LGIS Infrastructure Predictions for 2015

1. Innovative. Proven. Dedicated. • Your infrastructure partner. LGISInfrastructure 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. 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 SELLING IT

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

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 55000 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. 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 $ MOBILES + BIG DATA

12. 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 DRONING ON

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