Rider Levett Bucknall RLB’s Post

According to the Rider Levett Bucknall RLB 3rd Quarter 2024 Oceania Construction Market Update, rising construction costs – driven by multiple factors – continue to make it increasingly challenging for the private sector to maintain project viability. However, government construction programs in health, corrections, education, and infrastructure are ensuring that order books for tier one contractors and subcontractors remain full. Tier two and three contractors have capacity, but the high demand for resources on major projects is driving costs to unsustainable levels for private sector projects. These contractors must match the EBA rates on major projects to attract and retain labour. Read RLB's analysis ▸ https://lnkd.in/gpZeA3PW Photo: Queens Wharf, Brisbane

According to the Rider Levett Bucknall RLB 3rd Quarter 2024 Oceania Construction Market Update, pricing continued to stabilise through the first three quarters of 2024 on shorter-duration, low-risk projects valued up to $50 million. This has been assisted by steady or modest increases to material prices. However, international transportation costs have risen significantly since the last quarter, which will start to increase the price of imported materials. There is still a wide pricing spread across most trades and head contractor preliminaries and margin costs, even on lower-risk projects. Read RLB's analysis ▸ https://lnkd.in/gpZeA3PW Photo: Design and Built Environment, Curtin University, Perth

According to the Rider Levett Bucknall RLB 3rd Quarter 2024 Oceania Construction Market Update, the construction market in NSW is experiencing persistent cost escalation pressures. Key drivers include strong demand for both labour and materials, compounded by supply chain issues and inflationary pressures from the global market. While materials like steel and energy commodities have seen price reductions, domestic factors such as high demand for quarry materials and skilled labour shortages continue to push construction costs up. Read RLB's analysis ▸ https://lnkd.in/gpZeA3PW Photo: Quay Quarter Tower, Sydney

This is a very challenging scenario for the Development Industry. At a time where we are experiencing a shortage of housing and the cost of living is reaching breaking point, further increases in construction costs are only going to cause the delay or shelving of more and more projects. Whilst construction workers in this instance may see a short term pay increase, many of them may find themselves looking for work in the medium term as the volume of construction continues to come to a halt.

Construction cost increases picked up again in the June quarter however it was Western Australia that showed the most significant acceleration in costs, dashing hopes of cheaper home availability. Labour continues to be a major contributor to the cost of construction and year-on-year increases in wages remain problematic to bringing down the cost of building a new home. The Australian Bureau of Statistics specifically pointed to a lack of finishing trades. Strong union activity, now the subject of a Senate inquiry has also contributed to low productivity in the industry. For the full report >>>https://lnkd.in/gkjTBN64

CIOB People CIOB calls for new government to address construction skills shortage Labour is being asked for urgent action on construction skills shortages and an ageing workforce The sector has welcomed the new Labour Government after it won a landslide victory last night, sweeping to power after 14 years in opposition. The Chartered Institute of Building (CIOB) called for stability and said construction has an important role in “improving social, economic and environmental outcomes in all areas of the UK”. Recruitment and skills It must also ensure the correct incentives are in place to drive construction businesses to recruit the number of qualified professionals needed to deliver the new government’s manifesto aims. Without a stable pipeline of competent workers, there are significant risks to the delivery and feasibility of housing and infrastructure projects and the new government will struggle to meet its own targets along with the needs of communities up and down the country. The construction sector is reliant on stability, and we urge the Labour government to ensure consistency and longevity with policymaking and its communications with industry.

According to the Rider Levett Bucknall RLB 3rd Quarter 2024 Construction Market Update for Australia and New Zealand, the construction industry in Australia is currently navigating a multi-faceted and challenging landscape. Ewen McDonald, Director of RLB Oceania Research & Development said, “Skilled labour shortages are a significant concern, driving up wage costs and creating intense competition for available workers.”  Key points in this issue: ▪ Strong pressure on project budgets and timelines ▪ Public and private sector projects competing for resources ▪ RLB’s Construction Update shows cost pressures most evident in Sydney ▪ Options limited for developers and asset owners in Adelaide and Darwin ▪ Rising construction costs in Brisbane impacting private sector Read RLB's analysis ▸ https://lnkd.in/gpZeA3PW

Construction needs clarity, stability, and vision from Labour, says sector https://lnkd.in/eWj4isDE #ConstructionUK #BuildingUK

Construction sector abuzz as Labour takes the reins. New policies and industry reactions making waves as midcaps soar. Follow us to know more industry developments. #AtThe4Front. 💡 🏗️ What does the Labour manifesto promise for UK construction? https://lnkd.in/enqWRarF 👷♀️ Construction industry reacts to historic Labour win https://lnkd.in/e3BYgup6 📈 London midcaps touch more than two-year highs as Labour Party returns to power https://lnkd.in/gsSfPYAf #4FrontRecruitment

CIOB People CIOB calls for new government to address construction skills shortage Labour is being asked for urgent action on construction skills shortages and an ageing workforce The sector has welcomed the new Labour Government after it won a landslide victory last night, sweeping to power after 14 years in opposition. The Chartered Institute of Building (CIOB) called for stability and said construction has an important role in “improving social, economic and environmental outcomes in all areas of the UK”. The institute said it is looking forward to working with the new government to fulfil the Labour Party’s manifesto pledges to build new homes, reform planning and improve home energy efficiency. But it added that to do this, stability is necessary, as well as help to address skills shortages and an ageing workforce. CIOB said the new housing minister should be appointed for the long term so they can build “meaningful relationships” with the sector. Director for policy, external affairs and research Eddie Tuttle said: “A new government offers the opportunity to build new relationships with policymakers and help them understand the challenges and opportunities for the sector.