The HIA Trades report for the March 2013 quarter presents an update highlighting the difficult conditions that continue to prevail in Australia's residential construction industry, says the Housing Industry Association.
The HIA Trades Report, a quarterly survey of builders and sub-contractors, indicates a relatively high availability of skilled labour continued into the first quarter of 2013, while developments in trade rates were benign.
"Skilled trades people continue to operate in weak conditions - residential construction experienced declining activity in 2012 and while there are signs of a recovery in 2013, it is from a very low starting point," said HIA Economist, Diwa Hopkins.
"An adequate provision of skilled labour will be a crucial ingredient to a recovery in new home building that is of the magnitude required by Australia's longer term housing needs," said Diwa Hopkins.
"A prolonged period of inadequate residential construction activity is not conducive to attracting new skilled labour into the industry, and this may undermine the longer term capacity of the industry to meet recovering demand. Improved support now for training will play an important role in mitigating this risk," added Diwa Hopkins.
The HIA Trade Availability Index eased slightly from +0.22 at the end of 2012 to +0.19 in the March quarter this year, meaning that trades were still in moderate oversupply (readings greater than 0.0 indicate oversupply).
The current soft conditions in the residential construction industry are also reflected in the relatively mild improvement the HIA Trade Prices Index. The Index increased by 2.7 per cent in the March 2013 quarter, off a very low base, to register an annual growth rate of 1.1 per cent.
"From a policy perspective, very little has changed since the last quarter. Policy decision-makers are still faced with the pressing need to address business certainty, for without that, building businesses will be reluctant to commit to taking on apprentices," added HIA Executive Director, Industry Workforce Development, Liz Greenwood.
"One positive message from these figures is for those consumers considering a new home or renovating an one - make the most of the current window of opportunity while skilled trades people are in more favourable supply."
