Despite supply chain problems, labour shortages and pandemic-related disruptions, 2022 will be a busy year for the industry, various architects, landscape architects and sector leaders have predicted.

Post-COVID retrofits for improved building ventilation and creating flexible work and education spaces are proving to be a source of work along with demand for climate-adaptive architecture.

Rising building costs from supply chain disruptions and labour shortages

Earlier this month, the RBA Governor Philip Lowe noted that it costs 7.5% more to build a new dwelling than it did 12 months ago. This is mainly due to the pandemic creating supply chain issues, leading to a sharp rise in the price of building materials.

“We probably haven't seen the full extent of what those building material shortages are going to be,” says Angelina Pillai, CEO at the Association of Consulting Architects (ACA). “However, we’re already experiencing significant price hikes and delays that will have flow-on impacts on projects, programs and budgets.”

Architectural practices are predicting the need to plan for further disruptions. Shaun Carter, the principal architect at Sydney-based Carter Williamson Architects says that his building collaborators have been procuring in-demand materials far in advance.

“One of our builders, for example, heard that timber was going to be in short supply. He bought every stick of timber required for the job and had it delivered from his reliable supplier.”

According to a recent report in the Australian Financial Review, workers – both skilled and unskilled – are in short supply, affecting 85% of businesses, with the civil construction industry taking a significant hit.

“Traditionally on a building site, we would see lots of students and skilled foreign workers,” Carter says. Not anymore, with two years of border restrictions.

“We're not importing talent at the moment,” ACA CEO Pillai says. “We’re also seeing that people coming out of architecture school [in Australia] are going into alternate professions, which is possibly a reflection of some of the other challenges the architecture profession is facing: lots of overtime and unpaid labour.”

Catherine Solari from Solari Architects in Wellington, NZ describes similar issues.

“We've got a housing crisis, a labour shortage and materials and shipping issues,” Solari says. “And on top of that, there is mounting pressure with finances. Banks are clamping down on the lending criteria for developers and first-time homebuyers.”

According to Australian Institute for Landscape Architects (AILA) president Claire Martin, COVID highlighted existing inequities but the recovery could be a game-changer.

Pandemic-driven opportunities

As architects and landscape architects play a crucial role in getting people safely back to the office, the campus and the city, Martin says, “[The pandemic] is really flagging the importance of investing in social infrastructure.” Hospitals, aged care facilities, education buildings and civic spaces are getting a boost.

“Buildings weren’t designed for COVID,” ACA CEO Pillai says. “Redesigning needs to take place.” For instance, retrofitting to improve ventilation.

Nathalie Ward and John Ilett, directors of urban design, landscape architecture and architecture practice LatStudios, also predict continued investment in COVID-safe renewal projects in the form of high-quality open spaces.

“Universities are building lots of outdoor learning spaces and outdoor recreation spaces,” Ward says. “They're trying to attract new students and retain workers.”

Their clients are trialling hybrid work models, with activities shifting between online, on-site, local and international.

With many people homebound for the better part of two years, there will be demand for residential projects, Carter anticipates. “We all sat and stared at our own walls for far too long. Everyone’s said, ‘my home could be so much more’.”

“In Brisbane, we’re seeing a lot of people who are moving up from Melbourne and Sydney,” says James Davidson, director of JDA Co., a firm specialising in climate-adaptive architecture. “People are really concerned about the storms and hail we get up here.”

Climate-responsive design

The demand for climate-adaptive architecture won’t slow down any time soon, says Davidson. “People are realising the risk. [Governments] are setting up natural peril and hazard teams to deal with the heat stress, storm tides, cyclones, flooding and bushfires that they know will affect their communities in the future.”

“Of course, one of the biggest issues we're facing is climate change,” LatStudios’ Ward concurs. “It's increasingly prominent in the media, and that much-needed attention is affecting the projects that we're involved in. We're doing a lot of work around visual impact assessment for wind farms and solar power.”

With buildings generating nearly 40% of global carbon emissions annually, sustainable design takes priority.

“We need to think beyond a narrow cycle of growth,” says AILA head Martin who stresses on the need for long-term design strategies to address the climate crisis.

Engaging with First Nations people

The upcoming federal election is putting a spotlight on the Uluru Statement from the Heart — the landmark call for a First Nations Voice enshrined in the Constitution. Meanwhile, Treaty negotiations with Traditional Owners continue in Victoria, Queensland, the ACT and the NT.

“The Treaty conversations are really significant,” Martin says.

LatStudios agrees. “More and more, we’re trying to help our clients understand the importance of engaging properly with Traditional Owners to build authentic and respectful projects on Country,” Ward says.

While working on the new Hervey Bay Esplanade master plan, LatStudios prioritised meaningful consultation with the Traditional Owners of the land, the Butchulla People.

2022 – Cause for optimism

It’s expected to be a bountiful year for the architecture industry in Australia and New Zealand.

“Our jobs board has never been busier,” says Martin.

“It's looking as though, from our perspective, while the economy did take a nosedive, the work will still keep coming in the door,” Ilett from the LatStudios team says.

“Where there is constraint, the architectural profession finds opportunity,” Carter says.

“There is a lot of demand,” says Solari from her Wellington office. “We’re aiming to deliver within the best possible time frames while being mindful of shifting realities.”

Pillai suggests an area of improvement for architects in the year ahead: “Fees, fees, fees. How can practices set realistic and profitable fees?”

All in all, though, there’s cause for optimism.

“Our sector is in a good position to ride out the disruptions,” JDA Co.’s Davidson says. “I have a very positive mindset.”