Adrian Hondros – Porter Davis:
One of the big challenges we have is in the supply chain – economic conditions are favourable, and economic growth drives infrastructure spending. We’re seeing infrastructure commitments by state and national governments. But overall, there is a finite supply of materials and labour. Pine and timber availability is an example. If we dive into the issue – some years ago tax-effective plantations did attract money to grow timber. That fell out of favour, and now, a few years down the track it has affected timber supply.
Also the US economy is doing well, housing is up there, so some suppliers from our region are heading to the US markets. So supply is an issue to think about.
Availability of labour is already an issue. And in the next two to three years we expect to see a large infrastructure boom, which will pull in a lot of the labour. Across the industry there are already labour challenges. All major builders in Victoria and in the north-west greenfield areas are facing labour challenges.