent increase in enquiries over the initial COVID-19 outbreak period. CEO Steve Krebs tips demand to be even stronger in 2021.

“An inability to import new machinery, equipment and parts in a timely manner from overseas as a result of COVID-19 is driving up demand from Australian businesses and primary producers to hire equipment,” Mr Krebs said.

Mr Krebs anticipates machinery hire will be the biggest growth area in the sector next year as demand peaks and supplies dwindle.

The most in-demand pieces of equipment in 2021 will be: 1. Excavators 2. CNC metalworking machinery 3. Tractors 4. Panel Saws 5. Semi Trailers 6. Commercial trucks 7. Forklifts 8. Scissor Lifts 9. Scrubbers 10. Conveyors

Krebs said stock shortages, combined with a boom in online retailing, the Instant Asset Write Off Scheme has led to a 120 per cent increase in searches for agricultural machinery and a 142 per cent increase in searches for trucks in the past year.

Of the 5.4 million unique visitors to the Machines4U.com.au website, more than 470,000 were specifically searching for trucks to buy. The most popular search – commercial Isuzu trucks, followed by Kenworth semi-trailers.

Pilbara gas project approved

The State Government has executed agreements to allow Woodside to fill the North West Shelf LNG facilities with gas from the Pluto fields, and to secure domestic gas supplies for Western Australia.

Woodside is building a new onshore pipeline to connect the North West Shelf and Pluto LNG facilities. Construction of the interconnector supports up to 320 construction jobs in the region and optimisation of LNG and domestic gas production across the two sites.

Woodside may produce three million tonnes of LNG at the North West Shelf site over four years with gas from the Pluto fields, with production expected to commence in 2022.

Consistent with the WA Domestic Gas Policy, Woodside has committed to make gas equivalent of 15 per cent of its LNG exports available to the domestic market.

This is in addition to its existing obligations under domestic gas commitment agreements for the North West Shelf and Pluto projects.

Premier Mark McGowan said, "The Pluto Acceleration project helps keep the North West Shelf LNG trains full and clears the way for new LNG export industry development. "These agreements with Woodside reinforce our domestic gas policy and provide certainty for LNG industry investors and domestic gas consumers.