Welders say they’re facing “unprecedented pressures” as sky-high manufacturing costs force projects to outsource overseas.
A recent member survey by advocacy group Weld Australia has revealed an industry in crisis, as welders claim the rising price of energy, material and labour has dried up the work pipeline.
Despite the high demand for the specialised tradies amid the recent infrastructure and renewables boom, half of the welding workshops involved in the survey said they were only working at 80 per cent capacity or below, with 7 in 10 members claiming they had the capacity for additional work.
According to Weld Australia CEO Geoff Crittenden, this chronic work shortage boils down to one key problem – it’s become too damn expensive (and risky) for companies to invest in workers on home soil.
“Lack of work, combined with the rising costs of energy, materials and labour, is making it nearly impossible for companies to invest in the technology and skills necessary to stay globally competitive,” he said.
Businesses seem to agree, with owners pointing toward inflation as the key concern for workers looking forward. Over the next 12 months, 64 per cent of businesses predicted the rising cost of energy would hold back their growth, while 61 per cent pointed toward the rising cost of materials and 50 per cent rising labour costs.
With the increased operating costs piling on top of already inflation project prices, Weld Australia says many companies have instead turned to overseas steel in search of bringing down their bottom line, hurting the job market in the process.
Bringing steel back to home soil
In the hopes of bringing some job security back into the sector, Crittenden is calling on both Federal and State governments to commit to manufacturing material with local workers to secure the sector for competitive growth in the coming years.
“The solution lies in enforceable local content requirements,” he said.
“Government-backed initiatives must prioritise Australian-made steel and fabrication in renewable energy projects and other infrastructure developments.
“This would provide the long-term security our industry needs to invest in advanced technologies, productivity improvements, and workforce development, ensuring Australia remains competitive on a global scale.”
Under the group’s proposal, a ‘local content legislation’ would be drafted to see 60 per cent of all fabricated steel used in the nation’s renewable energy projects manufactured in country by local welders.
If done right, Crittendon said this commitment to securing the future of the industry would afford businesses the chance to innovate their systems, in turn boosting investor confidence, fortifying supply chains and even positioning Australia as a global manufacturing leader.
“Business owners are caught in a difficult position, juggling rising costs and a lack of work with the imperative to innovate and remain competitive,” he warned.
“The reality is that without a guaranteed supply of work, particularly from government-backed projects, many welding businesses will find it difficult—if not impossible—to justify the necessary investments in advanced technologies.
“We risk losing critical skills and capabilities that are essential for our nation’s economic future.”
