Master Builders is actively working to ensure that the objectives of a Federal Government initiative that is already driving huge economic growth can continue to be achieved.
Master Builders Australia had a survey in the field to determine the extent of the problems being caused by the extraordinary success of HomeBuilder in activating huge demand for home building consistently across the country in metropolitan and regional Australia.
Pressure on trades
Perhaps unsurprisingly given the historic effectiveness of HomeBuilder, the survey results confirm that substantial pressure on the building supply chain has resulted.
Nationally, 71% of businesses are experiencing delays in the availability of trades with numbers in each state and territory hovering around that mark.
Depending on which part of the country you are in the trades that are most impacted include carpenters, bricklayers, roof installers, concreters, labourers and joiners.
The numbers of businesses experiencing delays in these key trades is significantly higher with the national figure at 81.9% and in some states it is as high as 94%. On average the extent of the delay is around two weeks but the percentage of businesses experiencing delays of more than a fortnight nationally is 48%.
The percentage of businesses experiencing cost increases of around 10% because of trade delays is also substantial at 71% nationally and at similar levels state and territory jurisdictions.
Pressure on building product supply
Delays and cost increases in building product supplies is also having an impact.
Timber engineered wood products – confusingly known as ‘wood excluding timber’, steel products, non-tile roofing materials and windows are the products most delayed according to the survey.
The proportion of businesses experiencing these delays ranges from 70% - 95%. The product most in short supply is timber which ranked in most short supply in all states except WA where they build in double brick.
However, the products where there has been the great proportion of businesses experiencing price increases is a different story with steel products (the highest % of businesses reporting an increase) and roof tiles uniformly leading the way across the country.
In addition to the gangbusting success of HomeBuilder other factors are also clearly at play. Government stimulus has also caused a big uptick in civil construction and projects in that sector are competing for products and skills with the residential sector.
HomeBuilder is generating huge demand consistently across the country meaning that tradespeople and products can’t be sourced from other domestic jurisdictions.
Likewise the closure of international borders is proving a barrier to sourcing skilled workers from overseas.
With this evidence now gathered Master Builders is in contact with the Federal Government to explore ways that this pressure on the supply chain can be relieved.