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Development / Resources

Henderson Naval Expansion Raises Concerns Over WA Construction Labour and Material Shortages

WESTERN AUSTRALIA ● 06 October 2026

Western Australia is facing concerns over a major shortage of skilled tradespeople as preparations continue for the expansion of the Australian Marine Complex at Henderson and associated naval facilities at Garden Island.


The redevelopment forms part of Australia's AUKUS defence commitments and a long-term naval shipbuilding program, with approximately 10,000 workers expected to be required to establish the necessary infrastructure.


The project includes facilities to maintain nuclear-powered submarines at HMAS Stirling and an expanded shipbuilding precinct at Henderson, where construction of eight 4,800-tonne warships is scheduled to begin in 2030.


A major component will be a $4.3 billion dry dock, requiring an enormous quantity of concrete. Industry estimates suggest the overall redevelopment could consume three times the amount of concrete normally used by Perth's residential construction industry in an entire year.


The Federal Government has allocated approximately $25 billion towards the development, although some industry observers believe the eventual cost could approach $50 billion.


The scale of construction has raised concerns about competition for workers and building materials, particularly as Western Australia is already experiencing shortages across its housing, infrastructure, mining and energy sectors.


Mining companies are concerned that workers currently employed on fly-in, fly-out rosters may choose employment at Henderson, allowing them to remain closer to their families.


The Chamber of Minerals and Energy WA has warned against creating excessive competition between defence contractors and the resources industry, which remains a major contributor to government revenue and employment.


Concrete supply is another concern following BGC's withdrawal from the industry, with remaining suppliers already experiencing strong demand. Temporary concrete batching plants may be established at Henderson to support construction.


The State Government is preparing a five-year workforce strategy to address the anticipated demand for tradespeople, engineers, construction managers and other skilled workers.


Skills and TAFE Minister Amber-Jade Sanderson acknowledged that defence projects would compete directly with mining, energy and construction employers for many of the same workers.


Master Builders Association WA chief executive Matt Moran also called for substantial investment in training and workforce development.


He noted that Western Australia already had approximately $133 billion worth of major projects planned, including at least $25 billion in investment at Henderson over the coming decade.


The concerns come as the State continues to face pressure to increase housing construction while delivering new hospitals, schools and other essential infrastructure.


The Henderson redevelopment is expected to support Australia's naval defence requirements for several decades, but its scale has raised questions about whether Western Australia's existing workforce and construction supply chains can meet the additional demand.

The West Australian ● Page 4 ● Ben Harvey

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