INDUSTRY FACES MASSIVE
The annual inflation rate is at its highest since 2001 and is negatively impacting every sector of Australia’s
construction industry. This includes residential, industrial, retail, renovations and so on. The industry is
declining due to shortages in labour, timber and steel.
These shortages resulted in an unprecedented spike in construction costs. This cost inflation may continue
for over a year. It is likely to affect consumers and place upward pressure on the price of new housing or
Before the COVID-19 pandemic, Australia expected approximately 160,000 immigrants to enter the country
each year. Instead, around 100,000 left each year, and many temporary skilled visa migrations were
abandoned as workers went back home to be with their loved ones.
Construction job vacancies have increased by over 80% since 2019. By 2023, it is estimated that there will be
more than 100,000 unfulfilled roles. This is almost 50% greater than the number of people expected to be
qualified for them.
Timber and Steel Shortage
The timber and steel shortages are due to various factors compounding each other. These include the
pandemic, bushfires, flash floods and their effect on the supply chain.
Due to Australia’s geographical location, delays in sourcing materials from international suppliers are
an old issue. However, the pandemic further exacerbated it.
Bushfires and floods wiped out a significant portion of timber. At the same time, it made it more difficult
for suppliers to transport materials across the country, particularly through Queensland.
The Effect on Consumers
The increase in dwelling costs has been devastating for low-income consumers. The Australian Council
of Social Services is worried that people may face evictions, and some are now living in cars.
Over 3 million Australians living in poverty require support as inflation causes household necessities to
become unattainable to them. Food is a frequent concer