The construction sector remains confident

#constructionapocalypse #economy #heisesays
Even with so many construction companies collapsing, leaders in the sector remain confident.


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  1. Greetings from Ukraine. I am renovating my house I bought here. A wooden house with natural mud and white wash walls. I am putting in new flooring, concrete slab gas hot water heated floors in the kitchen bathroom, new kitchen bathroom, walls ceiling plastering. My biggest problem here is the language. My wife knows a bit of English now so she is my project manager. to her dismay. If any builders in Australia go bust come on over here and we will create a proper construction company because going through tradies here is a nightmare, everyone is an expert, need to find specialists, put them under one umbrella company then complete the massive rebuilding that will go on here using Russian seized assets to fund.

  2. So if building costs are going beserk and builders keep falling over will that mean a reduction in supply and support the current high prices that are around?

  3. The confidence will wane in the next 6 months, you can count on that!! Just wait for 6% as the lowest rate mortgage. It’s coming weather you like it or not. It’s either higher interest rates or lower dollar. Take your pick either one will have similar outcome.

  4. Yes its a fluff piece to say nothing is wrong everything back to normal when its not. Have silly people used their brains to think that even if the entire world is collapsing the RBA or government body will never say its bad. Its always challenging times blah blah read and think for yourself and act accordingly. Think for yourselves guys and protect yourselves don't be the dumb chump caught out in the cold.

    Move forward hoping for the best but plan for the worst. These silver spoon fed generation that know nothing but economic boom since they graduated have never seen hard times … or know of hard times but markets are cyclical everyone gets a ride up and down during their life time some people multiple turns in their lifetime its great time to be alive!

  5. You are focusing a lot on the consturtion companys failing, you have to remember that there is a whole supply chain that will collapse to, think of the knock on effect.

  6. Be interesting to see how many of these companies who are collapsing were signing clients to fixed price contracts knowing full well they either couldn't start construction for many months to years as they either didn't have the tradesman, or, in some cases I have personal knowledge of, the land wasn't even titled for another 2 years!

  7. My mate owns a medium teir building company in Brisbane (smart guy – has his finger on the pulse). He told me at dinner the other night, that the QBCC shut down 91 Qld builders last week because they weren't solvent. A 10x record. He (and I) agree with such Gov regulation because its designed to save ordinary buyers from collapsing builders. Im glad to see the regulators doing their job expediently and limiting the spread of consumer pain, even if its painful for those builders getting hit. Tough situation but hard decisions must be made.

  8. No doubt the construction industry remains confident.when it's always the poor old consumer left holding the bag.
    Kill it all with fire and let it re-grow organically on its own.

  9. It's pretty clear now that residential construction was the latest government sponsored industry via interest rate reduction.
    Water tanks,
    Solar panels,
    No long term benefit came from any of them.

  10. This a PR piece for Kennards to calm the market. They do very little work with home builders, mostly because there's no money in that sector of construction anymore. It's the DIY they're trying to save. If the market is worried, people won't spend and they'll lose 30% of their revenue.

  11. Well we have imigration going to happen and govenment is building 30 000 new homes and massive work to clean up and repair all the damage from floods.

    See economy is booming and people are spending, any down turn will recover quickly.

    I can see intergenerational mortgages for homes, meaning a young person takes out a loan and there grandchildren finnish paying for home. So we think houses are expensive now, just wait a year or two because I predict houses to boom and double from where there at now within 5 years. There is so much money about to flood our country, huge demand ready to happen, now is the time to hold onto your business as this christmas will be huge boom.

  12. As a software engineer I agree that larger businesses get massive benefits from software automation. Basically as the business grows inefficiency grows with every new hire and it will reach a point where the cost of expensive software engineering makes sense for a business as the efficiency gained will return more value than the outlay of software costs.

    My whole career has been doing work for business automation, mostly in mid market, mid to larger sized organisations. Small business can't justify the expense of software automation, but as they grow the justification becomes easier as their inefficiencies in process and software tools becomes a bigger pain point.

    As wages and inflation increase, software automation begins to boom, if a business is making 5 – 10% profit with a revenue of 500 million, spending 500k on software automation to gain 1% more profit is an attractive 5X to 10X return on investment.

    Most efficienies are gained through making mundane administration tasks around information management automated, and also from the analytics side, identifying and monitoring problem areas in business process that leads to inefficiencies and lower employee morale.

    Bigger businesses have problems, they are just issues different from smaller business associated to scaling.

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