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.