With no electricity and limited space, building material suppliers are increasingly finding it difficult to find the right suppliers for their products.
In fact, a study published last month by the Australian National University found there were about 2.5 million suppliers in Australia.
The report said the industry needed to do more to ensure it has “a competitive advantage”.
The National Building Industry Association said building material shortages had been the biggest cause of business difficulties for building material companies for years.
But its chief executive, Andrew Hinchliffe, said it was important the supply chain was strengthened.
“The biggest challenge in the supply of building materials is the lack of reliable supply channels,” he said.
“We’ve had a very good decade for supply of materials but unfortunately we’ve been left behind.”
The study by the University of New South Wales’s Centre for Building Materials found that more than 2.7 million building material products were currently being produced in Australia, but there were only 2.2 million suppliers.
The study said building materials had traditionally been bought by the individual product supplier.
“They might go through their supply chain, which is the whole process of buying materials, buying raw materials, and then getting it out into the marketplace,” Mr Hinchmiffe said.
He said suppliers could be working hard to ensure that a product was always available.
“If you can make that happen, then there’s no need for suppliers to take a break,” he told ABC Radio Melbourne.
“As a result of the current crisis in supply chains, many suppliers are finding it more difficult to sell their products than they should be,” the report said. “
So it’s a lot easier for a supplier to be able to say ‘this is the product I need’.” There were also concerns that supply chains were not always working as planned.
“As a result of the current crisis in supply chains, many suppliers are finding it more difficult to sell their products than they should be,” the report said.
Building materials industry body The Australian Building Industry (ABC) said the number of building material manufacturers had been declining for years, with the industry experiencing an “urgent need for supply”.
“The sector has historically been driven by large companies, so there’s always been a big focus on the small-scale building materials companies,” the ABC said in a statement.
Mr Hinceliffe said building company supply chains needed to be strengthened. “
This has caused them to struggle in the marketplace and that has caused a significant supply short-coming for the industry.”
Mr Hinceliffe said building company supply chains needed to be strengthened.
But he said the building materials industry had been hit hard by the recession, and that there was an urgent need to get a better supply chain.
“It’s not just building materials but other types of building and residential products,” he added.
“There’s a whole range of other things that need to be considered.”
Building materials shortages, and the need for more government support, could be one of the main issues that will ultimately determine the outcome of the election.
“I think we’re going to be left behind in a big way, and in terms of our building supply chain we’re not going to have any choice but to look to the federal government for some support,” Mr Karpeles said.
The ABC’s Julia Roberts reports on the election, including the Greens’ candidate and the Coalition’s candidate, at 6:15pm on Tuesday.
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