Construction industry faces ‘frayed nerves’ in 2023 amid twin spikes in rate hikes and inflation

Builders like Richard Oliver have had a tough time of it over the past year, and while there are early signs that one of their key problems has been solved, other big threats are emerging that could overwhelm even more construction firms. let them

The single biggest challenge for builders like Mr Oliver over the past few years has been sourcing enough materials at affordable prices, as supply chain problems have affected everything from timber to bricks.

The latest price increases the Darwin-based homebuilder has noticed include steel for building frames and aluminum finishes.

“In some cases, we’ve seen 50 percent [increases] across the steel market, he told ABC News.

“Steel [is used] From the preliminary stages of the reinforcements in the slab or foundations right through the steel wall frame of the structure, the construction of the roof, cladding, windows, aluminum windows.

Steel can make up 50 or 60 percent of the actual construction here in the Northern Territory.

The cost of building materials is still increasing, just a little less

There may be a lull in store amid signs that building materials prices may be nearing a peak.

Producer price indices released by the Australian Bureau of Statistics (ABS) on Friday showed that increases in the cost of building materials used in homes eased again in the December quarter.

According to the ABS, Mr Oliver’s steel pricing woes may soon be over, with steel product prices down 2.1% in the final three months of last year on lower steel costs, improved supply conditions and lower freight costs.