Smarter procurement is the key to unlocking the full potential of Australia’s construction materials sector, according to peak industry body Cement, Concrete and Aggregates Australia (CCAA).
Welcoming Infrastructure Australia’s 2025 Infrastructure Market Capacity Report, the organisation has called on governments to drive procurement reform and adopt Australia-wide performance-based standards.
The report, released on 13 November, reveals the five-year Major Public Infrastructure Pipeline has surged by $29 billion to reach a record $242 billion following a two-year decline, driven by growth in housing, energy, transport and social infrastructure.
This, CCAA Chief Executive Michael Kilgariff said, reinforces the need to shift from “lowest-cost” tendering towards procurement that rewards performance, innovation and emissions reduction over an asset’s full life.
“Concrete and quarry products are the backbone of Australia’s housing, transport and energy build-out,” said Kilgariff.
“To deliver this pipeline, governments need smarter procurement that values quality, resilience and lower embodied carbon, not just the cheapest upfront bid.
“Consistent market pull for modern construction materials is essential if we’re to meet both delivery and decarbonisation goals.
“Our members are already supplying low-carbon concretes using fly ash, slag, silica fume, calcined clays and recycled fines; what’s missing is a clear, consistent demand signal.”
To help build that demand, the CCAA is asking for nationally harmonised, performance-based standards that would reduce duplication across jurisdictions, giving companies the confidence to invest in new plant, equipment and low-carbon product development.
The organisation has endorsed Infrastructure Australia’s circular economy approach, with the report highlighting the need for procurement frameworks that create reliable market pull for recycled aggregates and low-carbon concretes.
“Lower emissions materials are critical for reducing embodied infrastructure emissions but are underutilised: while governments have funded initiatives and research programs to promote low-carbon and recycled alternatives, uptake remains slow due to prescriptive specifications, weak demand signals and unclear commercialisation pathways,” said the report.
“Stronger procurement levers, performance-based standards and capability building would help to scale adoption and meet net zero targets.”
Elaborating on this, the CCAA said consistent, performance-based standards will make it easier and less risky for governments to procure low-carbon concrete at scale.
“This kind of market pull is one of the most practical steps we can take to support productivity, sustainability and delivery of the pipeline,” added Kilgariff.
“If we align procurement, standards and project pipelines, we can maintain the flow of essential materials while accelerating uptake of lower-emissions products, turning today’s record pipeline into long-term economic, social and environmental value.”
The CCAA represents Australia’s heavy construction materials sector, which generates over $15 billion annually and directly employs around 30,000 Australians, with another 80,000 working in related industries.
Its members produce most of Australia’s cement, concrete and aggregates, which are essential to the nation’s building and construction sectors.
