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14 Aug 2017

Australian skilled trades falls below demand

Australian tradesmen are struggling to keep up as the country's residential building market grows. Owing to the rapid rise of the residential construction industry in Australia; many trades are lacking seasoned professionals to meet market demand. According to the Housing Industry Association's recent Trades Report; bricklaying suffered the worst shortage; measuring -0.82 on the index (anything between 0 and -1 signals a slight undersupply). Moreover; finishing trades such as roofing; ceramic tiling; glazing and security systems are also experiencing insufficiency. On the other hand; however; electrical; landscaping; plumbing and site preparation sectors are witnessing a modest oversupply. All across Australia; the tight availability of residential traders has caused tangible strain while home building activity in eastern states continues to increase. Geographically; major states such as Sydney and parts of South Australia are witnessing a general dip in the supply of experienced tradespeople. Only Perth and Western Australia have managed to stay afloat despite the growing demand. During the 12 months to leading up to March 2017; 221;761 residential homes have been built across Australia. A record topped only by the March 2016 cycle; the statistics are suggesting a steady growth despite a minor curb in construction approvals. According to the National Centre for Vocational Education Research; the Australian Building Boom has led to an increase of 7;600 new apprentices between June 2014 to June 2016. However; the overall shortage has nevertheless fed tension into industry; driving the trade pricing up 2.7 per cent. The effects are felt especially in regional South Australia and Adelaide; where trade prices have gone up by 27.3 per cent and 8.6 per cent respectively.

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