More than 80 per cent of industry leaders are confident in the future of Australia’s construction industry despite the recent collapses of major companies, new research shows.
The inaugural Kennards Hire Construction Confidence Check, published this week, shows a significant majority of industry leaders believe growth in residential and commercial buildings will sustain the industry over the next five years.
The findings of the research, which polled 259 business leaders in April, comes despite the heavy blows sustained by the industry this year, including the collapse of giants Probuild and Condev.
Kennards Hire general manager commercial Tony Symons said the research painted a promising picture.
“Despite the number of construction companies reported to be folding, our research shows business leaders in the construction industry have a remarkable amount of confidence in the sector,” Mr Symons said.
But he qualified his remarks by saying significant cost challenges faced the industry.
“Supply chain issues remain a pain point for many at the bigger end of town, impacting the ability to deliver projects on time and on budget,” Mr Symons said.
The research said industry leaders still feared the rising cost of materials, supply chain difficulties and a shortage of skilled, qualified labour.
But the majority of bosses said current setbacks encouraged more financial responsibility in the sector, and most said they were now better prepared for unforeseen losses.
Rising costs in the industry have seen a number of leading construction companies dramatically collapse this year.
Earlier this month, Victorian companies Wulfron Construction and Westernpoint Construction went into administration.
One father-of-two was left $300,000 out of pocket when Wulfron’s business collapsed, leaving him with a half-built home.
Last month Russ Stephens, co-founder of the Association of Professional Builders, told news.com.au that more than half of Australia’s 12,000 companies were trading at a loss, with at least 50 per cent of companies experiencing negative equity.