Construction News Round-Up - May 2024

By Clea Boyd-Eedle, published 31 May 2024

UK Construction Industry Workforce Crisis: 10,000 Workers Needed by 2029

A recent report from the Construction and Trade Business Institute (CTBI) has predicted that an extra 10,000 construction workers are required over the next five years to meet industry demands.

Factors such as the UK’s ageing workforce, a lack of young talent, and increasing project complexities have been attributed to the gap in available labour.

The report proposes a multifaceted approach to addressing these issues. This includes vocational training programs, apprenticeships, and partnerships with educational institutions, and embracing the adoption of technology and automation to reduce the reliance on manual labour.

Lendlease to pull out of UK, selling its overseas construction operations

Australia-based construction giant Lendlease has announced it’ll be pulling out of the UK and selling its overseas construction businesses. The move follows low overseas construction earnings and a number of delays to large-scale projects.

Lendlease will now be focusing its efforts on its Australian operations, but will still retain its international investment platform.

UK trade deal to boost construction output

The UK has ratified an agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), alongside Australia, Japan and Canada. The Department for Business and Trade claims that this move could boost construction output by £119m a year.

One of the biggest impacts of the agreement is the elimination of tariffs on UK exports to a number of countries, reducing export barriers for materials produced in the UK. The CPTPP also acts as a global network for expanding trade and partnerships across international construction industries.

Construction started on record 18,000 new homes in Ireland last month

Data from The Department of Housing, Local Government and Heritage shows that 18,182 homes commenced building in April 2024, up 605% YoY. The figure is the highest since records of commencements began in 2014.

The Minister for Housing, Local Government and Heritage, Darragh O’Brien, attributed the significant spike to last year’s introduction of the development levy waiver and Uisce Éireann connection charge rebate.

Australia & New Zealand Construction News

Australia to miss target of 1.2 million new homes by 2029

An independent State of the Housing System report by the National Housing Supply and Affordability Council has forecasted Australia will miss its target of building 1.2 million new homes by 2029.

Lagging construction times, unaffordable mortgages and rents, plus an increase in demand are the key factors the report has highlighted that are influencing Australia’s housing crisis.

Council chair Susan Lloyd-Hurwitz warned that even if all other factors are addressed, Australia still does not have the construction capacity to complete the target within 5 years.

Millions pledged to cover fee-free TAFE to get more workers into construction in Australia

Australia’s 2024-2025 budget has allocated almost $90 million to growing the construction and housing workforce. The funding will be used to address skills shortages and progress the government’s target of building 1.2 million homes by 2029.

20,000 fee-free TAFE and VET training spots will be funded, as well as fast-tracking applications and work approvals for 4,500 migrants - both critical strategies in addressing construction’s current labour shortage.

Australia Construction Industry Report 2024 - finding summary

A recent report has found that the growth of Australia’s construction sector is expected to drop significantly to 2% in 2024, down from 9% in 2023. A decline in building permits, labour and material shortages, and high construction costs are identified as key factors causing the decline.

ABS data shows that last year the average number of people employed in construction fell 1.9% and construction companies filing for insolvency rose 42%. Despite these statistics, the industry is expected to experience an average annual growth rate of 2.8% from 2025 to 2028.

Changes to NZ Building Act aim to streamline changes on consents

The NZ Government has announced new regulations to the Building Act that allow for minor changes to be made to a building consent without needing to resubmit. This move will help to reduce delays and lower the cost of building.

Stats NZ has found that it takes on average 569 days for a home to be built in New Zealand after a building consent has been received.

New NZ scheme aims to keep leftover building materials out of landfill

Trash 2 Treasure is a scheme that has been set up by a Christchurch environmental group that takes leftover building materials from construction companies, reducing landfill. Big firms, like Naylor Love, have already donated sizable amounts of materials.

Once materials are donated, the environmental group then allows the materials to be either reused or disposed of responsibly - significantly reducing the environmental impact of construction projects and benefitting the wider community with cheaper access to building materials.