Australia

Master Builder Victoria looks to Europe to ease construction problems

A delegation led by Master Builder Victoria will seek to pluck international expertise to help revitalize the state’s struggling construction sector.

The delegation will meet with industry stakeholders from Europe, Canada and the US as part of an international research project in support of Victoria’s post-COVID building and construction industry.

Shangri-La Melbourne under construction.Victoria’s construction costs rose faster than any other statecredit: attached

With material prices soaring, Victoria’s construction costs are rising faster than any other state, and business failures are on the rise, leaving hundreds of millions of dollars’ worth of projects hanging in the air.

Rebecca Casson, Chief Executive Officer of Master Builders Victoria, said many of the state’s builders are suffering from skills and labor shortages, ongoing material price increases, significant stress at work and mental health issues. He said he was struggling with profitability as he dealt with it.

A critical shortage of skilled craftsmen is also exacerbating the crisis, Casson said, creating a divide between carpenters, bricklayers, project managers and building surveyors in the industry.

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Timber prices have risen by about 40% over the past three years, and the war in Ukraine has led to a 25% increase in prices for timber products from Russia this year. The cost of steel rose 30-60% last year, while the cost of electricity and concrete he said 20-40%.

Casson said the research project and study tour were “very timely” given the multiple challenges affecting the building and construction industry in Victoria.

The construction industry is Victoria’s third largest full-time employer, accounting for around 11% of full-time employment in Victoria as of June this year.

Master Builder Victoria looks to Europe to ease construction problems

Source link Master Builder Victoria looks to Europe to ease construction problems

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