In the latest Earlytrade Supply Chain Scorecard, the data is showing that the “perfect storm” of persistent labour shortages, supply chain pressures and interest rate rises caused a further slowdown in Australia’s construction industry during the March quarter of 2023.
Key call outs:
- Construction claims fell by 4% during the March quarter, suggesting further slowing in construction activity
- Despite this, early payment requests from subcontractors increased by 12%, defying seasonal cyclicality
- The proportion of claims being brought forward by subcontractors increased by 14%
- There are green shoots for the sector as supply constraints and inflationary pressures abate. The RLB Tender Price Index is moderating to 4% for 2023