GEORGIOU CHAIRMAN TAKES ON NEW PROJECT
Did you know that of the nearly $50 billion in contracts awarded in Australia in the past year, only 3% was won by Australian-owned companies?
Did you know that of the nearly $50 billion in contracts awarded in Australia in the past year, only 3% was won by Australian-owned companies?
Since stepping into the Board Chairman role in August 2018, John Georgiou has been busy setting up Australian Owned Contractors (AOC) – a collection of mid-tier construction companies demanding more opportunities to build major infrastructure projects in Australia.
“Of the $50 billion worth of infrastructure projects across Australia, multinationals (such as CIMIC Group, John Holland etc) are delivering $38 billion – that’s 80 percent of the work. Therefore local contractors such as Georgiou are unable to build capability and grow to support the Australian economy,” John explained.
“In having a handful of foreign multinationals delivering this work, there is a concentration risk for government. To make matters worse, these multinationals are now joint venturing with each other which further reduces the competition which isn’t great for Australian companies.”
John believes Australian owned mid-tier companies, such as other members Bielby, BMD, Daracon, Decmil, Ertech, FKG Group, Maca and SRG Global, have the physical and technical capability to deliver these projects but are being ‘risked out’ of the market.
“The role of AOC is to urge governments across Australia to look at ways to end this current market distortion and support the growth and capability of the local mid-tier construction sector.
“It’s about ensuring companies such as Georgiou have equal opportunity to secure large contracts and continue providing employment opportunities to our people.”
For more on AOC and what our Chairman is doing, check out their LinkedIn page, click ‘Follow’ and keep up to date with the latest progress. You can also visit their website for more information.