Business Insider Australia published a very sobering article about the building industry:
“It will be biblical”: The construction industry is bracing for failed businesses and half-finished homes after the boom.
Key points from the article:
- The boom in the construction industry will be followed by a bust, the industry warns.
- As the price of materials soar, delays blow out, and shortages sting, most in the sector aren’t making profits despite the oversupply of work.
- The Association of Professional Builders believes as many as 60% of operators are losing money currently, with many due to fail early next year.
This article paints a stark warning about the future of the Home Building Industry in Australia. If you are in credit management for the Building Industry, please read this article: https://www.businessinsider.com.au/construction-boom-bust-australia-homebuilder.