Building delays amid worsening SA materials supply crisis, industry boss warns
The boss of Master Builders SA says his phone is ringing off the hook as members struggle with a materials supply crisis caused by the war in the Middle East, and major projects are tipped to experience blow outs.
Just one key building input’s cost has spiralled by between 20 and 30 per cent, the CEO of Master Builders SA Will Frogley told InDaily, with the construction industry expecting pricier and delayed home builds.
Frogley singled out quarry product prices as skyrocketing, saying there were “some legitimate reasons for some price increases, but we just want to make sure there’s no price gouging going on”.
While the supply of extensively used oil-based PVC pipes was now the industry’s “biggest supply challenge”.
“If you can’t get the pipes in the ground, you can’t pour a slab. That then holds up all the building work after it,” Frogley said.
“We’re seeing the unfortunate realities of the laws of supply and demand playing out before our eyes every day.”
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Supply chain issues were largely being driven by the ongoing war in the Middle East, particularly around oil-based products like PVC pipes and petrol.
Until the supply chain frees up, Frogley said, “you can expect to see building times increase”.
“We’re hoping that clients, whether they be home buyers or private sector clients or government, could be understanding of the situation where there are factors outside of builders’ control at the moment.”
And potential delays to major state government projects were of concern to the CEO saying “You’ll certainly see them take longer and probably cost more as well”.
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Frogley said he was taking more phone calls from members seeking advice or a sympathetic ear than at any time since COVID.
He was concerned the crisis could take a toll on the industry more broadly.
“People are unsure about what to do, because they don’t know how big the impact is going to be and how long it’s going to go on for,” he said.
“Builders are resilient. They’re already changing their business models to try and adapt.
“With every crisis, there are opportunities to look at the way builders operate and what they can do better.”
A state government spokesperson said he was not aware of delays to major state government projects like the $3.2bn Women’s and Children’s Hospital and the $15.4bn Torrens to Darlington road project.
“The state government continues to monitor global economic conditions and their impact on the construction sector, including supply chain pressures and input cost volatility,” he said.
“We continue to engage regularly with industry stakeholders, including Master Builders SA, and will consider their feedback carefully as we assess the situation.”
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