Blame Covid. Supply chains. Russia. Just don’t mention the bleeding obvious. How many paragraphs do you think this will take today? (Feel free to scroll down, the Lying Press is practically unreadable):
The Australian building industry is now in full on “crisis” mode with warnings the country’s biggest builder Metricon is on the brink of collapse.
If Metricon fails it will join a long line of recent construction collapses including big name firms such as Probuild and Condev.
A “perfect storm” of factors – from supply chain issues to instability caused by Covid – is smashing the industry leading major building projects worth billions of dollars to come to a grinding halt and to blow outs on some home construction projects by as much as $100,000.
On Wednesday, it was reported that Metricon was in emergency talks with clients after falling into financial strife just days after the sudden death of co-founder Mario Biasin.
Metricon employs approximately 2500 staff, primarily in eastern Australia, where it has a pipeline of roughly 4000 homes under construction.
The company’s bosses are expected to meet with major clients including the Victorian Government on Thursday. Metricon is so large that the Daniel Andrews-led government sees it as too big to fail due to the thousands of direct and indirect jobs that rely on the firm.
Company memos seen by the Herald Sun have detailed concerns about cash flow. “It has come to crunch time,” one document is said to have stated.
Acting CEO Peter Langfelder denied the company had solvency issues and said the business continued to be viable.
“There is simply no basis to these rumours. Metricon is a strong viable business without any solvency problem,” he said.
But the construction industry is in such poor shape it would be no surprise if another big name faltered.
Talking to news.com.au last week, general manager of commercial and property services at Equifax Scott Mason said there was now a hidden crisis in the industry.
“Rising costs, disrupted supply chains and periodic lockdowns have created a profitless boom, with many construction companies committed to projects that are no longer financially viable thanks to major price increases for building materials,” he said.
“While big name collapses like Probuild and Condev have recently been in the news, what doesn’t often make headlines are the impacts of these events on the small businesses that make up the bulk of construction companies in Australia.”
A building insider has told news.com.au that in the past 12 months, the ongoing bankruptcies of Australian builders has already added to the construction costs of single storey houses rise by $40,000 to $50,000, and for a double storey, had risen by $60,000 and $100,000.
“Builders are not here to gouge clients, the fact is they if don’t get more money they might not be here to finish a house,” he said.
Several major construction firms have gone to the wall in the last year.
In February, Probuild collapsed after its South African parent firm WBHO pulled all its financial support.
WBHO said it had bailed out the Australian arm of the business with up to $183 million over the past four years which had “severely depleted” its resources.
It blamed pandemic restrictions and lockdowns for costly project delays.
“The Australian government’s hard-line approach of managing Covid-19 through a combination of border restrictions, snap lockdowns and mandatory work-from-home regulations for many sectors, has had a considerable impact on property markets as well as other industries such as the leisure industry,” WBHO said in a statement.
20 paragraphs to admit why the Australian building industry is by its very nature completely unsustainable. There are of course multiple factors upon which the building industry depends (and I am sure there is more to that “sudden death” than they’re letting on) but there is one factor which stands alone as number one.
By the length of the straight.
The level of development in Australia’s biggest cities is insane. Melbourne’s suburbs stretch into parts of Victoria which should by all rights be farmland and bush. Sure, the skyline is impressive, but at what cost?
Melbourne’s CBD has long been full of foreign faces, and pre-lockdown they were coming in at replacement levels. The developers don’t care, all they want is to keep building and keep making money. They don’t care where the buyers come from. They even leverage their relationships with politicians to ensure the mass immigration floodgates remain open.
The scum profit off the replacement of the Australian people.
The politicians need the ponzi to continue. They practically gave away our industry to Asia, so the building industry, maintained by replacement immigration, is required to maintain the illusion that Australia has a strong economy.
The scum gain their political power through the replacement of the Australian people.
It is quite fitting then, that in an election campaign in which politicians from all major parties have insisted that the “pandemic” is behind us, this revelation, just days before we are due to vote, that the building industry could be on the brink of collapse shatters the illusion that we are a first world country.
Without mass immigration to maintain the building industry, Australia is an economic basket case. The irony is that without mass immigration, the Australian people have the most slender of chances.