Australia Boasts Competitive Grassroot Outlook

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Researched by Industrial Info Resources Australia (Perth, Australia)--Australian Prime Minister Tony Abbott released a $400 million "Industry Innovation and Competitiveness Plan" in October to encourage the country to develop in areas where it has a "natural and competitive advantage." As part of the plan, the Liberal government has proposed to spend $188 million over the next four years to create growth in a number of selected industry centers: food and agribusiness; mining; technology and services; oil, gas and energy reserves; medical technologies and pharmaceuticals; and advanced manufacturing services.

The plan comes at a time when Australia's industrial future is beginning to transform from one that is heavily dominated by mining to one more shaped by alternative industrial centers. While mining will continue to represent a large share of the Australian industrial spending market, a number of other heavy industries are growing relative to the slowdown of the mining boom.

Across Oceania, there are more than 2,162 planned projects being tracked by Industrial Info, with a total investment value of US$737.39 billion, including 1,977 projects worth US$698.32 billion in Australia. Other Oceania countries include Fiji, New Caledonia, New Zealand, Papua New Guinea, Solomon Islands and Vanuatu.

Of these planned projects in Oceania, at least 742 are classified as grassroot projects, with a value of US$434.11 billion, which is more than half of the total investment value of all new projects.

More than half of these grassroot projects belong to the Metals and Minerals Industry. However, the total value of 131 grassroot projects that belong to the Oil and Gas Production Industry total US$214.1 billion, compared with 385 mining projects worth US$151.01 billion, which shows the growing strength of the Oil and Gas Industry in Australia. This number does not include the 39 grassroot oil & gas pipelines that have a total investment value of $12.06 billion--a number that will surely grow as mining companies reassess the cost of powering their sites with diesel generators and look to cheaper natural gas.

Other industries are on the rise, although with a much smaller spending scale when compared with mining and oil & gas. The Power Industry has the third-largest share, with 143 planned grassroot projects worth US$35.161 billion--most likely a consequence of the 516 mining and oil & gas projects. Although industrial manufacturing is new to the Australian database, Industrial Info is tracking more than US$13 billion that will be spent on 20 grassroot projects. This number is expected to rise significantly by the end of the quarter and into the New Year.

These statistics also emphasize that sceptics of strength of the mining boom should not be so quick to dismiss the rule of relativity. The sheer volume of grassroot mining projects across Australia seems to signify that the mining boom is still strong. However, the Oil and Gas Production Industry looks like it will eclipse the Mining Industry in expenditures, particularly when coupled with the 39 grassroot oil and gas pipelines that will ultimately provide a cheaper source of power for mining.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.