Severe shortage of skilled workers and high material costs are among several issues
Western Australia is unlikely to meet the National Accord target of 25,000 new dwelling units per year at the current rate of construction, according to a new report by the Bankwest Curtin Economics Centre.
The report highlights significant challenges, including a severe shortage of skilled workers, fluctuating dwelling approvals, and high material costs.
Alan Duncan (pictured above), report co-author and director of the Bankwest Curtin Economics Centre, emphasised the need to address the workforce shortage through subsidies, incentives, and competitive relocation packages. He suggested accelerating the qualification process for overseas workers and providing hiring subsidies for new apprenticeships to fill critical gaps.
“Resources should be directed towards trades in highest demand, and the Construction Training Fund programme should be expanded to prioritise these areas,” Duncan said.
The report, titled “Building the Dream: The Future of Western Australia’s Construction Industry,” also found that Western Australia has 1.45 million spare bedrooms, indicating inefficient use of current housing stock and inadequate housing diversity.
“Improving the diversity of available housing options in WA and reducing transaction costs from stamp duty will encourage more ‘rightsizing’ among homeowners,” Duncan said.
The construction sector is also facing high attrition rates, with many workers leaving for other industries, particularly resources and manufacturing, and for other states like Queensland.
“Retaining skilled workers and new trainees is especially challenging for WA’s building and construction industry given the lure of other industry sectors,” Duncan said, stressing the need for improved relocation and apprenticeship packages to incentivise retention and prevent skills leakage.
The report advocates for better contracting practices to protect consumers and builders, suggesting that the government pilot new contracting approaches for public projects and invest in off-site and modular construction to diversify housing options.
Adam Crowe from the Curtin-AHURI Research Centre at Curtin University, another co-author of the report, highlighted the construction sector’s role in WA’s net zero transition.
“The environmental performance of WA’s construction industry has seen a steady decline in aggregate carbon emissions since 2007,” Crowe said, stressing the importance of “green” construction.
The report calls for government investment in low and zero-carbon building processes and the training of the workforce in sustainable construction methods.
“Strengthening local procurement and supply chains can help local businesses compete for contracts, and the government should lead by example, setting high environmental standards for its buildings and procurement processes,” Crowe said.
Recommendations include clear energy efficiency standards and mandatory energy performance disclosures for new developments. The report stresses that carbon market mechanisms should focus on actual emissions reductions rather than shifting high-carbon production elsewhere.
“The delivery of sustainable housing by the construction sector can significantly influence carbon emissions reductions,” Crowe said. “A strong, efficient, and innovative construction industry is integral to the state’s future economic, social, and environmental success.”
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