Construction costs rise as labour shortages worsen and demand grows
Turner & Townsend report finds AI infrastructure and data centre construction is worsening labour shortages across Australia's construction sector, pushing up costs as demand grows.
Why are construction costs rising in Australia and how will labour shortages affect my trade business?
Builders, electricians and plumbers face tighter labour markets and rising project costs as AI-driven construction competes for the same skilled trades.
Key takeaways
- AI infrastructure and data centre builds are competing directly with traditional construction for skilled tradespeople.
- Labour shortages are worsening across Australia's construction sector, according to Turner & Townsend.
- Rising demand combined with tight labour supply is pushing construction costs higher nationally.
- Tradies may find increased work opportunities but face pressure from higher wages and project delays.
Related
Queensland to invest $95M to fast-track 4,900 new homes
Queensland is investing $95M through its Residential Activation Fund Round 2 to build trunk infrastructure and deliver 4,900 new homes across North Queensland.
Why it matters: Builders, plumbers, and electricians in North Queensland can expect a surge in residential project work as infrastructure is laid and new housing construction ramps up.
New labour data hits as unemployment rises to 4.5 per cent
ABS Labour Force data shows unemployment has risen to 4.5 per cent, with flow-on effects expected for the building and construction sector.
Why it matters: Builders and trades businesses may see shifts in worker availability and wage pressures as unemployment rises. Could affect hiring costs and project labour supply.
Tackling the building site crime wave
HIA members are reporting a rise in theft at residential building sites, with incidents expanding beyond the longstanding issue of copper theft to a broader range of materials and equipment.
Why it matters: Builders, electricians and plumbers face direct losses from stolen materials and tools, increasing project costs and causing delays on residential jobs.