Master Builders Australia survey shows orders have "fallen off a cliff"

Master Builders Australia survey shows orders have "fallen off a cliff"

A survey of builders and tradies around the country has found new work could run out in the next few months if orders don't pick up.

Master Builders Australia CEO Denita Wawn describes the results of a recent Covid-19 impacts survey as "alarming", with 73 per cent of respondents reporting substantial fall in forward work on their books.

On average respondents reported a 40 per cent drop.

"While projects that commenced prior to the onset of the Covid-19 crisis are providing short term work for many, for the overwhelming majority of our 32,000 members new orders have fallen off a cliff," says Wawn.

"The situation is dangerous. At risk is the viability of nearly 400,000 building and construction businesses, the jobs of 1.2 million Australians and the industry's capacity to aid the economic recovery.

The executive adds the home building sector is being hit especially hard.

"Confusion about how domestic building activity fits in with government safety rules combined with job losses and business closures is having a devastating impact on demand for new residential building activity," she says.

"So, while we strongly back the current measures to support businesses and jobs, we are calling on all governments to urgently rollout new stimulus measures that will immediately kick-start building activity.

"Increasing the size of the First Home Loan Deposit Scheme and expanding its eligibility to include anyone wanting to purchase only new homes while maintaining the current price and income caps is just one of a range of measures we have proposed to the Federal Government."

Wawn explains commercial and civil construction contractors also urgently need a forward pipeline of work.

"Our calls for governments at all levels to accelerate the construction of social, defence and transport infrastructure projects will continue to be relentless," she says.

"Our message to governments, is that we understand the enormity of the challenge they face but that these stimulus measures cannot wait. If urgent action is not taken our industry's role in the economic recovery will be severely blunted."

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

SMEs urged to consider business insurance to mitigate financial risks
Partner Content
A single “bad luck” incident could cause financial disaster for many Australian sma...
Advertisement

Related Stories

Federal Court shows Qantas no mercy with $100m fine for selling cancelled flight tickets

Federal Court shows Qantas no mercy with $100m fine for selling cancelled flight tickets

The Federal Court has shown Qantas Airways no mercy for selling tic...

Salter Brothers tops up hotel portfolio with acquisition of Bannisters group’s three NSW properties

Salter Brothers tops up hotel portfolio with acquisition of Bannisters group’s three NSW properties

Salter Brothers has topped up its $2 billion hotel portfolio throug...

Vision for a zero-waste venture dashed as Circonomy calls in voluntary liquidators

Vision for a zero-waste venture dashed as Circonomy calls in voluntary liquidators

The vision to grow Australia’s first recovery, repair and res...

Business transaction funder Butn taps into retail private credit market to pursue growth

Business transaction funder Butn taps into retail private credit market to pursue growth

Melbourne-based fintech Butn (ASX: BTN), a company that provides tr...