Labour and Supply Costs Continue to Rise in WA

Supply pressures that have persisted throughout the Covid-19 fall-out have finally eased for the construction industry in Western Australia. However, the costs and labour shortages continue to grow. In only 3 months, construction costs in the state rose 3.3%. This is the average rise for 12 months.

The cost pressures in the residential construction industry are expected to ‘wane within six months,’ according to Planning Minister Rita Saffioti.

Jamie Rowntree, a boutique residential builder in WA, explained that he has not has much trouble sourcing labour and materials. He attributes the efficiency to a new standard of paying bills within an hour of receiving the invoice, which was not always expected within the industry. “If we are asking people to do the best by us, we have to do the best by them,” he said.

Mr Rowntree said some materials, including scaffolding and hoists, remained in tight supply and were continuing to create pipeline blockages for other builders.

Although sales in the residential construction industry have slowed, there is plenty of construction work in the pipeline throughout the nation. Seasonally adjusted figures from the Australian Bureau of Statistics show this, with the number of dwelling approvals rising by 38.7%.