Master Builders claims that the building industry has been left powerless by an increasingly aggressive construction union.

“Enough is enough. It’s time to bring back an industry-specific regulator with real teeth and restore confidence in the building and construction industry." says Master Builders Australia CEO Denita Wawn.

Added to her concrens is the fcat that monthly inflation is again heading in the wrong direction, highlighting the notion that serious action is needed to bring down building costs and increase housing supply,

Rising housing costs were one of the biggest monthly drivers of monthly inflation, bumping up from 3.6 percent to 4 percent, the worst result since November.

Rent prices are 7.5 percent higher than a year ago while the cost of new dwelling purchases is up 4.9 percent.

The ABS also released the March quarter engineering construction data today showing its first decline in two years.

The volume of engineering construction dropped by 2.3 percent during the March 2024 quarter.

The reduction affected both public sector and private sector projects.

There was a 2.4 percent fall in engineering construction work done for the public sector while the volume of private sector activity fell back by 2.2 percent.

The reverse in engineering construction activity is ominous given that it was previously the main source of growth in the industry.

All three pillars of construction activity are now moving backwards according to some industry observers.

According to Master Builders Australia CEO Denita Wawn,“Builders are pulling their hair out over their concerns continuously falling on deaf ears.

“Inflation is a capacity killer, making investment more expensive and less attractive.

“On the ground, we continue to hear projects for new homes, commercial or infrastructure construction simply don’t stack up because it takes too long to build and is too costly.

“If we don’t get inflation under control and urgently start boosting housing supply we are in for a lengthy period of pain and depressed construction activity.

“Bringing down housing and rental inflation can only be achieved once we get a move on and speed up planning reforms, address tradie shortages through domestic and skills migration pathways, reform the regulatory environment, and scrap damaging elements of recent IR changes,” says Wawn, who adds that a more confrontational approach is needed.

Image: Linkedin

Branko Miletic

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