If there is one building site in Australia that demonstrates the economic tightrope the construction industry is walking it’s the Ribbon project in Sydney’s Darling Harbour.
Perth-based housing estate developer Nigel Satterley said the country’s west was suffering acute shortages of truck drivers, machinery operators, plumbers and drainers. Experts are pointing to more pain in the sector as groups reassess project finances as inflationary pressures, supply chain disruptions and labour shortages begin to bite.
“If you look at the domestic scale, I think the challenges there are even more pronounced because the systems and supply chains are not as advanced. The pressure is being felt not just by contractors, it’s spread to all the stakeholders, financiers, designers and engineers.“The design and construction industry was reliant on the growth of specialist talent and skills through immigration.
“They’re doing their best to survive the situation and I think the good and well-capitalised builders are sharing in the pain with their subcontractors, but it’s hard when multiple subcontractors have issues and the builder is on a tightrope with the developer on time and cost.Fitzgerald says there are real economic headwinds facing the industry as well as a structural problem with how the sector operates.
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