Davis Langdon

Media Release: Direct Economic Stimulus To Nursing Sector

February, 2009

Media Release: Direct Economic Stimulus To Nursing Sector

International construction consultants Davis Langdon have predicted that the best performing growth sectors in 2008/2009 will be education and health and aged care experiencing growth of 11 percent and 7 percent respectively.

Davis Langdon’s national research director, Rachel Kelloway, said the volume of these sectors will increase in dollar terms by more than $400 million (Education) and more than $200 million (Health and Aged Care).

However, she says that even this increase will not account for the pent up demand and the backlog that already exists.

Davis Langdon has called for more of the Government’s economic stimulus funding to be directed into the health and aged care sectors, particularly into nursing homes.

“The aging population, positive net migration, growing population and our increasing life span are all combining to put massive pressure on the aged care sector,” said Ms Kelloway.

“At a time when the Government is looking at significant pump priming across the board then this is one sector which should get more than its share of attention.

“It would be a real win win if major works could be undertaken in this areas as you would not only be creating jobs and helping the economy, but you would also be helping address an accommodation need which has been allowed to run down and which also has a significant ongoing community benefit.”

Ms Kelloway said there are significant health sector projects underway including Queensland Health Sunshine Coast ($940 million) and the New Royal Children’s Hospital in Melbourne ($1 billion) and more projects in the pipeline on the Gold Coast and in Hobart.

“The health sector has attracted significant funding and that is to be commended, but we need to boost the spend in the nursing home and retirement community area,” she said.

Davis Langdon predicted that spending in this area would increase a further 4.2 percent from 2010 to 2011.

For further information, contact Meaghan Jones on +61 3 9933 8800 or email mjones2@davislangdon.com.au 

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