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Construction worker turnover puts Australia’s housing ambitions at risk

Construction worker turnover puts Australia’s housing ambitions at risk

As Australia continues to grapple with housing supply pressures, the ability of construction businesses to retain skilled workers could be just as important as attracting new talent to the industry.

Workforce shortages continue to present challenges across the construction sector, with employers competing for experienced tradespeople, apprentices and skilled workers in an increasingly competitive labour market.

While much of the conversation around housing delivery focuses on bringing more workers into the industry, retaining experienced employees is an equally important part of the workforce equation. High employee turnover can place additional pressure on construction businesses already navigating skills shortages, increasing recruitment costs, disrupting projects and resulting in the loss of valuable expertise and institutional knowledge.

With demand for skilled construction workers expected to remain strong, creating workplaces where employees feel supported, engaged and motivated to stay could play an important role in helping businesses build stable workforces and support future housing delivery.

Gazelle Kalk, Associate Director - Content and Training at Peninsula Australia, said: “The challenge for construction businesses isn't simply attracting workers. It's retaining the skilled employees they already have.

“Many employers are competing for the same pool of experienced tradespeople. In that environment, businesses that fail to engage and support their workforce may find it increasingly difficult to hold on to key talent. Moreover, replacing skilled workers often involves hiring expenses, onboarding time, training costs and potential disruptions to project delivery.”

“Australia's housing ambitions ultimately depend on having a stable and skilled construction workforce,” Ms Kalk added. “While attracting new talent into the industry remains important, businesses also need to consider what they're doing to retain the people they already have. While competitive pay remains important, it is rarely the only factor influencing retention. Workers are increasingly looking for employers that offer clear communication, supportive management, opportunities for development and realistic workloads.”

“In an industry facing ongoing labour shortages, rising costs and project pressures, employers should not underestimate the importance of workplace culture. Open communication, effective leadership and practical support for employees can contribute to improved engagement, lower turnover and a more resilient workforce.”

“For many construction employers, the most effective recruitment strategy may ultimately be making sure they don't lose the experienced people already on their team. Investing in employee retention can help reduce hiring pressures, protect business knowledge and support long-term growth,” she concluded.

About Peninsula Australia
Peninsula is a leading workplace advisory firm across Australia and New Zealand, supporting over 30,500 SMEs with workplace relations and workplace health and safety. Through its advice line and on-site support, businesses gain direct access to experienced workplace relations and health & safety specialists who help them navigate employment law, the Fair Work Act, and health and safety obligations with confidence.

Visit: https://peninsulagrouplimited.com.au

What does the truck driver shortage mean for Australian construction?

What does the truck driver shortage mean for Australian construction?

by Adam Amato, Route Optimisation Specialist at NowGo by Shippit

Half of all major infrastructure projects saw their costs increase in recent years, according to Infrastructure Australia data. Meanwhile, the average build time for a residential property has stretched from six to 10 months, according to the Productivity Commission.

Whether big or small, the successful delivery of projects on time and on budget is being undermined by a worrying (and growing) labour shortage in the supply chain that services it. Australia is currently 12% short of the drivers it needs to service a growing freight profile, according to the IRU's Global Driver Shortage Report.

What’s more, 24% of the existing workforce, equating to over 43,000 drivers, is set to retire by 2030.

Steel and concrete, plasterboard and plant, all arrive on a truck that someone has to drive. So a shortage in labour upstream, quickly becomes delivery windows that are missed, trades standing idle, and project timelines and budgets at risk.

According to research by NowGo by Shippit, a route optimisation software used by complex Australian fleets, 71% of fleet operators say labour shortages result in peak period delays or higher costs to serve. To cope, 86% have extended operating hours and 57% have brought on temporary drivers, but both are expensive short-term fixes that tend to be passed back to the site manager in the shape of higher freight costs.

But labour isn’t the only pressure impacting the access to, and cost of, critical construction materials. Almost three quarters (71%) of fleets say fuel price volatility is their biggest operational challenge in 2026, with almost half passing temporary fuel surcharges onto their customers.

For site managers, the reliability of the supply chain that services them is still being held together by overtime and surcharges. That’s a fragile, short-term fix to an issue that requires a longer-term solution.

That’s why 71% of fleets say route optimisation software is their top technology investment. At a time of critical labour shortages, getting more out of every driver and every kilometre is no longer a nice-to-have; it’s critical for suppliers and the construction sector they serve. Optimisation is how fleets like Reece and Mitre 10 are maintaining delivery promises for major and local construction projects across Australia.

It’s a challenging environment facing suppliers; a perfect storm of labour shortages, fuel price volatility, contracting margins, and heightened customer expectations. But those that focus on long-term fleet optimisation, rather than short-term fixes, will be better placed to protect margins and customer relationships. With Australia currently lagging on building targets, that’s the supply chain the construction sector needs.

Syncorana Group and Steco Centar to establish advanced prefabricated housing manufacturing and training facility in Australia

Syncorana Group and Steco Centar to establish advanced prefabricated housing manufacturing and training facility in Australia

Australian-based Syncorana Group and Bosnia and Herzegovina’s Steco Centar – a leading manufacturer of prefabricated building systems - recently announced the execution of a landmark Joint Venture Agreement to establish Steco (Australia) Pty Ltd, a new company that will introduce high-quality prefabricated homes in Australia and Oceania.

The partnership combines Syncorana's strategic vision for Indigenous economic development including housing manufacture and building and workforce training with Steco's thirty years of experience in the design and manufacture of prefabricated housing systems.

The joint venture represents a significant step towards establishing an advanced manufacturing facility capable of supporting Australia's growing demand for affordable, sustainable and high-quality housing solutions. The new facility is designed to create highly skilled jobs, strengthen sovereign manufacturing capability and support long-term industry growth.

Under the agreement, the parties intend to establish a local manufacturing operation at an estimated cost of around AU$150 million capable of scaling to produce three thousand prefabricated homes per annum using advanced European manufacturing technology adapted to Australian standards and market requirements.

A distinguishing feature of the proposed Australian facility will be the inclusion of Syncorana’s registered training organisation - Living Planit/Dreamtime Institute of Training and Management - designed to become a national centre of training excellence for prefabricated construction, advanced manufacturing and modern building techniques. The integrated training facility is intended to support the development of a highly skilled Indigenous and non-Indigenous workforce capable of manufacturing, assembling and installing prefabricated building systems for the Australian market.

The venture will seek to supply a broad range of construction markets including residential housing, Indigenous affordable and social housing, early childhood learning and aged care centres, workforce accommodation and commercial developments. It complements Syncorana’s Indigenous housing strategy planned for implementation via its national network of Indigenous partnerships.

Steco (Australia) also intends to collaborate with strategic partners, government, institutional investors, developers and builders and community housing providers to expand the use of prefabricated construction systems throughout Oceania. This initiative will assist in addressing Australia's housing supply challenges while contributing to national economic development and increasing participation by Aboriginal and Torres Strait Islander peoples in the construction and manufacturing sectors.

Speaking about the new JV, Carlton Taya, Chief Executive Officer and Managing Director, Syncorana Group said: “The joint venture marks a defining milestone in the evolution of Syncorana. Our partnership with Steco Centar brings together proven international manufacturing and building expertise with an Australian vision to transform the way homes are built.”

“Australia is facing one of the most significant housing supply challenges in its history. Through this joint venture we intend to establish advanced manufacturing capability that can deliver high-quality prefabricated housing faster, more efficiently and at scale,” he said.

“This partnership is about much more than manufacturing. It is about creating skilled jobs, supporting Indigenous economic participation, developing the next generation of workers through our training centre of excellence, and using technology and artificial intelligence to build a smarter and more sustainable housing industry,” Mr Taya said.

“Importantly, this initiative will provide meaningful training and employment pathways for Aboriginal and Torres Strait Islander peoples, apprentices, school leavers, veterans and workers seeking to transition into advanced manufacturing and modern construction.”

“We are delighted to be partnering with Steco Centar, a world leader in prefabricated housing manufacture and look forward to building a long-term business that delivers value for our shareholders, customers, government partners and Indigenous communities across Australia,” he said.

These sentiments were echoed by Milenko Stevanović, Chairman, Steco Centar, who added: “We are proud to enter into this strategic partnership with Syncorana and to support the establishment of advanced prefabricated housing manufacturing in Australia.”

“Steco Centar has spent many years developing innovative building technologies and manufacturing systems. We believe Australia represents an exciting opportunity to apply our experience to one of the world's most dynamic housing markets.”

“Syncorana shares our commitment to quality, innovation and long-term growth. Together we intend to combine European engineering expertise with Australian manufacturing capability to deliver world-class housing solutions,” he said.

“We are also delighted that our Australian partnership will include a dedicated training centre where our engineering knowledge and manufacturing systems can be transferred to a new generation of Australian professionals,” he added. “By integrating education with manufacturing, we will help ensure that Australian workers are trained to the highest international standards while supporting the long-term success of the joint venture.”