Tradie lay-offs are looming as new data shows rising costs are hitting trade employers. Photo: iStock.
More tradie lay-offs are looming as new data shows rising costs are forcing employers to consider cutting staff as a new report urges governments to scale modern methods of construction to hit ambitious build targets.
New survey data from the Institute of Automotive Mechanical Engineers (IAME) shows 93 per cent of trade businesses are under moderate to very high financial pressure, with nearly three quarters reporting worsening conditions over the past year.
RELATED: Aussie reno queen unleashes world-first robot tradie on live build
Tradie turned developer reveals how he transforms post-war eyesores into millions
More than one in three trade businesses may reduce staff or apprentices if current conditions persist, a new survey has found.
And, more than one in three businesses may reduce staff or apprentices if current conditions persist, the survey suggests.
ASIC insolvency figures show construction accounts for about one in four company collapses, with subcontractors, builders and trade firms squeezed by rising labour, insurance and materials costs.
At the same time, a Committee for Economic Development of Australia (CEDA) report with Urbis argues the industry must “build differently” to lift supply.
‘Built Different: Modern Methods of Construction’ has found scaling modular and off‑site manufacturing, prefabrication, 3D printing, robotics and AI could cut build times by 20 to 50 per cent and reduce costs by about 20 per cent at scale.
CEDA and Urbis are calling on governments to adopt modern construction methods to meet housing targets.
MORE: $4.3 billion overdue: construction tops ATO tax hit list
It warns Australia is falling short of the National Housing Accord’s 1.2 million new dwellings by 2029.
“The speed at which new dwellings can be delivered is now a critical constraint,” CEDA head of research Danika Adams said.
She said dwellings built per construction worker had fallen 40 per cent since the 1970s, build times were up 40 per cent since the pandemic, and construction costs had surged 88 per cent since 2014–15.
“Traditional construction is not keeping up. These methods already exist, they work, and the challenge now is scaling.”
CEDA and Urbis want state governments to lead the shift, align planning, regulation, procurement, finance and supply chains, and prioritise regional and social housing.
CEDA and Urbis want state governments to lead the shift, align planning, regulation, procurement, finance and supply chains, and prioritise regional and social housing.
“We know this is a system‑wide challenge, which means it also needs a system‑wide response,” Urbis partner Clinton Ostwald said.
The recommendations collide with a labour market under pressure.
Apprenticeships Are Us managing director Michael Wentworth said the IAME findings reinforced concerns about the next generation entering the trade sector and were a potential blow to workforce participation and training pathways at a time of acute skills demand.
“We are seeing strong interest from young Australians who want to build careers in the trades, which is encouraging,” Mr Wentworth said.
“But the reality is they are now competing for fewer opportunities, due to the economic strain businesses are under, and many will also be managing their own personal cost of living pressures at the same time as they start out on apprentice wages.”
English (US) · 