Premier’s foreword We talk so much our economic ‘transition’, but this transition won’t occur on its own. We have to take action ourselves. We need a real plan. And we need to invest. That’s what our $200 million Future Industries Fund is all about. The priorities of today will define our economic future, and we believe the Victorian Government needs to set those priorities. With those priorities in mind, we can work with businesses to grow our traditional industries and invest in the sectors that will shape the next century. Our Government has identified the priority sectors with potential for remarkable growth – the sectors in which Victoria is uniquely poised to lead the world: • Medical technology and pharmaceuticals • New energy technologies • Transport, defence and construction technologies • Food and fibre • International education • Professional services. Collectively, these sectors have the potential to drive up to $70 billion in additional economic output by the year 2025, and create over 400,000 new jobs for Victorians. The $200 million Future Industries Fund is turbocharging these priority sectors through job-creating grants to specialist firms and companies. The $500 million Regional Jobs and Infrastructure Fund and the $508 million Premier’s Jobs and Investment Fund also lay the foundation for growth across our entire economy. We have a few advantages under our belt: high-quality infrastructure, skilled workers, world-class liveability, well-connected cities, productive land and resources, all in close proximity to Asia. The growth of our state is reflected in the growth of our construction industry. Accounting for almost 240,000 jobs – or 8.2 per cent of Victoria’s workforce – and contributing $21.6 billion annually to the economy, it’s vital to our state’s future. And as the sector continues to innovate, incorporating new construction methods, materials and technology, the Victorian Government must also look to the future. Our priorities for assisting this sector, outlined in this strategy, are the next step. It’s all securing the high-growth industries of the future, and the jobs that come with them. The Hon. Daniel Andrews MP Premier of Victoria
We will also promote Victoria as a national and regional distribution platform for off-site construction capability, and related intellectual property. We will draw on existing expertise to enable access to advice across a range of areas relevant to off-site construction, including market development and access, regulatory and compliance frameworks, networking and partnering opportunities, and improving links to finance and investment. Attract investment and encourage demonstration projects We will illustrate innovation in off-site construction to build market share, attract investment and stimulate job opportunities in Victoria through trade events, forums and conferences. We will also seek advice from the Construction Technologies Industry Forum on opportunities to encourage demonstration projects to showcase off-site construction technologies with the potential to deliver benefits to consumers, investors, procurement organisations, and construction companies. “Governments play a vital role in supporting technology demonstration on projects where initial developer/builder conservatism, uncertainty and risk-cost aversion is present…. governments around the world can take a proactive role in driving market place change.” Wood Products Victoria Ltd Streamline compliance pathways for new construction materials and products A range of factors drive innovation in construction materials and products, including the invention of new materials, resource constraints, productivity pressures, changing performance standards, and consumer preferences. is also a growing demand to retrofit and upgrade existing building stock with construction materials and products that meet improved environmental performance standards. This has been an important area for jobs growth over recent years. Victorian companies and research organisations have successfully converted ideas into new construction products and materials. This can lead to new job opportunities in the manufacturing and distribution of these products, or ways of working on construction projects. Performance based standards can give integrity to new products and the industry. However, there are challenges which can limit the adoption of new construction materials and products, including: A regulatory system that can be difficult to navigate The need for stronger connections between the materials and product developers and the construction industry Concern that building materials, both imported and domestically produced, may not conform to requirements the National Construction Code. Regulatory and compliance settings must be fair and cost-effective to promote innovation and enable the use of new materials and products. What we plan to do Advocate for a national certification system for high-risk building products, starting with cladding