Building chaos as trades go bankrupt amid soaring prices for building materials – amid warning Australia could run out of timber in EIGHT weeks
There are growing fears that thousands of businesses could go bankrupt as Australia faces a nationwide timber shortage that could see the country run out of supplies within eight weeks.
This is on top of soaring building material prices, other supply chain issues, a severe skills shortage and rising labor costs.
A host of construction companies have already gone bankrupt, and traders say thousands of other operators are on the brink of collapse.
Andrew Jlavery, of Arc Joinery, said the timber shortage would put increasing pressure on smallholders struggling to make ends meet.
Traders fear the worst with timber supplies set to dry up within 2-3 months (stock image)
“The biggest pinch we feel is all around materials, and from what I’ve heard amongst my peers, we’re looking at 8-12 weeks, and we’ll run out of wood products in Australia,” he said. he declares. told the Today Show on Thursday.
“You have this whole situation in Ukraine and in Russia, and there is in Ukraine and in Russia, and there is also a potential embargo on Russian products entering the country.”
Operators are also ready to be hammered by other factors over which they have no control.
A shortage of skilled overseas workers due to border closures since the start of the pandemic has also crippled the industry with skyrocketing labor and material costs.
“I think it’s a bit of a perfect storm. COVID has impacted the world, not just Australia,’ Mr Jlavery said.
Andrew Jlavery (pictured) said a looming timber shortage will put increasing pressure on smallholders on the brink of collapse
ProBuild is one of many large construction companies that have collapsed in recent weeks
“I really feel for the small businesses you hear about in the news.
“These are small businesses that are actually really solid businesses and they just fell victim to unfortunate circumstances beyond their control.”
“With the borders closed as well, there was a lot of labor they relied on to come overseas and that drove up labor costs.
“And the same with hardware.”
Mr Jlavery said he felt for consumers for the end of the day who will have to deal with rising prices and called on governments to work alongside the construction industry to stop the escalation of crisis.
Andrew Jlavery (pictured with Arc Joinery staff) has expressed serious fears for the construction industry as smaller operators are on the brink of collapse