“While the building and construction pipeline of work is growing, so are the risks,” Mr Barwise said.
“Materials costs are literally going through the roof. Skilled trades are becoming hard to find and labour costs are rising. Interest rate increases will soften demand while also raising the cost of doing business.
“Builders are facing problems in juggling these factors and numbers of insolvencies are growing.”
The extended boom would result in the value of home-building rising 3.9 per cent this financial year to $109.4 billion, to $111.6 billion next year and $112.8 billion in 2024, ACIF said.
This will be offset partly by a weaker non-residential sector, which faces three years of declines as the total value of commercial work falls 1.4 per cent this year to $46.7 billion, then to $44.9 billion and $44.2 billion in 2024, mainly as a result of lower levels of work in office, retail and wholesale trade construction.
“The overall picture is for a modest decline sustained over the next three years,” the report said.
Engineering construction was likely to pick up steadily, as expanded infrastructure development programs pursued by Commonwealth and state governments flowed through into construction activity on the ground, ACIF said.
“This will carry through to at least 2023-24, with strong growth of 9 per cent in 2022-23,” the report said.
Strong demand for mining resources would trigger more than a cumulative 15 per cent increase in heavy industry including mining work over the next three years, it said.
