Employer Industry Briefing: Construction Starts down, Government action required

Posted on Nov 09, 2020

As our industry returns to capacity, we face unprecedented challenges and an uncertain future.

Incolink remains your Safety Net. Over the past several months we have completed over 20,0000 tests on-site to help keep our industry open and safe.

The outlook shows a 26% short term surge in projects starts in Australia, against the backdrop of a 21% decline over the preceding 12 months, according to BCI Australia.

Due to enforced Government restrictions and new COVID-safe operating requirements the practical requirements for commencing a project have become more onerous.

Governments across Australia have intervened to incentivise builders and contractors to commence projects. But we’re short of the demand needed, with immigration ceased and no new market stimulated. New home buyers need more assistance and social housing in Victoria remains an area of obvious unmet demand and opportunity. Now, more than ever government has the social license to make long-lasting reform.

In Victoria, short-term construction starts are down 11%, with the long-term decline now at 11% over the preceding 12-month period. This short-term data in unsurprising given Melbourne has only just exited Stage 4 restrictions, which saw site capacity reduced to 25% of the usual total workforce for the vast majority of projects for most of August and September, followed by another month of operation at 85% capacity.

A detailed breakdown forecast of construction activity by sector is included in the BCI report below.

Incolink continues to work with key stakeholders to advocate for our industry and to remove regulatory bottlenecks. It is imperative governments across the country appreciate the social and economic consequences of the building and construction sector and seek to promote and support the sector.

We are helping stakeholders advocate to government and investing in projects to improve the outlook for our sector.

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