2020 has been a turbulent year for the economy with Victoria acutely feeling the effects of disrupted business and trade. In a year renowned for its unprecedented challenges and, at times insightful realisations, one of the first and most comprehensive stimulus packages offered to help the Victorian economy was the Australian Government’s HomeBuilder Grant – enabling many Victorians to achieve their dream of home ownership in 2020. Since then, many State Governments have followed suit, offering their own incentives for prospective home owners.
The question is: why stimulate construction?
‘Making building and construction the keystone of COVID recovery is the right call by the Government,’ says Denita Wawn, CEO of Master Builders Australia. ‘The Budget will support the industry as the accelerator of economic recovery,’ continues Denita.
Managing Director of ABN Group Victoria, Aidan Hooper, echoes this sentiment. ‘The construction industry is arguably one of the most important sectors to help rebuild Australia’s economy.’ ABN Group is Australia’s second-largest detached home builder according to the 2019–2020 Housing Rankings.
‘Last financial year ABN Group alone started construction on more than 2,900 dream homes for Australian families. We employ over 1,600 people and support over 3,000 independent construction businesses.’
Extrapolate those figures across Australia’s major residential builders and the impact on the economy is substantial. The total value of building work in the year ending June 2020 was $121.2 billion, of which $72.2 billion was residential, according to the most recent Australian Bureau of Statistics data.
But the impact of the construction industry goes far beyond stats and figures. It also has a very direct and personal impact on the lives and livelihoods of everyday people.
‘The impact of the construction industry upon the economy and therefore on the livelihoods of many Victorians is very important to us. We’re proud to contribute to the success of such a critical industry,’ says Aidan.
Here are three ways the residential building industry helps support national and local economies:
1. Employment of everyday Australians
More than 1.18 million Australians are directly employed by the construction industry, according to Master Builder Australia stats. That’s approximately one in every 10 jobs that can be sourced straight back to construction. The industry also supports 992,000 full time positions – more than any other sector.
When the building industry thrives, so does the opportunity for meaningful work for everyday Australians. ‘In spite of the challenges that 2020 threw at us, we worked hard to keep our 500+ employees at ABN Victoria in jobs and, in some areas, we’ve actually increased headcount in line with our growth and expansion plans,’ says Aidan.
‘As well as keeping Australians employed, the recent influx of new employees has helped to inject new thinking into our business and ensure we push forward in creative and innovative ways.’
2. Supporting local and small businesses
Beyond direct employment, the residential building industry also plays a significant role in creating indirect work via sub-contracting businesses.
‘Every time we build a new home, we rely on local small to medium businesses to provide the trades and materials we need to build a quality home. This includes bricklayers, carpenters and joiners, to plasterers, painters and plumbers,’ explains Aidan.
‘For ABN Group, this equated to supporting over 400 sub-contractors within Victoria throughout the last financial year.’
These small businesses also have a follow on effect, directly stimulating the Australian resource industries that supply them.
3. Training and upskilling the Victorian workforce
The construction industry plays a key role in the ability to upskill, train and employ many Victorians. As detailed by Master Builders Australia, the industry encompasses a significant portion of the current workforce as well as being a major contributor to the future supply of labour through apprentice and trainee development.
‘At ABN Group, we’ve found that our employees learn the most and offer both us and our clients the greatest value when they are offered broad and varied training,’ says Aidan. ‘It’s important that we provide our employees with these opportunities so that they are well-prepared for their career ahead.’
Currently, ABN Group has a close partnership with the Kangan Institute – a flexible, innovative and friendly place of learning that assists in the building of skills and knowledge of individuals across Victoria.
‘We understand the importance of future proofing our employees for the long term which is why we encourage staff to upskill by offering paid tertiary education. Through these courses, ABN Group facilitates employee growth and scope for career progression. In 2020, we had 44 employees graduate across a wide range of certifications.
We know how important it is to have good people contributing to the construction industry for the long haul,’ says Hooper.
What makes us different?
With 42 years of experience building quality new homes, we are committed to raising the standard of building. Click here to learn more about Boutique Homes and our dedication to bringing the dream of home ownership to Victorians.