Construction Sector Faces Skills Shortages Amid Transition in Australia
Updated: Jan 7
Australia: Infrastructure Australia’s latest market capacity report highlights ongoing challenges in the construction industry, including persistent skills shortages and cost escalations, as the country shifts focus to net zero infrastructure and housing solutions. The report shows a six-fold increase in renewable energy projects over the next five years, while transport investment has dropped by $32 billion AUD ($19.96 billion USD) to $126 billion AUD ($78.6 billion USD).
Investment in buildings and utilities has grown to $71 billion AUD ($44.2 billion USD) and $16 billion AUD ($9.98 billion USD), respectively, reflecting the transition to energy-efficient infrastructure. Adam Copp, CEO of Infrastructure Australia, emphasized that governments are focusing on the housing crisis and net zero initiatives.
Material costs have risen by 4.3% over the past year, now 30% higher than three years ago. Approximately 7% of the pipeline, or $15 billion AUD ($9.35 billion USD) in construction work, faces delays.
Regional investment patterns are shifting, with Victoria and New South Wales seeing declines of $9.5 billion AUD ($5.92 billion USD) and $27 billion AUD ($16.84 billion USD), respectively, while the Northern Territory and Queensland’s pipelines grew by a combined $16 billion AUD ($9.98 billion USD). Public investment in housing increased by $2 billion AUD ($1.25 billion USD), reaching $17 billion AUD ($10.65 billion USD).
Worker shortages persist across key sectors, including engineering, trades, and project management, though projected shortages have decreased compared to 2023. Copp urged the government and industry to address cultural issues in the sector, particularly to improve conditions for women in construction.
Source: Guardian