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Working together to build
a sustainable Australia
VENTURING INTO
THE NEW ERA OF
INFRASTRUCTURE
August 2020
Copyright © 2020 Hadron Group Pty Ltd. All rights reserved.
This document is subject to copyright. No part may be reproduced by any process, nor may any other
exclusive right be exercised, without the prior written permission of Hadron Group Pty Ltd.
About Hadron Group
Hadron is a leading management
consultancy, assisting a wide range of
government, non-government
organisations and industry clients to
establish and manage major
infrastructure and social projects and
programs.
We work collaboratively with our
clients, putting their needs at the
forefront of what we do. We
continuously seek feedback and
constantly evaluate our work to meet
our clients’ needs and expectations.
| i | Venturing into the New Era of Infrastructure
Executive Summary
2020 has been unexpectedly disruptive, as we collectively respond to a global pandemic, fires,
floods and economic volatility. Emerging from this, we have changed our behaviours and
expectations, with these changes having the potential to dramatically alter the way we live, and the
way our cities and towns are designed.
The infrastructure sector will play a vital role in responding to these changes, and will need to keep
pace with major trends to facilitate growth, wellbeing and access across the Australian community.
This paper advocates for government, across all levels, to act now to maximise the
benefits of these changes.
We see an acceleration of three major trends
Our population will grow,
but it will be slower and
more dispersed than
previous forecasts
Services will be provided
at home, with more focus
on strengthening the
community
A push for a more resilient
economy that can
withstand global and
environmental shocks
Infrastructure will need to evolve to meet this change
Capital investment in transport is likely to have peaked in the near term, as
peoples travel demand and choices change
Health care will build capacity to prepare for future ‘black swan’ events,
with increasingly tailored services
Essential services require greater environmental resilience, cost efficiency
and capacity to meet the demand of a more dispersed population
Education will digitise, particularly tertiary and adult education. Facilities
will become more dispersed to meet population shifts
Venturing into the New Era of Infrastructure
We advocate for governments to:
REALIGN SERVICE DELIVERY
and infrastructure investment to meet shifting demand and community expectations
AGGRESSIVELY PURSUE DIGITAL OPPORTUNITIES
(e.g. the latest NSW Digital Restart Fund) to drive efficiencies and innovation
BUILD DATA COLLECTING INFRASTRUCTURE
that allows data to be collected for future planning and delivery
DESIGN TAILORED INFRASTRUCTURE
that enables better services, particularly in health, education, justice, aged care,
and disability services
CREATE SURGE CAPACITY
in government services to handle “black-swan’’ events
INVEST IN ENERGY, FREIGHT, PRODUCTIVITY
to provide affordable, sustainable, and resilient essential services across
our communities
REDUCE RED TAPE
to allow businesses to be flexible to changing demand
Venturing into the New Era of Infrastructure
Contents
Heading into the unknown....................................................................1
Three major trends will impact the infrastructure sector.........3
What does this mean for each infrastructure sector?..............10
What is the role of government?......................................................13
| iv | Venturing into the New Era of Infrastructure
| 1 | Venturing into the New Era of Infrastructure
Heading into the
unknown
Little more than six months into 2020 and it’s
clear that the expectations we once had for the
year have fundamentally shifted. In the wake of
the bushfires, floods, and now a global health
pandemic, Australian’s have been forced to
learn to live with sudden and constant change.
These events can profoundly impact the
infrastructure sector. Not only have they
highlighted the need for resilience and
connectivity (both digital and physical), the
very baseline assumptions which much of our
infrastructure planning is based on are being
challenged. We stand at a crossroads where
population trends, lifestyle expectations and
economic structures are dramatically shifting.
Whether this is a temporary pause or a lasting
trend is unclear – and something that only time
will tell. However, it provides a rare
opportunity to re-imagine the future potential
of Australia’s infrastructure sector; one that is
resilient, adaptable, and continues to support
the high quality of life that Australian’s have
come to expect and enjoy.
There is always a silver-
lining
Many of us find ourselves in a rare position
where things that we thought were certain
have been flipped on their head, and things that
we were told would never happen have
become the norm.
These new norms have come about not
because of new policy, changing market
opportunities or advances in technology –
although they did help. These new norms have
1
KPMG Australia, She’s Price(d)less (2019), page 29
emerged because COVID-19 has forced us to
break down barriers and re-think attitudes that
previously meant the answer “that’s not the way
things are done here” was a sufficient
explanation.
The obvious example that is frequently
discussed is working from home. Companies
previously sung their own praises regarding
their policies on flexibility, but many failed to
legitimately realise this in practice. These
attitudes disproportionately disadvantaged
women and primary carers1
.
There are many other examples across all
industries where we have experienced seismic
shifts in the way we live. Examples include tele-
health, remote education, court hearings by
phone, and even, to an extent, construction
sites.
While the last few months were not always
easy, it has provided a rare opportunity to
reflect on what matters and what works, and to
calibrate our lives to focus energy on the things
that bring us the most benefit. The
consequences of a collective re-evaluation of
our behaviours will be felt across our
communities, with flow on impacts to the way
infrastructure and government services are
provided.
At least some of the
changes are here to stay
Travel data for NSW suggests there is already a
shift emerging for several work and lifestyle
patterns when compared to a baseline of
January and February 2020 (see figure 1
overpage). There is a significant reduction in
the use of transport and attendance at
workplaces, and a smaller, but persistent,
reduction in retail and recreational activities.
These trends persisted beyond the easing of
restrictions in NSW in early June 2020.
| 2 | Venturing into the New Era of Infrastructure
Figure 1: Community mobility in NSW – following lifting of restrictions
Source: Google Community Mobility Report, 7 June 2020 to 19 July 2020.
Note: NSW data used rather than Australian data to exclude the impact of Victoria’s restrictions, introduced in early July, 2020.
It is important to note that across Australia, the
mobility trends appear similar regardless of the
level of restrictions imposed, suggesting that
some of these trends are likely to be semi-
permanent and are induced by changes in
behaviours, rather than changes forced upon
the population.
What is the role of government in harnessing
the benefits from these changes?
We are at a unique point in time where we have been afforded the opportunity to pause and
reflect. If we do not want to return to the status quo, now is the time to shape a more balanced,
accessible, and equal future – where our work and home lives are harmonised, and full
community participation is within reach.
All levels of government can play a role in realising the benefits of these changes for the
community. This could be in many forms, any may include incorporating new measures of public
expectations and community benefits in future infrastructure planning, or by ensuring
economic and legal structures facilitate flexibility for businesses to respond to an increasingly
unexpected future.
This paper identifies the trends we are seeing emerge or accelerate, and proposes
how government responses can drive these changes to see benefits in the way
Australians live.
| 3 | Venturing into the New Era of Infrastructure
Three major trends will impact the
infrastructure sector
Early behavioral patterns suggest that there will be an acceleration of the following three major
trends, as people change their expectations and ways of working – and their ways of living:
Population growth will be slower than previously
forecast, and more widely dispersed
Proliferation of tailored goods and services
towards home living and working, re-establishing
the community
A push for a more resilient economy that can
withstand global and environmental shocks
| 4 | Venturing into the New Era of Infrastructure
TREND 1: Population growth is
slower, but more widely dispersed
Population trends will diverge from previous forecasts, with slower growth, and growth away from
major cities.
Capital cities
Slower growth than expected in
major cities provides a chance for
infrastructure to catch up
Regional centres
Accelerated regional growth requires
additional investment to match
demand
Remote regions
Continued population decline creates
complexities for maintaining living
standards
| 5 | Venturing into the New Era of Infrastructure
Capital cities
The closure of international borders and the
impact of reduced economic outlook on fertility
rates means that Australia’s population is
expected to grow by only 0.6 per cent in 2020-
21, the lowest rate since 1916-17 in WWI2
.
This is compared to previous estimates of 1.7
per cent3
, with the reduction primarily felt in
capital cities, where 79 per cent of growth
occurred in recent years4
.
This creates breathing room for infrastructure
planning, providing the chance to meet
maintenance backlogs, upgrade legacy assets
and improve asset management practices.
Regional centres Remote regions
Regional areas will see increased population
growth, as those who have embraced the new
freedoms of remote working and digital
connectivity seek the improved lifestyle and
affordability offered by our regional
communities. This growth will be faster than
forecast and accelerate above the 24 per cent
growth experienced in the ten years to 20195
.
A higher level of growth will be focused in
regional cities and satellite towns within driving
distance of capital cities, providing flexibility to
realise regional lifestyles while remaining
connected to the capital.
Infrastructure investment is needed to meet
this demand in satellite towns and regional
cities, ensuring digital connectivity, access to
services and housing can keep pace with the
new, increased, level of growth. This will see
both new build projects, and upgrades to legacy
infrastructure.
The proportion of Australian’s living in small
towns, rural and remote communities will
continue to decline, below its current share
of 12 per cent of the population6
. This
reinforces the need for investment that
ensures these communities do not continue
to experience a lower quality of life than
more populous areas.
Remote areas can be supported by digital
technology and remote delivery of services,
including innovative models to deliver
distance education and health care, coupled
with improvements to physical
infrastructure services, such as water and
energy services and transport connectivity.
However - meeting the varied and often
unique infrastructure needs of the small and
dispersed remote populations will be an
ongoing (and expensive) challenge.
2
Australian Government, Economic and Fiscal Update – Prat 2 Economic outlook, July 2020
3 Budget 2019-20 Overview, April 2019
4
Australian Bureau of Statistics, 2020, Regional Population Growth Australia, 2018-19, cat no. 3218.0, viewed 12 August 2020,
https://www.abs.gov.au/ausstats/abs@.nsf/0/B7616AB91C66CDCFCA25827800183B7B?Opendocument
5
Infrastructure Australia, Australian Infrastructure Audit, 2019, pg 128
6 Infrastructure Australia, Small towns, rural and remote areas – Fact Sheet, August 2019
| 6 | Venturing into the New Era of Infrastructure
TREND 2: Proliferation of tailored
services in the home and community
After spending more time at home, many people have realised how convenient life can be, re-
establishing expectations for home life and creating a renewed focus on the local community.
Services at the
home
People expect to access services from
home, and businesses will adapt to
meet this new demand
Placemaking &
community
Placemaking, local amenity and
community tailoring will be expected
to be met by government
| 7 | Venturing into the New Era of Infrastructure
Services at the home
Australian’s will increasingly expect and rely on the following at-home services:
7-day deliveries
Australia Post introduced a seven-day
delivery service in April, and has flagged
the potential for this to last for years to
come7
.
Eating out at home
‘Almost ready’ meal services have
become more popular, with services like
Marley Spoon and Hello Fresh offering
food delivery with easy to follow recipes.
Takeaway is now offered in 40 per cent
of restaurants that did not offer the
service before8
.
Health care at home
One in six Australian’s accessed tele-
health in April 20209
. While many
providers have returned to on-site
offerings, the convenience factor is likely
to create continued demand for more
flexible health service offerings.
Home exercise
Google searches for home exercise
reached an all-time high in April 2020,
and continue to trend at 61% above the
levels averaged before COVID10
.
Placemaking & community
As we spend more time in our local areas,
people will expect greater local amenity and
community tailoring from infrastructure
investments.
Local and state governments will play a key role
in meeting community expectations for local
amenity through placemaking and multi-
faceted planning models, with investments in
infrastructure needing to consider
comprehensive approaches to delivering local
benefit in tandem with the traditional
infrastructure services.
This includes improved open space, cycleways
and walking paths alongside road or rail
investments and community facilities integrated
with local health services.
Community consultation and involvement in
planning will become more important, as
residents seek to maintain the sense of identity
and enhance the liveability of the area - including
employment opportunities.
This is a reversal of historical trends which saw a 19
per cent decline in Australians involved in social
groups, and a 6 per cent decline in people involved in
sport or recreational activity between 2010 and
201411
.
7
Sydney Morning Herald, Australia Post Looks at delivering seven days a week as online demand breaks records, 29 July 2020
8
ABC News, After coronavirus restricts lift, cafes and restaurants will change, 16 May 2020
9 Australian Bureau of Statistics, 2020, 4940.0 – Household Impacts of Covid-19 Survey, 29 April – 4 May 2020
10
Google Trends “Home Exercise” Australia, https://trends.google.com/trends, accessed 30 July 2020
11 Australian Bureau of Statistics, 2014, General Social Survey, cat no. 4159.0, viewed 12 August 2020,
https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/4159.02014?OpenDocument
| 8 | Venturing into the New Era of Infrastructure
TREND 3: A push for a more resilient
economy, with a domestic focus
From drought, bushfires, floods, global political unrest and a pandemic, domestic resilience is as
important now as ever before.
Supply chains
Building supply chain resilience and
self-reliance will protect against global
and environmental threats
Supply chains
Digitisation
Digital acceleration needs to be
matched by advancements in
connectivity, storage, and security
| 9 | Venturing into the New Era of Infrastructure
Supply chains Digitisation
The pandemic highlighted the vulnerability of
global supply chains, and our dependence on
imports has become resoundingly clear.
Supply chain impacts of COVID were felt
across industries, including rail, construction
and health care, as supplies from global
manufacturing plants shutdown12
.
At the same time, many domestic supply
chains, particularly in agriculture and food
production, have been battered after recent
drought, floods and fires.
Investment in domestic freight and supply
chains, partnered with reforms that empower
R&D and supply chain efficiency, will ensure
that we can continue to meet our needs and
are resilient to global and environmental
shocks.
However, connectivity and access to global
markets will continue to be essential to
manage fluctuations in local production
(particularly given our dry and unpredictable
environment), and to meet our lifestyle
expectations for low cost, high quality
manufactured goods that are less
competitive to produce domestically.
In 2020, digital activity contributed $426
billion to Australia’s economy, 35 per cent
higher than in 201813
. The expansion of
digital activity will continue to accelerate,
with the way we work, live and interact
becoming more digitally dependent.
Network connectivity and data
storage will continue to be crucial to
supporting our economy. As more
businesses move online and remote working
and learning becomes a way of life, digital
reliability will be critical to the efficiency and
effectiveness of operations. This includes
speed of connectivity, but also the size –
particularly as workers seek to connect to
data storage from different sites.
Digital security will be a greater focus
for many organisations, and for
individuals, as Australians become
increasingly concerned with privacy and our
growing digital footprint. The Australian
government estimates that cybercrime costs
Australians more than $1 billion each year14.
12
Infrastructure Magazine, How the sector is managing the COVID-19 crisis, Accessed 12 August,
https://infrastructuremagazine.com.au/2020/05/07/how-the-sector-is-managing-the-covid-19-crisis/
13
AustCyber, Australia’s Digital Trust Report 2020, July 2020
14
Department of Industry, Science, Energy and Resources, Why does cyber security matter? Accessed 30 July 2020,
https://www.industry.gov.au/data-and-publications/australias-tech-future/cyber-security/why-does-cyber-security-matter
| 10 | Venturing into the New Era of Infrastructure
What does this mean for each
infrastructure sector?
The shift in the way we live and work will have flow on impacts to the infrastructure needs of the
community, marking a distinct change in the way infrastructure is planned and delivered across our
communities. The legacy impacts for infrastructure planning will be felt across the sector.
Transport
Capital investment in transport is likely to
have peaked in the near term, peoples travel
demand and choices change
Public transport demand
There will be a permanent reduction in public
transport demand, as more work from home and
those that do commute choose to drive or
rideshare. This means less focus on investing in
upgrades to public transport – a distinct shift from
the mega-rail projects of the 2010s.
PT timetabling
Those that do continue to catch public transport
are likely to prefer to travel at off-peak periods
to avoid crowding, creating more evenly spread
passenger demand over the day. This will have
flow on impacts to asset maintenance with
reduced asset ‘down-time’.
Network connectivity
As fewer people travel for work purposes, their
priorities will shift to connectivity – being able to
get where you need. Recent years have seen
transport planning focus on moving populations
to the CBD and back – which will be less of a
focus going forward.
Ridesharing
As the value people place on convenience
increases, the demand for ridesharing
services will grow. Ridesharing and car-share
services such as Go-Get and Car Next Door
provide flexibility at a lower cost than car
ownership.
“Governments’ have an opportunity to reshape commuter behaviour and reassess
outdated policies…. As economic activity rebuilds and population growth resumes post-
COVID, governments should focus on measures that lock in positive changes to travel
behaviour and service provision.”
Infrastructure Partnerships Australia, Australian Travel Time Metric – 2020 edition
| 11 | Venturing into the New Era of Infrastructure
Healthcare
Health care will build capacity to prepare for
future ‘black swan’ events, with increasingly
tailored services
Capacity and emergency planning
New awareness of the risk of infectious
diseases and potential future pandemics on
healthcare capacity will see an increase in ICU
and hospital bed-capacity.
Short term capacity planning will be
incorporated into routine emergency response
planning – which may include dynamic models
that allow rapid upgrade of capacity by
‘switching’ wards from non-urgent care to
infection control and ICU wards, or the
introduction of shift planning that minimises
crossover of staff to reduce the impact of
isolation on operations.
Out-of-hospital care
More care will be provided outside of the
hospital setting as a way of managing the risk
of future ‘black swan’ health events on
operations.
Patients will also expect more flexible care,
including tele-health, and close-to-home
services. This reflects both a return to the
community and legacy fears from the COVID
experience – with ED presentations dropping
40 per cent during COVID15
.
This will primarily be seen in non-urgent care
that can most easily be separated from the
hospital setting, such as day surgery,
community birthing centres, and tele-health
for consultations where physical contact is not
required.
Protecting the elderly
COVID exposed Australia’s approach to health
care for the elderly, particularly in the live-in
aged care sector, which saw some of the highest
infection rates in the country. There will be
significant changes to the sector and reforms to
workplace practices.
Many families will choose to care for loved ones
at home, or seek smaller, community-based
facilities. There will also be a greater focus on
introducing models for safely maintaining human
contact for our elderly community, including
digital education.
15
Insight Magazine, COVID fears drive patients to avoid doctors, hospitals, May 2020
| 12 | Venturing into the New Era of Infrastructure
Essential
services
Essential services require greater
environmental resilience, cost efficiency and
capacity to meet the demand of a more
dispersed population
Resilience of essential services
There will be a continued focus on the ability to
provide ongoing waste, water and energy
services to Australians, particularly in the face of
recent droughts, floods and storms.
Investment in everything digital
Investment is required to ensure the network is
reliable and secure, and that it can reach where
Australians live. Data storage and security will
also be increasingly important, as more people
connect for work and leisure remotely.
Supply to meet population movements
Investment in essential services will need to
ensure service provision for a more dispersed
population – particularly in areas that grow
faster than previously expected, such as regional
centers.
The cost of essential services will also be a focus,
particularly energy, which has had major impacts
to the Australian cost of living in recent years.
Education
Education will digitise, particularly tertiary and
adult education. Facilities will become more
dispersed to meet population shifts
Continuous learning online
Professional development will become more of
a focus, with education providers offering ‘micro
credentials’ to support employees as their
careers evolve. These courses will be flexible and
entirely online.
Decline of the CBD childcare model
As people shift to working from home or locally
for more of their time, CBD childcare centres
will be less convenient. In its place, childcare
services close to the home, particularly those
with is a strong sense of community, will need to
increase capacity to meet growing demand.
Community-based schooling
Local schools that facilitate a strong sense of
community and local connection will thrive.
Legacy crowding fears from COVID will leave
parents uncomfortable with their children
catching public transport to distant suburbs for
high school, resulting in an increased need to
increase existing school capacity in suburbs and
regional centres.
| 13 | Venturing into the New Era of Infrastructure
What is the role of government?
We should re-consider the government’s role in facilitating these trends, assist businesses and
workers to gradually shift to meet these new demands, and harness the potential in them to create
better lifestyle and communities for Australia.
Better yet, the Government can lead by example, by:
– Realigning service delivery and infrastructure investment to meet shifting demands and
community expectations
– Aggressively pursuing digital opportunities (e.g. the latest Digital Restart Fund) to drive
efficiencies and innovation
– Building infrastructure that allows data to be collected for future planning and delivery
– Designing infrastructure that facilitates tailored and better services, particularly in health,
education, justice, aged care, and disability services
– Creating surge capacity in government services to handle “black-swan’’ events
– Investing in additional energy, freight and productivity capacity to provide affordable
sustainable, and resilient essential services across our communities
– Reducing red-tape and removing barriers for businesses to flexibly respond to changing
demand.
| 14 | Venturing into the New Era of Infrastructure
Contact Us
Level 3, 223 Liverpool St,
Hyde Park, Sydney,
NSW 2010
1300 478 433
hadrongroup.com.au

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Venturing into the new era of infrastructure for Australia

  • 1. Working together to build a sustainable Australia VENTURING INTO THE NEW ERA OF INFRASTRUCTURE August 2020
  • 2. Copyright © 2020 Hadron Group Pty Ltd. All rights reserved. This document is subject to copyright. No part may be reproduced by any process, nor may any other exclusive right be exercised, without the prior written permission of Hadron Group Pty Ltd. About Hadron Group Hadron is a leading management consultancy, assisting a wide range of government, non-government organisations and industry clients to establish and manage major infrastructure and social projects and programs. We work collaboratively with our clients, putting their needs at the forefront of what we do. We continuously seek feedback and constantly evaluate our work to meet our clients’ needs and expectations.
  • 3. | i | Venturing into the New Era of Infrastructure Executive Summary 2020 has been unexpectedly disruptive, as we collectively respond to a global pandemic, fires, floods and economic volatility. Emerging from this, we have changed our behaviours and expectations, with these changes having the potential to dramatically alter the way we live, and the way our cities and towns are designed. The infrastructure sector will play a vital role in responding to these changes, and will need to keep pace with major trends to facilitate growth, wellbeing and access across the Australian community. This paper advocates for government, across all levels, to act now to maximise the benefits of these changes. We see an acceleration of three major trends Our population will grow, but it will be slower and more dispersed than previous forecasts Services will be provided at home, with more focus on strengthening the community A push for a more resilient economy that can withstand global and environmental shocks Infrastructure will need to evolve to meet this change Capital investment in transport is likely to have peaked in the near term, as peoples travel demand and choices change Health care will build capacity to prepare for future ‘black swan’ events, with increasingly tailored services Essential services require greater environmental resilience, cost efficiency and capacity to meet the demand of a more dispersed population Education will digitise, particularly tertiary and adult education. Facilities will become more dispersed to meet population shifts
  • 4. Venturing into the New Era of Infrastructure We advocate for governments to: REALIGN SERVICE DELIVERY and infrastructure investment to meet shifting demand and community expectations AGGRESSIVELY PURSUE DIGITAL OPPORTUNITIES (e.g. the latest NSW Digital Restart Fund) to drive efficiencies and innovation BUILD DATA COLLECTING INFRASTRUCTURE that allows data to be collected for future planning and delivery DESIGN TAILORED INFRASTRUCTURE that enables better services, particularly in health, education, justice, aged care, and disability services CREATE SURGE CAPACITY in government services to handle “black-swan’’ events INVEST IN ENERGY, FREIGHT, PRODUCTIVITY to provide affordable, sustainable, and resilient essential services across our communities REDUCE RED TAPE to allow businesses to be flexible to changing demand
  • 5. Venturing into the New Era of Infrastructure Contents Heading into the unknown....................................................................1 Three major trends will impact the infrastructure sector.........3 What does this mean for each infrastructure sector?..............10 What is the role of government?......................................................13
  • 6. | iv | Venturing into the New Era of Infrastructure
  • 7. | 1 | Venturing into the New Era of Infrastructure Heading into the unknown Little more than six months into 2020 and it’s clear that the expectations we once had for the year have fundamentally shifted. In the wake of the bushfires, floods, and now a global health pandemic, Australian’s have been forced to learn to live with sudden and constant change. These events can profoundly impact the infrastructure sector. Not only have they highlighted the need for resilience and connectivity (both digital and physical), the very baseline assumptions which much of our infrastructure planning is based on are being challenged. We stand at a crossroads where population trends, lifestyle expectations and economic structures are dramatically shifting. Whether this is a temporary pause or a lasting trend is unclear – and something that only time will tell. However, it provides a rare opportunity to re-imagine the future potential of Australia’s infrastructure sector; one that is resilient, adaptable, and continues to support the high quality of life that Australian’s have come to expect and enjoy. There is always a silver- lining Many of us find ourselves in a rare position where things that we thought were certain have been flipped on their head, and things that we were told would never happen have become the norm. These new norms have come about not because of new policy, changing market opportunities or advances in technology – although they did help. These new norms have 1 KPMG Australia, She’s Price(d)less (2019), page 29 emerged because COVID-19 has forced us to break down barriers and re-think attitudes that previously meant the answer “that’s not the way things are done here” was a sufficient explanation. The obvious example that is frequently discussed is working from home. Companies previously sung their own praises regarding their policies on flexibility, but many failed to legitimately realise this in practice. These attitudes disproportionately disadvantaged women and primary carers1 . There are many other examples across all industries where we have experienced seismic shifts in the way we live. Examples include tele- health, remote education, court hearings by phone, and even, to an extent, construction sites. While the last few months were not always easy, it has provided a rare opportunity to reflect on what matters and what works, and to calibrate our lives to focus energy on the things that bring us the most benefit. The consequences of a collective re-evaluation of our behaviours will be felt across our communities, with flow on impacts to the way infrastructure and government services are provided. At least some of the changes are here to stay Travel data for NSW suggests there is already a shift emerging for several work and lifestyle patterns when compared to a baseline of January and February 2020 (see figure 1 overpage). There is a significant reduction in the use of transport and attendance at workplaces, and a smaller, but persistent, reduction in retail and recreational activities. These trends persisted beyond the easing of restrictions in NSW in early June 2020.
  • 8. | 2 | Venturing into the New Era of Infrastructure Figure 1: Community mobility in NSW – following lifting of restrictions Source: Google Community Mobility Report, 7 June 2020 to 19 July 2020. Note: NSW data used rather than Australian data to exclude the impact of Victoria’s restrictions, introduced in early July, 2020. It is important to note that across Australia, the mobility trends appear similar regardless of the level of restrictions imposed, suggesting that some of these trends are likely to be semi- permanent and are induced by changes in behaviours, rather than changes forced upon the population. What is the role of government in harnessing the benefits from these changes? We are at a unique point in time where we have been afforded the opportunity to pause and reflect. If we do not want to return to the status quo, now is the time to shape a more balanced, accessible, and equal future – where our work and home lives are harmonised, and full community participation is within reach. All levels of government can play a role in realising the benefits of these changes for the community. This could be in many forms, any may include incorporating new measures of public expectations and community benefits in future infrastructure planning, or by ensuring economic and legal structures facilitate flexibility for businesses to respond to an increasingly unexpected future. This paper identifies the trends we are seeing emerge or accelerate, and proposes how government responses can drive these changes to see benefits in the way Australians live.
  • 9. | 3 | Venturing into the New Era of Infrastructure Three major trends will impact the infrastructure sector Early behavioral patterns suggest that there will be an acceleration of the following three major trends, as people change their expectations and ways of working – and their ways of living: Population growth will be slower than previously forecast, and more widely dispersed Proliferation of tailored goods and services towards home living and working, re-establishing the community A push for a more resilient economy that can withstand global and environmental shocks
  • 10. | 4 | Venturing into the New Era of Infrastructure TREND 1: Population growth is slower, but more widely dispersed Population trends will diverge from previous forecasts, with slower growth, and growth away from major cities. Capital cities Slower growth than expected in major cities provides a chance for infrastructure to catch up Regional centres Accelerated regional growth requires additional investment to match demand Remote regions Continued population decline creates complexities for maintaining living standards
  • 11. | 5 | Venturing into the New Era of Infrastructure Capital cities The closure of international borders and the impact of reduced economic outlook on fertility rates means that Australia’s population is expected to grow by only 0.6 per cent in 2020- 21, the lowest rate since 1916-17 in WWI2 . This is compared to previous estimates of 1.7 per cent3 , with the reduction primarily felt in capital cities, where 79 per cent of growth occurred in recent years4 . This creates breathing room for infrastructure planning, providing the chance to meet maintenance backlogs, upgrade legacy assets and improve asset management practices. Regional centres Remote regions Regional areas will see increased population growth, as those who have embraced the new freedoms of remote working and digital connectivity seek the improved lifestyle and affordability offered by our regional communities. This growth will be faster than forecast and accelerate above the 24 per cent growth experienced in the ten years to 20195 . A higher level of growth will be focused in regional cities and satellite towns within driving distance of capital cities, providing flexibility to realise regional lifestyles while remaining connected to the capital. Infrastructure investment is needed to meet this demand in satellite towns and regional cities, ensuring digital connectivity, access to services and housing can keep pace with the new, increased, level of growth. This will see both new build projects, and upgrades to legacy infrastructure. The proportion of Australian’s living in small towns, rural and remote communities will continue to decline, below its current share of 12 per cent of the population6 . This reinforces the need for investment that ensures these communities do not continue to experience a lower quality of life than more populous areas. Remote areas can be supported by digital technology and remote delivery of services, including innovative models to deliver distance education and health care, coupled with improvements to physical infrastructure services, such as water and energy services and transport connectivity. However - meeting the varied and often unique infrastructure needs of the small and dispersed remote populations will be an ongoing (and expensive) challenge. 2 Australian Government, Economic and Fiscal Update – Prat 2 Economic outlook, July 2020 3 Budget 2019-20 Overview, April 2019 4 Australian Bureau of Statistics, 2020, Regional Population Growth Australia, 2018-19, cat no. 3218.0, viewed 12 August 2020, https://www.abs.gov.au/ausstats/abs@.nsf/0/B7616AB91C66CDCFCA25827800183B7B?Opendocument 5 Infrastructure Australia, Australian Infrastructure Audit, 2019, pg 128 6 Infrastructure Australia, Small towns, rural and remote areas – Fact Sheet, August 2019
  • 12. | 6 | Venturing into the New Era of Infrastructure TREND 2: Proliferation of tailored services in the home and community After spending more time at home, many people have realised how convenient life can be, re- establishing expectations for home life and creating a renewed focus on the local community. Services at the home People expect to access services from home, and businesses will adapt to meet this new demand Placemaking & community Placemaking, local amenity and community tailoring will be expected to be met by government
  • 13. | 7 | Venturing into the New Era of Infrastructure Services at the home Australian’s will increasingly expect and rely on the following at-home services: 7-day deliveries Australia Post introduced a seven-day delivery service in April, and has flagged the potential for this to last for years to come7 . Eating out at home ‘Almost ready’ meal services have become more popular, with services like Marley Spoon and Hello Fresh offering food delivery with easy to follow recipes. Takeaway is now offered in 40 per cent of restaurants that did not offer the service before8 . Health care at home One in six Australian’s accessed tele- health in April 20209 . While many providers have returned to on-site offerings, the convenience factor is likely to create continued demand for more flexible health service offerings. Home exercise Google searches for home exercise reached an all-time high in April 2020, and continue to trend at 61% above the levels averaged before COVID10 . Placemaking & community As we spend more time in our local areas, people will expect greater local amenity and community tailoring from infrastructure investments. Local and state governments will play a key role in meeting community expectations for local amenity through placemaking and multi- faceted planning models, with investments in infrastructure needing to consider comprehensive approaches to delivering local benefit in tandem with the traditional infrastructure services. This includes improved open space, cycleways and walking paths alongside road or rail investments and community facilities integrated with local health services. Community consultation and involvement in planning will become more important, as residents seek to maintain the sense of identity and enhance the liveability of the area - including employment opportunities. This is a reversal of historical trends which saw a 19 per cent decline in Australians involved in social groups, and a 6 per cent decline in people involved in sport or recreational activity between 2010 and 201411 . 7 Sydney Morning Herald, Australia Post Looks at delivering seven days a week as online demand breaks records, 29 July 2020 8 ABC News, After coronavirus restricts lift, cafes and restaurants will change, 16 May 2020 9 Australian Bureau of Statistics, 2020, 4940.0 – Household Impacts of Covid-19 Survey, 29 April – 4 May 2020 10 Google Trends “Home Exercise” Australia, https://trends.google.com/trends, accessed 30 July 2020 11 Australian Bureau of Statistics, 2014, General Social Survey, cat no. 4159.0, viewed 12 August 2020, https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/4159.02014?OpenDocument
  • 14. | 8 | Venturing into the New Era of Infrastructure TREND 3: A push for a more resilient economy, with a domestic focus From drought, bushfires, floods, global political unrest and a pandemic, domestic resilience is as important now as ever before. Supply chains Building supply chain resilience and self-reliance will protect against global and environmental threats Supply chains Digitisation Digital acceleration needs to be matched by advancements in connectivity, storage, and security
  • 15. | 9 | Venturing into the New Era of Infrastructure Supply chains Digitisation The pandemic highlighted the vulnerability of global supply chains, and our dependence on imports has become resoundingly clear. Supply chain impacts of COVID were felt across industries, including rail, construction and health care, as supplies from global manufacturing plants shutdown12 . At the same time, many domestic supply chains, particularly in agriculture and food production, have been battered after recent drought, floods and fires. Investment in domestic freight and supply chains, partnered with reforms that empower R&D and supply chain efficiency, will ensure that we can continue to meet our needs and are resilient to global and environmental shocks. However, connectivity and access to global markets will continue to be essential to manage fluctuations in local production (particularly given our dry and unpredictable environment), and to meet our lifestyle expectations for low cost, high quality manufactured goods that are less competitive to produce domestically. In 2020, digital activity contributed $426 billion to Australia’s economy, 35 per cent higher than in 201813 . The expansion of digital activity will continue to accelerate, with the way we work, live and interact becoming more digitally dependent. Network connectivity and data storage will continue to be crucial to supporting our economy. As more businesses move online and remote working and learning becomes a way of life, digital reliability will be critical to the efficiency and effectiveness of operations. This includes speed of connectivity, but also the size – particularly as workers seek to connect to data storage from different sites. Digital security will be a greater focus for many organisations, and for individuals, as Australians become increasingly concerned with privacy and our growing digital footprint. The Australian government estimates that cybercrime costs Australians more than $1 billion each year14. 12 Infrastructure Magazine, How the sector is managing the COVID-19 crisis, Accessed 12 August, https://infrastructuremagazine.com.au/2020/05/07/how-the-sector-is-managing-the-covid-19-crisis/ 13 AustCyber, Australia’s Digital Trust Report 2020, July 2020 14 Department of Industry, Science, Energy and Resources, Why does cyber security matter? Accessed 30 July 2020, https://www.industry.gov.au/data-and-publications/australias-tech-future/cyber-security/why-does-cyber-security-matter
  • 16. | 10 | Venturing into the New Era of Infrastructure What does this mean for each infrastructure sector? The shift in the way we live and work will have flow on impacts to the infrastructure needs of the community, marking a distinct change in the way infrastructure is planned and delivered across our communities. The legacy impacts for infrastructure planning will be felt across the sector. Transport Capital investment in transport is likely to have peaked in the near term, peoples travel demand and choices change Public transport demand There will be a permanent reduction in public transport demand, as more work from home and those that do commute choose to drive or rideshare. This means less focus on investing in upgrades to public transport – a distinct shift from the mega-rail projects of the 2010s. PT timetabling Those that do continue to catch public transport are likely to prefer to travel at off-peak periods to avoid crowding, creating more evenly spread passenger demand over the day. This will have flow on impacts to asset maintenance with reduced asset ‘down-time’. Network connectivity As fewer people travel for work purposes, their priorities will shift to connectivity – being able to get where you need. Recent years have seen transport planning focus on moving populations to the CBD and back – which will be less of a focus going forward. Ridesharing As the value people place on convenience increases, the demand for ridesharing services will grow. Ridesharing and car-share services such as Go-Get and Car Next Door provide flexibility at a lower cost than car ownership. “Governments’ have an opportunity to reshape commuter behaviour and reassess outdated policies…. As economic activity rebuilds and population growth resumes post- COVID, governments should focus on measures that lock in positive changes to travel behaviour and service provision.” Infrastructure Partnerships Australia, Australian Travel Time Metric – 2020 edition
  • 17. | 11 | Venturing into the New Era of Infrastructure Healthcare Health care will build capacity to prepare for future ‘black swan’ events, with increasingly tailored services Capacity and emergency planning New awareness of the risk of infectious diseases and potential future pandemics on healthcare capacity will see an increase in ICU and hospital bed-capacity. Short term capacity planning will be incorporated into routine emergency response planning – which may include dynamic models that allow rapid upgrade of capacity by ‘switching’ wards from non-urgent care to infection control and ICU wards, or the introduction of shift planning that minimises crossover of staff to reduce the impact of isolation on operations. Out-of-hospital care More care will be provided outside of the hospital setting as a way of managing the risk of future ‘black swan’ health events on operations. Patients will also expect more flexible care, including tele-health, and close-to-home services. This reflects both a return to the community and legacy fears from the COVID experience – with ED presentations dropping 40 per cent during COVID15 . This will primarily be seen in non-urgent care that can most easily be separated from the hospital setting, such as day surgery, community birthing centres, and tele-health for consultations where physical contact is not required. Protecting the elderly COVID exposed Australia’s approach to health care for the elderly, particularly in the live-in aged care sector, which saw some of the highest infection rates in the country. There will be significant changes to the sector and reforms to workplace practices. Many families will choose to care for loved ones at home, or seek smaller, community-based facilities. There will also be a greater focus on introducing models for safely maintaining human contact for our elderly community, including digital education. 15 Insight Magazine, COVID fears drive patients to avoid doctors, hospitals, May 2020
  • 18. | 12 | Venturing into the New Era of Infrastructure Essential services Essential services require greater environmental resilience, cost efficiency and capacity to meet the demand of a more dispersed population Resilience of essential services There will be a continued focus on the ability to provide ongoing waste, water and energy services to Australians, particularly in the face of recent droughts, floods and storms. Investment in everything digital Investment is required to ensure the network is reliable and secure, and that it can reach where Australians live. Data storage and security will also be increasingly important, as more people connect for work and leisure remotely. Supply to meet population movements Investment in essential services will need to ensure service provision for a more dispersed population – particularly in areas that grow faster than previously expected, such as regional centers. The cost of essential services will also be a focus, particularly energy, which has had major impacts to the Australian cost of living in recent years. Education Education will digitise, particularly tertiary and adult education. Facilities will become more dispersed to meet population shifts Continuous learning online Professional development will become more of a focus, with education providers offering ‘micro credentials’ to support employees as their careers evolve. These courses will be flexible and entirely online. Decline of the CBD childcare model As people shift to working from home or locally for more of their time, CBD childcare centres will be less convenient. In its place, childcare services close to the home, particularly those with is a strong sense of community, will need to increase capacity to meet growing demand. Community-based schooling Local schools that facilitate a strong sense of community and local connection will thrive. Legacy crowding fears from COVID will leave parents uncomfortable with their children catching public transport to distant suburbs for high school, resulting in an increased need to increase existing school capacity in suburbs and regional centres.
  • 19. | 13 | Venturing into the New Era of Infrastructure What is the role of government? We should re-consider the government’s role in facilitating these trends, assist businesses and workers to gradually shift to meet these new demands, and harness the potential in them to create better lifestyle and communities for Australia. Better yet, the Government can lead by example, by: – Realigning service delivery and infrastructure investment to meet shifting demands and community expectations – Aggressively pursuing digital opportunities (e.g. the latest Digital Restart Fund) to drive efficiencies and innovation – Building infrastructure that allows data to be collected for future planning and delivery – Designing infrastructure that facilitates tailored and better services, particularly in health, education, justice, aged care, and disability services – Creating surge capacity in government services to handle “black-swan’’ events – Investing in additional energy, freight and productivity capacity to provide affordable sustainable, and resilient essential services across our communities – Reducing red-tape and removing barriers for businesses to flexibly respond to changing demand.
  • 20. | 14 | Venturing into the New Era of Infrastructure Contact Us Level 3, 223 Liverpool St, Hyde Park, Sydney, NSW 2010 1300 478 433 hadrongroup.com.au