Impact of the Skill Shortage on the Construction Supply Chain Performance in Australia

Abstract

The purpose of this paper is to investigate how the skill shortage impacts the performance of the construction supply chain in Australia. The study has adopted a quantitative research method. The quantitative data were collected by conducting a survey of employees who work in construction companies in Australia. A regression analysis was used to analyze the data from 113 respondents. The findings of the study reveal that the construction sector in Australia has high labour costs, but workers are still thinking they are not getting paid enough and cannot invest more in themselves to improve their skills. There is a lack of academic and vocational training programs offered to them. Insufficient recruitment and incentive policies are also main barriers to attract talents to the construction industry in Australia. The situation became more serious during the COVID-19 period due to the lockdowns, lack of skilled migrants, and Government working visa policies. The study implies that firms should have a deeper understanding of the reasons for the skill shortage. Firms also need to devise strategies for hiring the right talent. Further, it was found that quality talent can come from the local or foreign markets. More effective selection criteria should be designed so that the best-fit approach can be implemented. Doi: 10.28991/CEJ-2023-09-02-08 Full Text: PDF

Digital Evolution in AEC industry: Bridging BIM, Building Codes, and Future Technologies

“…For example, the United States construction labor market is predicted to deteriorate in 2022 and 2023, with an anticipated need for an additional 650,000 workers in 2022 and 590,000 in 2023 beyond usual hiring rates, according to the Associated Builders and Contractors [3]. Adding to these challenges, there's been an 8% drop in construction workers aged 25-54 over the last decade, while older worker exits have surged [4]. Further compounding the issue, over 20% of construction workers are now 55 or older, alarming for a sector where the average retirement age is 61 [5].…”