Australian construction losing ‘AUD$47 billion’

Lack of productivity is costing the Australian construction industry AUD$47 billion (US$31.8 billion) a year, according to a report from the Australian Constructors Association.

The report added that construction productivity today is lower than it was in 1990 and that, since the peak of the resources boom in 2014, construction industry productivity has declined 16.5%.

Since 1990, the ‘gap’ between productivity of the construction industry and that of other industries has grown. Other industries achieved productivity growth of 31.8% since 1990, while construction has seen productivity fall 1.8% over the same period – a differential of 33.6%.

“The link between improved productivity and industry sustainability is strong. Improvements to the industry’s productivity performance could save Australia $47 billion annually,” says the report.

“Savings of this magnitude would go a long way in improving Australia’s budget bottom line and establishing Australia’s construction industry as a worldwide leader representing best practice.”

The report also highlighted a lack of willing workers to be one of the most pressing issues facing the Australian construction industry.