Eight in ten senior business leaders in construction believe the construction industry in Australia is stable, according to Kennards Hire 2022 Construction Confidence Check.
The 2022 Construction Confidence Check draws on survey results conducted by YouGov Galaxy in April 2022.
The sample comprised 259 senior business leaders from construction businesses with more than 20 employees. Data was weighted by age, gender, and region to reflect the latest ABS population estimates.
According to the Confidence Check, senior business leaders in the construction sector surveyed believed that the biggest causes for concern that could impact the stability of the construction industry is the rising cost of materials (47%), supply chain issues (46%) and skilled labour (42%).
Other common challenges reported to cause issues are poor productivity from delays due to weather, breakdown of equipment and late deliveries of materials (36%).
However, 82 per cent of senior business leaders surveyed said that their business is now more financially responsible and prepared for unexpected costs in their business as a result of the events of the past two years, including the pandemic, bushfires, floods, and droughts.
Within this, 44 per cent said their business is a lot more financially responsible.
The survey found that Victorian and New South Wales construction leaders were most confident the construction industry in Australia is well-placed to withstand pressures on the sector and will continue to grow.
Nationally, infrastructure (27%), residential property (23%) and commercial property (17%) are the industries most likely to be seen by those surveyed as driving stability and growth in the construction sector over the next five years.
“Despite the number of construction companies reported to be folding, our research shows business leaders in the construction industry show a remarkable amount of confidence in the sector,” Kennards Hire general manager commercial Tony Symons said.
“Supply chain issues however still remain a pain point for many at the bigger end of town impacting the ability to deliver projects on time and on budget.
“With the profit margins these companies operate on and the rising focus on sustainability the rental market can assist in managing costs and positively contributing to the circular economy,” he said.