Trade shortages continue despite housing market slowdown
The HIA warns Australia's residential construction sector still faces a critical skilled trades shortage, even as the housing market slows. The shortage threatens the industry's capacity to meet future demand.
Why are trade shortages still a problem even though the housing market is slowing down?
Affects builders, plumbers, electricians and carpenters. Ongoing shortages may push up subcontract costs and delay project timelines for small operators.
Key takeaways
- HIA says skilled trade shortages in residential construction persist despite a softer housing market.
- The slowdown has not been enough to ease pressure on tradies or free up workforce capacity.
- Industry warns shortages could limit the sector's ability to ramp up when demand returns.
- Training and workforce pipelines remain a key concern for the building industry going forward.
Related
Trades shortages persist as work on the ground remains solid
Skilled trade shortages remain widespread across Australia. The HIA says demand for workers is being supported by the recovery in home building activity over the past year.
Why it matters: Builders, carpenters and other residential trades should expect continued tight labour supply. That can mean higher wage pressure, harder hiring and longer lead times on jobs.
WA passes new payment protection laws for subcontractors
Western Australia's Parliament has passed new payment protection laws for subcontractors. The changes, made through an amendment to the Building and Construction Industry (Security of Payment) legislation, aim to give subcontractors stronger protection against insolvency.
Why it matters: Subcontractors in WA, including plumbers, electricians, carpenters and other trades, get stronger protection if a head contractor becomes insolvent. This could reduce the risk of unpaid work and cash flow problems.
ATO ramp up of small business debt collection
Master Builders Australia has published a news item saying the ATO is stepping up its debt collection against small businesses. The text provided gives no further detail on the measures, timing or amounts.
Why it matters: Builders and other trade businesses with outstanding tax debts may face firmer ATO collection action, which could strain cash flow. Details are not in the source text, so check the ATO or Master Builders directly.