Defence construction is rapidly increasing across Australia. This has led to a rise in defence infrastructure jobs.

This surge comes as the Federal Government prepares to lift defence spending to 2.4% of GDP by 2034, up from the current 2.1%. The shift is already taking shape, with $10 billion in new projects entering tender databases over the past six months alone. The scale and speed of this investment signal a long-term transformation rather than a short-term boost — with major projects likely to span a decade or more.

Industry experts say this marks the beginning of a major shift in Australia’s infrastructure landscape. Billions of dollars are being directed toward defence facilities — particularly naval and air force bases. As a result, demand for skilled construction workers, engineers and contractors is expected to rise sharply. Population growth, data centre construction and government-backed infrastructure projects are already placing pressure on the sector. This comes at a critical time for the industry. But with an already stretched workforce and competing infrastructure priorities, can the industry meet this surge in demand?

So, what’s behind the increase in spending — and what challenges will this create?

What’s behind the increase?

Much of the increase in defence construction is driven by the need to prepare Australia’s naval bases for the Aukus pact, which involves collaboration with the United States and the United Kingdom.

As part of this agreement, Australia must be capable of hosting, maintaining and eventually building advanced nuclear-powered submarines. This will require significant infrastructure upgrades. Spending on the nation’s largest naval base, HMAS Stirling, has jumped by $3.3 billion in the last six months alone.

There has also been a near-$750 million boost at RAAF Base Darwin and more than $600 million in additional funding for RAAF Base Townsville. This reflects the strategic importance of Australia’s northern defence zones.

Work is also underway to upgrade the Osborne shipyard outside Adelaide so it can build nuclear-powered submarines. Meanwhile, the Federal Government has announced a $25 billion upgrade to the Henderson shipyards in Perth. This facility will be responsible for maintaining Australia’s nuclear submarine fleet and building the navy’s next generation of landing craft. These projects are extensive, complex and long-term. They require specialist skills across engineering, civil construction, logistics and site management.

Are there any issues?

Experts warn that an increase in defence projects could mean other projects are displaced at a time when demand for national infrastructure is already stretched. This is because the construction industry currently can only take on $1.5 billion in new defence projects annually without delaying other work. As a result, some road, housing and energy projects may be slowed to make way for military infrastructure.

Some national security projects may also be prone to delays. With so many approvals occurring at once, some projects could take years to build. Experts also warn that workforce shortages may occur before work even begins. Capacity in the industry only grows by a few per cent each year. This means additional labour must come from somewhere — either from training new workers or reallocating staff from existing projects.

While these challenges highlight pressure on the construction sector, they also reveal a major opportunity. With billions of dollars’ worth of defence and  major infrastructure projects in the pipeline, Australia will need a larger and more skilled construction workforce to deliver them. Tradespeople, engineers, project managers, estimators and site supervisors are already in high demand. This demand is expected to grow as defence work ramps up. For anyone considering a career in construction, this could be an ideal time to enter the industry. It’s also a chance to build in-demand construction skills that are vital to Australia’s future.

Are you looking for a new career?

Construction Resumes can help. We are pleased to offer a range of services — including resume writing, cover letter writing and selection criteria support — to help you stand out in a competitive industry and pursue meaningful opportunities across Australia’s growing construction and defence sectors.

Article References

Bleby, M (26 November 2025) ‘Defence construction surge a risk to other building projects’, Financial Review, accessed 27 November 2025.