Deloitte forecasts $100 billion of projects in WA’s pipeline but not all are guaranteed

More than $100 billion of major projects are under consideration in WA, with mining topping the list in Deloitte’s quarterly round up of investment. But about 80 per cent of that proposed spending is rated only as “possible”, the report shows, meaning uncertainty hangs over whether most of the cash will ever flow. Major projects under construction in WA hit $51.6b at the end of December, up 12 per cent from a year earlier. Transport and mining set the pace as activity expanded, while engineering work lifted 23 per cent. Deloitte Access Economics partner Stephen Smith said business investment in Australia grew 8.9 per cent in 2023, although the consultancy forecast that would slow to 2.7 per cent this year. Mr Smith said a downturn in the business cycle was starting to take a toll on investment. Profit growth had slowed and capacity utilisation had eased. But he said critical minerals and the transition to net zero was a bright spot for the longer term. “The massive pipeline of transport infrastructure that is under construction or committed — even despite the recent cuts and re-prioritisation of spending — will also continue to support activity through this leg of the business cycle,” Mr Smith said. Nationally, Deloitte’s database of projects shrunk 0.8 per cent in the quarter to $948b. Deloitte estimated WA’s energy industry pipeline was $6b, across 16 projects. Five office developments were on the radar too.