The HIA Trades Report, a quarterly survey of builders and sub-contractors, indicates a relatively high availability of skilled labour continued into the first quarter of 2013, while developments in trade rates were benign.

“Skilled tradespeople continue to operate in weak conditions – residential construction experienced declining activity in 2012 and while there are signs of a recovery in 2013, it is from a very low starting point,” says HIA economist Diwa Hopkins.

“An adequate provision of skilled labour will be a crucial ingredient to a recovery in new home building that is of the magnitude required by Australia’s longer term housing needs,” Diwa says.

“A prolonged period of inadequate residential construction activity is not conducive to attracting new skilled labour into the industry, and this may undermine the longer term capacity of the industry to meet recovering demand. Improved support now for training will play an important role in mitigating this risk.”

The HIA Trade Availability Index eased slightly from +0.22 at the end of 2012 to +0.19 in the March quarter this year, meaning that trades were still in moderate oversupply (readings greater than 0.0 indicate oversupply). The current soft conditions in the residential construction industry are also reflected in the relatively mild improvement the HIA Trade Prices Index. The Index increased by 2.7% in the March 2013 quarter, off a very low base, to register an annual growth rate of 1.1%.

HIA industry workforce development executive director Liz Greenwood adds, “From a policy perspective, very little has changed since the last quarter. Policy decision-makers are still faced with the pressing need to address business certainty, for without that, building businesses will be reluctant to commit to taking on apprentices.

“One positive message from these figures is for those consumers considering a new home or renovating an one – make the most of the current window of opportunity while skilled trades people are in more favourable supply.”