It’s a great time to operate as a contractor in Western Australia. In recent years, the defence industry has been positioning itself to get a bigger share of the defence contracts in Australia. This could end up being great news for contractors and other peripheral service providers in WA.
This story is constantly unfolding, but the news is increasingly positive for WA contractors. In particular, navy shipbuilding contracts are sure to create new employment opportunities and a strong economic stimulus for the state. And take it from us: you don’t have to be a primary service provider to benefit from a surge in a particular industry. On the contrary, what’s good for one industry is often good for a wide spectrum of supporting industries as well.
These Are the Main Defence Contracts at Stake
One of the primary industries to benefit from the increase in domestic defence contracts is shipbuilding. Last year, there was about $40 billion up for grabs in the Maritime Renewal Project. A major portion of this was awarded to Western Australia contracts.
One of the big winners was the Australian shipbuilder, Austal, which has a production facility in Henderson, WA. They received more than $300 million for the construction and maintenance of upwards of 20 Pacific Patrol Boats. But they’re only one of about 180 companies that have secured direct defence contracts.
With so many contracts landing in our state, it’s safe to say that local contractors are going to be busy purchasing materials, hiring skilled workers and building newer, more sophisticated manufacturing facilities. This bodes well for the future of WA, as well as for the people who live and work here.
Here’s How a Boom in One Industry Affects the State as a Whole
If your skillset doesn’t directly line up with shipbuilding – or if you aren’t currently employed by one of the 180 or so firms that have secured contracts – then you may feel that this news doesn’t really affect you. But that’s because you haven’t taken the multiplier effect into account.
The multiplier effect applies to private homes and large-scale economies, alike. According to Economics Online, when new demand enters a circular flow, the effect of that demand is multiplied. On a small scale, one person has access to more cash flow, and so they end up spending more money. The money they spend becomes another person’s income, and the effect continues.
When it comes to WA securing new defence contracts, new demand has brought new funds into the state from elsewhere. A portion of these funds goes into hiring new employees, who are living and spending money in WA. Other portions will be used to charter peripheral services. Everyone benefits in the long run.
New Defence Contracts Will Increase Demand for Logistical and Transport Services
The multiplier effect of these defence contracts will be significant, to say the least. Orders placed by the primary defence clients will prompt local contractors to purchase inventory and equipment – and that’s without even considering the additional staff that will be needed to complete these projects on schedule.
And the need for local and inter-state transport is also going to increase. This is where Fleetspec Hire comes into play. We maintain a comprehensive fleet of trucks that are up to the task. Whether you need an eight-tonne crew cab truck for hauling oversized equipment or a truck-mounted crane for some heavy-duty lifting and assembly, we’ve got you covered.
Here’s a quick overview of the types of trucks you’ll find in our fleet:
- Tray trucks – Our flat tray trucks are ideal for hauling heavy-duty, oversized equipment. We offer a range of models that have seating for anywhere from three to seven passengers. That means you can send an entire crew with the materials you’re transporting to get the job done more efficiently.
- Tilt Tray Trucks – Our seven-tonne tilt tray trucks make loading and unloading easy. Don’t settle for an inferior truck when a tilt is what you really need. And thanks to our affordable hire options, you don’t have to worry if you don’t have a truck like this in your own fleet.
- Tipper Trucks – Our tipper trucks range from two-tonne to 16-tonne models, so it’s safe to say that we have the right truck for the transport job you have in mind. These side-loaders are the workhorses of the mining industry, but they can also come in handy for moving machinery and other materials needed to fulfil your defence contract. We supply you with ramps as well.
- 4×4 Trucks – If you’re building new facilities to fulfil new contracts, you may find yourself in a position where you’ll be better served by a four-wheel-drive vehicle. We have several models available, complete with flatbeds, ABS brakes and seating for three to seven passengers.
- Crane-Mounted Trucks – Also known as a Hiab, these trucks are absolutely invaluable in certain industries. Hiabs are perfect for lifting and transport. The crane can go anywhere the truck goes – and that’s saying something, as our Hiabs are heavy-duty rollers. We have the largest and best range of crane-mounted trucks in Perth, so get in touch with us if you have a complex lifting-and-transport job to take care of.
Fleetspec Hire Can Help You Stay Afloat during this Surge in Demand
As new defence contracts continue pouring into WA, small- to mid-sized contractors are going to experience great growth and expansion. Growing pains are part of the equation for small contractors, but you don’t have to let this stop you seizing these new opportunities.
Any time there is a surge in demand, you may find yourself in a situation where you have to turn down potential contracts. That’s the last thing that any contractor wants to do. Thanks to our wide selection of heavy-duty trucks, you don’t have to let limitations in your own fleet stop you from taking on new contracts.
If you have some complex transport requirements on the horizon, there’s a good chance that we can assist. Have a look at the vehicles detailed on our site, and don’t hesitate to get in touch if you have any specific questions or concerns.