1. LGIS Infrastructure Predictions for 2015
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Your infrastructure partner.
LGIS Infrastructure Predictions for 2015
or “my 5 cents worth” Adam Matthews

2. PREDICTIONS
“I have seen the future and it is very much like the present, only longer.”
- Kehlog Albran

3. KEY DEMAND DRIVERS Mining construction and investment phase is ending
New public spending is not taking up the slack
Major disaster recovery works completed
Private investment will be slow to move

4. WHERE’S THE
CAVALRY
New State Government will continue existing grant programs …
but no major sugar hit from asset sales
We’re expecting a pause before any new funding programs are planned

5. WHERE’S THE CAVALRY Feds unlikely to announce major new funding
Asset recycling focus option unlikely to play out locally
We don’t see any other major public sector demand in the short to medium term

6. CONSTRUCTION PRICES SLIDE The bottom will not be reached till 2016.
Government reports of construction prices slashed by 50 per cent on 2013 levels.
We see construction prices will continue to search for the bottom of the market.

7. SELLING IT Fierce competition for limited grant funding
Selling infrastructure projects to funders will be vital
Understand their priorities
Its not the project, it’s the policies
… OK, its both

8. BE ENGAGING In volatile times:
Community support for major projects counts
Be engaging
Use innovative strategies to gain public support

9. ASSET MANAGEMENT
LGIS is watching closely the Productivity Commission’s report into NDRRA funding
The report suggests that funding could be linked to standards and quality of asset management
This is with the backdrop of QAO looking towards ISO and we see this as becoming a mandatory requirement in future

10. DISASTER MITIGATION Federal funding % likely to reduce from 75 to 50
NDRRA funding reform will push greater responsibility onto asset owners
Ensure your assets are resilient and sustainable
More pressure for Councils to fund ‘betterment’
Look again at disaster mitigation projects
Review long term planning for increased risk of flooding and storm surge

11. MOBILES + BIG DATA Efficiencies through smart systems and mobile apps
Help customers help themselves
Use big data to inform better decisions
Defer infrastructure through better demand management
Get more value from capital $

12. DRONING ON The drone revolution is just beginning to be imagined
Camera equipment and image processing is dramatically improving too
CASA working group exists
Low hanging fruit - DM and road condition assessments

13. I HAVE THE POWER
Long term forecasts predict annual increase in power costs of 5.5%
LGIS is working with UQ which are inventing new thermal dynamic solutions for small communities, including parabolic, geothermal and solar thermal
Local governments can benefit from embedded energy solutions

14. POWER TO THE PEOPLE
Decentralised power generation and storage technology
Local networks and load sharing grids
Future role for community level smart power grids
Need to build the ‘smarts’ in the smart grids

15. NON-INFRASTRUCTURE
Broncos?
… not a safe bet