Up to 10,000 jobs will be lost in South Australia's construction sector over the next three years as investment declines, a new report has found.
Prepared for the Civil Contractors Federation, the report says SA still faces major challenges from the end of the mining boom and the demise of traditional manufacturing.
"The South Australian economy is expected to continue to underperform after 2017/18 as the current investment cycle unwinds," the report said.
The gloomy view comes after last month's closure of the Holden assembly operations in Adelaide's north and other job losses across the automotive and wider manufacturing industries.
The report urges South Australia to concentrate on leveraging its core strengths compared to the eastern states including the lower cost of living and lifestyle benefits.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
SA should also focus on key sectors including defence and tourism.
"Ultimately, the solution to South Australia's economic challenges will involve reversing decades of weak population growth and addressing the relative underperformance in attracting private investment - all of which will take time," the report said.
CCF chief executive officer Phil Sutherland said SA's major political parties should use the report as a "blueprint to the future".
"This report is both alarming and a reality check," Mr Sutherland said.
"With a state election only four months away, the CCF implores the major political parties to heed the warning signs."
