What’s Happening in the NSW Construction Industry?

If you're on the tools or managing projects, you've probably noticed a few major changes. Here's what's causing the most pressure right now:

1. Builder Insolvencies Are Increasing

More building companies are going bust than ever before. From small contractors to large residential builders, many are being forced into liquidation. Cash flow issues, fixed-price contracts, and increased cost of goods are pushing many out of the game.

2. Material Costs Keep Rising

The cost of timber, concrete, steel, and general building supplies has surged. Combine that with transport delays and fuel prices, and you’ve got serious pricing pressure on every job. Builders are finding it harder to price jobs competitively while still making a profit.

3. There’s a Major Shortage of Skilled Workers

From carpenters and plumbers to site managers and estimators — there just aren’t enough skilled workers to go around. Tradies are in high demand, and wages have increased as a result. Builders who can’t compete on pay or conditions are left understaffed and behind schedule.

How Can Builders in NSW Respond?

It’s not all doom and gloom. Smart builders are adapting quickly. Here are five key strategies to help you stay competitive and compliant:

1. Diversify Your Work

Don’t put all your eggs in one basket. Look at different types of projects — renovations, commercial fit-outs, insurance work, or government contracts. Diversifying helps you stay busy even when the residential market slows down.

2. Level Up with CPD Training

Completing your CPD points each year isn’t just about staying licensed — it’s about learning smarter ways to run your business. Online CPD training through CPD Centre is a fast, easy way to upskill in areas like contracts, dispute resolution, WHS, and cost estimating.

3. Improve Your Financial Planning

Cash flow is king. Make sure you're quoting accurately, managing project budgets in real time, and staying on top of your accounts. Consider using tools to track costs and automate invoicing to avoid payment delays.

4. Build a Reliable Network

Surround yourself with subcontractors and suppliers you trust. If you’re short on staff, a reliable network can help you keep jobs moving. Consider joint ventures or collaborations to share resources and win larger projects.

5. Stay Updated on NSW Builder Compliance

Make sure you know your obligations as a licensed builder in NSW. That includes completing 12 CPD points every year, following WHS laws, using fair contracts, and keeping your insurance and license current. Staying compliant is the foundation for avoiding fines and protecting your reputation.