Since July of last year, we have witnessed a period of rapid growth in domestic construction activity in Australia. This rapid growth has caused significant supply and demand issues within the Australian building & construction economy. For many builders, this period of high activity has become a ‘profitless boom’ that is causing a great deal of physical and emotional stress within the industry. We explore the questions; “Will these pressures lead to an increase in business failures?” “If so, when is this likely to start?”