Supply Chain

The disruption in the supply chain is a significant trend that is expected to shape the construction industry in 2023. Over the past few years, the industry has faced a range of challenges due to conflicts, natural disasters, and shutdowns in manufacturing plants. The conflict in Ukraine, for example, has had a significant impact on the availability of long steel products, cement, and concrete products throughout Europe. Meanwhile, the shutdown in China has affected the manufacturing of key materials, including construction steel and fixtures in Asia. More recently, Indonesia’s announcement of a halt to the export of bauxite alumina could potentially increase the price of aluminum throughout Asia-Pacific.

As the industry faces these challenges, builders and trades will need to ensure greater visibility and control over the supply chain. The COVID-19 pandemic has highlighted the importance of understanding where materials come from and how they are transported. Building resilience into supply chains will become a priority, with local procurement and circular economy approaches playing an increasingly important role. Reusing demolition materials and retaining as much of the pre-existing building fabric as possible will help ensure a sustainable and resilient supply chain.

In addition, new technologies such as blockchain and data analytics are expected to play a greater role in ensuring transparency and control in the supply chain. These technologies will allow builders to track the movement of materials and ensure that they are sourced sustainably and ethically. By leveraging these technologies, builders can reduce the risk of supply chain disruptions and build a more sustainable and resilient industry.

In conclusion, the disruption in the supply chain is a major trend that will continue to shape the construction industry in 2023. Builders and trades will need to prioritize visibility and control over their supply chains, while also embracing new technologies and circular economy approaches to build a more sustainable and resilient industry. By doing so, the industry can better prepare for and mitigate future disruptions, ensuring that it continues to meet the needs of communities across Australia.