Let’s Discuss If a Growing Economy Boosts Construction
Rising demand in residential and commercial developments could be a sign of economic growth. But it’s also true for any kind of construction project such as correctional centres.
All kinds of major construction projects often lead to short- and long-term economic gains in the region. For instance, the construction of the Clarence Correctional Centre (approximately 12.5 kilometres southeast of Grafton) will inject about $560 million into the local economy. The money will go into the procurement of various goods and services. The project will also lead to the creation of over 1,000 construction jobs and around 600 operational jobs.
Growing economy boosts construction? Or it’s the other way around?
Economic growth often results to the demand for new infrastructure. New roads and bridges will be built to further develop a region and make the area accessible for transport and deliveries. New apartment complexes will also be created to accommodate the present and upcoming workforce. Economic growth will also lead to construction of more commercial facilities as demand for goods and services rise.
But new infrastructure could also lead to economic growth. This serves as an “economic stimulus” especially in many developing nations and regions. That’s because a new construction project will create ripple effects in the form of new jobs and income sources.
As mentioned earlier, the construction of the Clarence Correctional Centre will result to the creation of over 1,000 construction jobs. This is only just the beginning. After the construction, people will use the building and this requires ongoing operation jobs (around 600 jobs in the correctional centre). The project will also result to the procurement of construction materials which can boost the income of industries upstream (e.g. extraction and processing of metals, logistics of construction materials).
Furthermore, the building of the correctional centre goes beyond the upfront benefits. That’s because its focus will be on rehabilitation wherein inmates could have a successful transition from prison and back into the community and workforce. As a result, they will become again productive members of the society and strong contributors to economic growth.
New construction and economic growth work hand in hand to create and sustain jobs in NSW and the rest of Australia. The ripple effects will even create new opportunities for the region and nearby areas. Many people will directly and indirectly get benefits from construction initiatives of any kind.