The Housing Industry Association (HIA) is urging the federal government to take urgent action to support Australia’s building product manufacturers and suppliers, an industry valued at over $130 billion that plays a critical role in delivering new housing across the nation.
HIA Managing Director Jocelyn Martin emphasised the industry’s importance and the challenges it faces in a statement.
“The Housing Industry Association (HIA) is calling on the federal government to act urgently to support Australia’s building product manufacturers and suppliers, an industry worth more than $130 billion and critical to the delivery of new housing across the country,” she said.
The call for action comes as HIA submitted detailed recommendations to the Treasurer’s Economic Reform Roundtable on behalf of its National Manufacturers’ Council.
The submission outlines necessary reforms aimed at reducing regulatory burdens, stabilising energy policy, addressing workforce shortages, and fostering innovation within the manufacturing sector.
“Australian-made building products are the foundation of every new home,” Martin stated, highlighting the sector’s fundamental role.
She noted, however, that the industry is increasingly shackled by an array of regulations and rising operational costs that hinder growth:
“But the sector is being held back by red, white and green tape, rising energy costs, and worsening skill shortages,” said Martin.
Martin pointed out the complexities manufacturers face with overlapping regulations spanning planning, environmental standards, and building code amendments.
“Manufacturers are increasingly burdened by overlapping regulations, from planning and environmental rules to complex building code changes,” she explained.
She called on governments to reduce regulatory interference and create a business-friendly environment that allows manufacturers to focus on growth and innovation.
“Our members want to invest and innovate, but governments must get out of their way and let business get on with business,” Martin said.
To that end, HIA is advocating for a national strategy focused on cutting red tape, reshaping energy policy to ensure supply affordability and reliability, and expanding access to skilled workers.
“We’re calling for a national strategy to reduce red tape, reframe energy policy to support affordable and reliable supply, and boost access to skilled workers.”
Ms Martin underscored the severity of the skills shortage impacting not only construction sites but also manufacturing plants where building materials are produced.
According to recent HIA analysis, the industry faces a shortage of over 83,000 tradespeople to meet the government’s target of 1.2 million new homes by 2029, with similar pressures on the manufacturing workforce.
“We need targeted training programs, streamlined skilled migration pathways, and stronger incentives for employers to take on new workers and trainees,” she said.
Among the submission’s key recommendations are the creation of a Minister for Red Tape Reduction to spearhead regulatory reforms and targeted support measures for manufacturers and suppliers facing workforce challenges.
Additionally, HIA calls for the establishment of a national Building Innovation Hub aimed at accelerating the adoption of new building products, materials, and systems.
“With global pressures rising and housing targets looming, now is the time to back Australian manufacturing,” Martin concluded.
“This sector is ready to deliver, but it needs the right policy environment to do so.”
HIA’s comprehensive briefing to the Economic Reform Roundtable seeks to ensure policies align with the industry’s potential to contribute significantly to Australia’s housing supply, economic growth, and innovation landscape.
The future of building product manufacturing in Australia depends heavily on swift and decisive government action to create favourable conditions for investment, skill development, and technological advancement.
