Labour shortages and Government red tape remain the industry's biggest hurdles

The top challenges facing the industry continue to revolve around resource availability and administrative barriers. Skilled labour shortages remain the most significant issue, recording a 3.5 out of 5 impact rating, followed by government red tape and delayed approvals (3.1). There is a noted increase in the impact of “too many contractors chasing too few projects” with respondents scoring this challenge 3.0 out of 5, up from 2.6 in Q3 2024, moving it from the sixth to the third biggest supply chain challenge experienced by contractors.

Rising construction costs (2.7) remain a concern, but less so than in previous years. By contrast, low workplace productivity and political instability are rated as having a relatively minor impact, indicating operational resilience despite external pressures.