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Building trades indicate weak construction activity

The HIA Trades Report for the September quarter provides a profile of skilled labour availability consistent with very weak residential construction activity in 2012, said the Housing Industry Association. Source: Timberbiz

The HIA Trades Report, a survey of builders and sub-contractors, highlights a historically high availability of skilled labour due to depressed levels of housing demand.

“A greater availability of skilled labour provides an accurate reflection of current market conditions, which is of little solace to tens of thousands of tradespeople who are really feeling the pressure of persistently weak residential construction activity,” said HIA Chief Economist, Harley Dale.

“It is a cyclical situation and the experience around the GFC provides recent evidence that once a recovery is underway, skilled labour supply will tighten up very quickly,” said Harley Dale.

The HIA Trade Availability Index registered +0.15 in the September 2012 quarter, meaning that trades were in moderate oversupply (a reading between 0 and 1 signals oversupply).

Meanwhile, the HIA Trade Prices Index eased by 0.3% in the September 2012 quarter to be down by 0.4% when compared with the same quarter last year.

“The HIA Trades Report shows more than simply whether or not certain trades are currently available for work in the industry. It is also a business barometer,” said HIA Executive Director, Industry Workforce Development, Liz Greenwood.