12, 2023
Challenges WA Builders are facing in 2023
Challenges WA Builders are facing in 2023
Western Australia, a state known for its booming mining industry, is currently grappling with a crisis in its construction sector. The recent spate of builder insolvencies paints a grim picture, revealing deep-rooted challenges that threaten the very foundation of the state’s building industry.
The Domino Effect of WA Builder Collapses
The construction landscape in Western Australia has been marred by a series of builder collapses. Notable names like New Sensation Homes, Home Innovation Builders, and more recently, WA Housing Group and Individual Developments, have succumbed to the pressures, leaving behind a trail of unfinished homes and shattered dreams.
The Underpinning Factors
Several intertwined factors have contributed to this precarious situation:
- Economic Pressures: The post-pandemic era brought with it a surge in demand, thanks in part to government stimuli like the HomeBuilder grant. However, this boon soon turned bane as fixed-price contracts became untenable in the face of soaring prices.
- Supply Chain Woes: The global pandemic has disrupted supply chains, leading to material shortages and consequent price hikes. These disruptions have not only inflated costs but also extended project timelines.
- Labor Shortages: Western Australia’s prolonged border closures have exacerbated labor shortages. The state’s construction industry, already grappling with rising costs, now faces the added challenge of finding skilled workers to meet the demand.
- Regulatory and Financial Strains: The rapid influx of demand, coupled with flat market conditions from previous years, has left many builders struggling to adapt. The financial strain, further intensified by regulatory challenges, has pushed many to the brink.
The Broader Implications
The ramifications of these challenges are far-reaching:
- Economic Impact: The construction sector is a significant contributor to Western Australia’s economy. Builder insolvencies not only disrupt the housing market but also ripple through related industries, affecting employment and economic stability.
- Homeowners in Limbo: With builders folding, many Western Australians find their dream homes stalled midway. The emotional and financial toll on these homeowners is immeasurable.
The Path Forward for the building industry in Western Australia
While the challenges are daunting, they are not insurmountable. The need of the hour is a multi-pronged approach:
- Government Intervention: There’s an urgent need for both state and federal governments to reassess and recalibrate their policies. Streamlining regulations, ensuring material availability, and facilitating skilled labor migration could be pivotal.
- Industry Collaboration: The construction industry must come together to share best practices, resources, and insights. Collaborative efforts can help navigate the current crisis and lay the groundwork for a more resilient future.
In conclusion, Western Australia’s construction crisis is a wake-up call for all stakeholders. With concerted efforts, strategic interventions, and a focus on long-term sustainability, the state can rebuild its construction sector, stronger and more resilient than before.
How Builders Business Blackbelt can help?
We’ve found the most important factor that contributes to the success of a building business is the mindset, and belief perspective of the owner of the business. Yes, all of the above are real circumstances and yes, they can affect the building industry, and therefore your building business.
One of the powerful lessons I’ve ever been taught is learning what you can control and what you can’t, then having the wisdom (Which isn’t easy) to put all of your effort (Including your mental and emotional effort ot energy) into the things you can control. It’s a simple thing because the list of what you can control is so small, but pay attention, I didn’t say it was easy, just simple!
The list of what we can actually control is the following…
- Your thoughts
- Your actions
- Your emotions.
Pretty short right? And what makes it hard is trying to do this by yourself, on your own. The way we’re wired is we need proof, social proof. We need to see others doing things we find hard so we can see the the juice is worth the squeeze.
That’s why Builders Business Blackbelt is a group-based coaching environment just for builders. When Covid first hit, we would have a zoom meeting with the whole group, every day, 7 days a week. So we could have that community support and share ideas about how to deal with this massive uncertainty.
A few years on everyone from the builders business coaching group in Perth not only made it through the Covid years, many had the best years they’ve ever had in business because they didn’t allow the “Circumstances” to define them. As a group, they identified the opportunities brilliantly disguised in what everyone else was labeling problems and reset their priorities and their practices.
All of the above are just circumstances, we can let them push us around, we can waste our energy complaining, or we can look for the opportunities. And that is far easier in a community of like-minded business owners. We have a ready-made community for you to join,. It’s called The ToolShed. It’s Free to join and it’s got a ton of resources you can access that address every area of your business from marketing, to how to improve the quality of your clients, how to increase the productivity of your team as well as how to better manage the financial area so your business delivers “real” profits into your back pocket, not just a fictional figure on a P&L.