No Supply, No Delivery: Construction Materials Critical to Budget Priorities
Cement Concrete & Aggregates Australia
Key Facts:- The cement, concrete and aggregates industry contributes over $20 billion to Australia's GDP and supports 112,000+ jobs nationwide.
- CCAA urges the Federal Government to prioritise supply chain resilience, productivity reform and fuel security in the 2026-27 Budget.
- The sector faces challenges from regulatory inefficiencies, planning barriers and global uncertainty while underpinning the $175 billion construction sector.
- Reforms needed include faster approvals, consistent planning frameworks and more efficient freight networks.
- CCAA calls for formal recognition of the heavy construction materials sector as essential within national policy frameworks, including fuel security planning.
Cement Concrete & Aggregates Australia (CCAA) is urging the Federal Government to use the 2026–27 Federal Budget to set a clear direction on supply chain resilience, productivity reform and fuel security, as outlined in its Pre-Budget Submission, warning that Australia’s housing and infrastructure ambitions depend on the sector that underpins the nation’s construction pipeline.
New analysis by Oxford Economics in The Economic Contribution of the Cement Concrete and Aggregates Industry in Australia shows the industry contributes more than $20 billion to GDP and supports over 112,000 jobs nationwide, underpinning Australia’s $175 billion construction sector and $242 billion public infrastructure pipeline.
The heavy construction materials sector is the starting point of Australia’s built environment, enabling every road, bridge, home and energy project, yet is increasingly constrained by regulatory inefficiencies, planning barriers and growing global uncertainty.
CCAA Chief Executive Officer Michael Kilgariff said the Budget must make clear the importance of ensuring reliable, continuous and affordable supply of construction materials across the economy.
“The heavy construction materials sector underpins every housing, infrastructure and energy project in Australia. Without it, those projects simply don’t proceed.”
“Getting the settings right across freight, planning and approvals is what enables the efficient, timely and cost-effective supply of construction materials.”
Mr Kilgariff said global uncertainty and tightening fuel conditions are increasing pressure on the systems that support construction delivery.
“Our industry operates in real time across production, transport and delivery, and is highly exposed to global supply chain pressures,” he said.
“When those pressures build, from fuel constraints to international disruption, the impacts are immediate across costs, timelines and project delivery.”
CCAA is calling on the Federal Government to prioritise reforms that strengthen the productivity and resilience of the construction materials supply chain.
“Productivity gains in this sector come from better policy settings, including faster approvals, more consistent planning frameworks and more efficient freight networks,” Mr Kilgariff said.
“These are the levers that reduce costs, improve efficiency and support the delivery of national infrastructure and housing priorities.”
CCAA also reiterated its call for the heavy construction materials sector to be formally recognised as essential within national policy frameworks, including fuel security planning.
“This is the sector that sits at the very start of the construction supply chain,” Mr Kilgariff said.
“Ensuring the heavy construction materials sector is recognised and prioritised is fundamental to keeping Australia building.”
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About CCAA
CCAA is the voice of Australia’s heavy construction materials industry, an industry that contributes $20.7 billion to GDP and supports 112,970 jobs nationwide. CCAA members produce most of Australia's cement, concrete and aggregates, which are essential to the nation’s building and construction sectors
Contact details:
Contact: Mitch Itter, Manager Communications | 0431 542 660 | [email protected]