It’s no secret Australia’s building industry is being battered by skyrocketing costs and a crippling labour shortage.
But according to a recently released worldwide poll, Aussie construction firms aren’t doing the hard yakka alone.
Industry insights from 669 housebuilders in 17 countries have revealed that builders and developers across the globe are also feeling the strain.
Nearly 80 per cent of home builders said they were also struggling with the effects of rising costs, such as wage increases, which had impacted two-thirds of respondents.
Meanwhile, 75 per cent of construction firms polled have already suffered project delays due to a lack of skilled labour, which is hampering the sector’s profitability.
The eye-opening stats were collected by construction management software firm Plan Radar as part of their annual Global House Builders Survey report.
Plan Radar regional lead Leon Ward told Build-it that the survey painted a comprehensive picture of the current landscape within Australia, which faced similar construction challenges to many other nations.
“(In Australia) the shortage of skilled labour has resulted in extended project timelines and increased financial strain on developers,” he said.
“The financial pressure on developers is growing, making it harder to deliver projects within budget and on time…this is particularly concerning given the pressing demand for housing across Australia.”
Rising costs to demolish home-build targets
Mr Ward warned that the industry will have little chance of meeting the government’s lofty housing ambitions of building 1.2 million new homes by the decade’s end unless it can address its labour shortage woes and reduce material costs.
“Rising costs present a significant challenge to Australia’s national housing accord goals and the ability of states to meet home-building targets,” he told Build-it.
“The impact of these rising costs is a significant concern, especially given the current material supply constraints.”
“With states already struggling to meet ambitious home-building targets, the added financial strain from rising wages and delays may lead to prolonged project timelines and fewer housing completions.”
“This issue could be particularly detrimental to affordable housing targets, where cost margins are already tight.”
Unfortunately, material costs and labour availability are out of the control of the average builder or small construction firm.
Office tools help speed up completion time
However, construction crews can still reduce home completion times by focusing on other areas, significantly improving their bottom line.
Mr Ward told Build-it that builders should look at improving factors within their grasp to improve workflow and save on construction costs.
“Beyond updating construction management software, homebuilders are increasingly focusing on strategic procurement and supply chain management to relieve cost pressures,” he told Build-it.
“By consolidating suppliers, negotiating long-term contracts, and bulk purchasing materials, they can lock in prices and reduce exposure to potential volatile market fluctuations.
Some builders are also exploring alternative building materials, such as engineered timber or prefabricated components, which can lower costs and reduce construction timelines.”
“Additionally, we are seeing that there is growing interest in optimising project designs to be more cost-efficient, including standardising design elements and reducing complexity, which helps minimise both labour requirements and material waste.”
