28 July 2021
MATERIAL delays and soaring costs are continuing to tighten their grip on the building and construction industry, with the situation not expected to ease until next year.
The latest Master Builders member survey confirms the situation for builders and trade contractors is dire, with the very real possibility some businesses will reach breaking point in the lead-up to Christmas.
Off the back of the surge in work created through the HomeBuilder and Regional Home Building boost grants, record low interest rates and peaking interstate migration, the industry is continuing to scramble to keep pace with demand against the backdrop of supply chain delays and price hikes caused by the pandemic.
The June survey reveals the lead time across all key building materials continues to blow out, with 100 per cent of respondents now facing wide-ranging delays on timber – 40 per cent waiting more than a month. Delays to access steel is also reaching a critical level.
The shortage in supply is also playing out in price increases, with one in four respondents slugged with hikes of more than 25 per cent for timber and roofing materials, and ten per cent on steel.
Available tradies are increasingly thin on the ground, with two out of three builders waiting more than a month for roof installers, and steel workers, tilers, carpenters and bricklayers not far behind.
“Confirmation that Queensland is set to host the 2032 Olympic Games is welcome news for the industry in terms of a pipeline of work, but the fact the Games are so far off is also a good thing,” Master Builders Deputy CEO Paul Bidwell said.
“Industry can only absorb these skyrocketing prices and delays for so long – and unfortunately, we’re predicting this situation could explode in our faces around September and October.
“Hopefully the shortages situation will begin to resolve itself after that.”
The COVID emergency in NSW, which has resulted in the state government’s decision to shut the local industry down, highlights the importance of supporting Queensland building and construction as the cogs which keep the wheels of the state’s economy moving.
“Our research shows the industry would haemorrhage $761 million each week if it was forced to down tools, impacting more than 232,000 employees and over 77,000 businesses state-wide,” Mr Bidwell said.
“It’s our industry that will be the cornerstone of preparations for the Games – so we need support from the Palaszczuk government to keep it viable into the future.
“While the state government’s Accelerated Building Consumer Dispute (ABCD) framework is a good thing, both builders and consumers need further assistance when the situation goes beyond mediation, through no fault of either party.
“We’re in talks with Minister Mick de Brenni’s department on a permanent rapid dispute resolution process for the residential sector, similar to what’s available to commercial builders, in the hope of providing a fair and speedy resolution when these challenging conditions see projects fall apart.”
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