Today, I convened a roundtable with leaders from across the building and construction sector to discuss the impact of supply chain disruptions on housing supply and construction costs.
Representatives attended from the housing, construction, property development, plumbing, building materials (including cement, concrete, bricks and forestry products), chemicals and plastics, civil contracting, and transport and logistics industries. Representatives also attended from the Department of Treasury and the Department of Industry, Science and Resources.
The ongoing Middle East conflict has increased global economic uncertainty and is directly impacting Australia. Industry leaders raised concerns that fuel shortages are placing renewed pressure on manufacturers, suppliers, builders, and developers.
Industry also highlighted concerns about disruptions to polyvinyl chloride (PVC) and broader plastics manufacturing across Asia, the diesel‑intensive nature of civil construction activity, and the impacts of supply chain disruptions on apprentices and the broader skills pipeline.
Industry identified opportunities to strengthen collaboration with government and across the sector, including exploring pathways to access alternative markets and, where feasible, substitute inputs.
We will continue to work with industry to monitor price pressures and supply chain disruptions, with our focus remaining on supporting the sector to deliver the homes Australians need, even in a more uncertain global environment.
When we came to office the cost of construction was rising at 17.3 per cent a year, we’ve brought that down to 1.8 per cent, providing a stable foundation to tackle these pressures.
The Government has taken decisive action to increase the supply of fuel to consumers and industry by appointing a Fuel Supply Taskforce Coordinator to work with the states and territories, releasing diesel and fuel reserves, temporarily amending national standards to keep more Australian‑made fuel onshore, and increasing surveillance and penalties for misconduct.
Quotes attributable to Minister for Housing, Homelessness and Cities, Clare O’Neil MP
“Today, I met with a large group of industry leaders to discuss the housing supply chain disruptions arising from the Middle East conflict.
“What’s happening in the Middle East isn’t abstract – it’s clearly having real impacts here in Australia, and we’re staying closely engaged with industry to understand how we can support them to build more homes for Australians.”