The Australian construction industry is facing an unprecedented rise in business failures. This video includes ACM-produced voiceover powered by AI. Video by Gwen Liu
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00:00We have a housing crisis that's been a generation in the making.
00:04For decades, our country has not been building enough homes.
00:07The Australian construction industry is facing an unprecedented rise in business failures.
00:12There's been a lot of construction companies that has folded.
00:16From July to September 2024, an average of eight construction firms collapsed every day in Australia.
00:23More than 7,000 construction companies declared insolvency in the past three years.
00:28Fixed price contracts, labour shortage, rising material costs
00:32and project delays all contribute to financial strain on the builders.
00:37And so the company then becomes financially not viable.
00:40They can't afford to lose that much money.
00:43Then the best thing that they can do is file for bankruptcy.
00:46With the end of the pandemic era stimulus,
00:49the return of the Australian Taxation Office's debt collection has further pressured businesses.
00:55In the midst of this crisis,
00:56thousands of families watched as the construction of their dream homes were shut down.
01:00For us, it's disappointing, but at the end of the day,
01:03there's not much we could do to control what happened.
01:06The buyers are a little bit protected because in their contracts,
01:11it would have said that if it's the builder or if it's the company that can't deliver,
01:16then the buyers might be able to get their deposit back or something along those lines.
01:25you