If I’ve taken anything from the last couple of months of press conferences and announcements, it’s that the Australian Government is relying on the civil infrastructure industry to support the country through the economic turbulence caused by COVID-19.
Our Federal Treasurer’s recent budget update cemented support for these industries through the recommitment of a $100 billion pipeline of investment in transport infrastructure.
A further $2 billion over three years for priority regional and urban transport infrastructure, and $1.9 billion for other projects including the Sydney Metro-Western Sydney Airport rail project has also been committed so far.
And there’s indication that the full 2020-21 Budget on 6 October will include further funding to boost infrastructure investment and performance nationally.
Of course, other sectors across the country are also performing strongly.
Hard rock mining has continued to thrive, as gold provides a safe haven for investors during times of economic instability and a safeguard against inflation. In July, the precious metal has been trading at its highest level and has just eclipsed its previous 2011 high to trade at $2707 an ounce in Australian dollar terms.
With the large number of projects propping up the economy, we’ve seen an increasing number of contractors knocking on the door seeking finance for gear to get the job done.
At Iron Capital, we’re well positioned to assist clients who may not fit the traditional guidelines set by many mainstream financiers. With a strong understanding of the industries we work in, it affords us the flexibility to work with our brokers to support clients obtain approval where traditional financiers may shy away.
In next month’s edition of the Broker Newsletter, we’ll have a Q&A with Brent Starrenburg, Head of Connective Asset Finance. He’ll be discussing key industries to target for the new financial year, what growth in asset finance he’s seeing at an aggregator level, plus feedback on the main challenges for new and existing brokers in 2020-21.
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