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Construction industry challenges

In less than 18 months the construction industry is predicted to run into a major resources problem. Over 100,000 more workers will be needed to deliver the planned project pipeline. To anyone working in the construction industry, this will not come as a surprise. The construction industry is struggling and it has been for some time. The industry suffers from: some of the highest rates of insolvencies in Australia low productivity growth poor rates of female participation and high stress levels and suicide rates. No wonder the industry cannot attract and retain the people it needs! Governments and industry know this all too well. Infrastructure Australia has produced well-researched plans that align with calls from industry and state governments for reform. These reforms all target productivity and innovation, capability and capacity, digital adoption, culture and environment. If implemented, the plans would address these issues and unlock significant productivity gains. In fact, if we could just halve the gap in productivity growth between construction and other major industries, we could save $15 billion every year. Or better yet, construct additional schools, hospitals and roads in each and every state and territory for the same level of investment. But despite almost universal alignment on the problems and the cure, there is currently no mechanism for ensuring these reforms are implemented, let alone expedited, and this is putting at risk the delivery of the record pipeline of projects. We’ve scanned the sector to find solutions. The solution is FAIR - the Future of Australian Infrastructure Rating. Developed by the Australian Constructors Association, FAIR builds on the success of ratings schemes like NABERS, Green Star and the IS rating scheme to provide a consolidated national approach to reform. We’re calling on the Federal Government to commit to a FAIR scheme now. Visit constructors.com.au to find out more.