According to forecaster BIS Shrapnel, non-residential construction in Victoria will be in a state of decline for the next two years.

Since the Global Financial Crisis (GFC) of 2008, non-residential building has seen many ups and downs across the nation. From 2011 to 2012, non-residential building in Victoria fell 12 per cent, and is anticipated to decline another six per cent this financial year; nationally, however, non-residential building is expected to rise by 10 per cent, but predicted to fall in 2012 to $29.4 billion.

The forecasts from BIS Shrapnel come as Victoria finds itself under pressure to green-light infrastructure projects. At present, approximately 50 large construction projects (valued at $50 million and up) are underway in Victoria or set to start soon. Of particular concern is slow economic recovery, bringing with it the potential of rising interest rates, which would slow building progress. In order to increase its productivity, Victoria needs more and better infrastructure, according to BIS Shrapnel.