The Australian Constructors Association (ACA) has welcomed Infrastructure Australia’s latest Market Capacity Report, warning that Australia’s construction workforce shortfall is growing and that productivity reform is now critical.

While the report forecasts a potential 300,000-worker shortage by 2027 (from a current estimated shortage of 141,000), ACA says that the figures include a substantial number of resources required for the housing sector and this disguises the fact that significant capacity exists in many areas to undertake infrastructure projects right now.

“300,000-is a big, predicted shortfall but there’s capacity in the market right now to deliver infrastructure projects such as hospitals, roads and new energy infrastructure,” said ACA CEO Jon Davies.

“Many large construction businesses are currently reducing their workforce due to delays in bringing projects to market, particularly in the energy sector, so clients who act now can access experienced teams ready to deliver at a price that will not be achievable in just one- or two-years’ time.”

As demand surges in the coming years with the energy transition, need for AUKUS facilities and Olympic infrastructure on top of the traditional infrastructure development required for a growing population, the labour shortage will intensify and the only realistic way to manage it is through improving productivity.

“The looming workforce crunch is a wake-up call,” said Mr Davies.

“Improving productivity is the answer and it will require governments industry and unions to work differently.”

The report highlights Modern Methods of Construction (MMC) as part of the solution. ACA continues to advocate for the National Construction Strategy, Industry Blueprint and Culture Standard to build a stronger, more diverse and capable industry.

“We have a once-in-a-generation opportunity to align governments, industry and unions to deliver a more productive, sustainable and inclusive construction sector,” said Mr Davies.