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“We Have a Productivity Crisis” Denita Delivers A Clear Message

Summary: In a recent Sky News interview with Tim Gilbert, Master Builders Australia CEO Denita Wawn delivered a clear message to the construction sector. With building costs rising more than 40 percent, delays blowing out by up to 80 percent, and critical trade shortages threatening future delivery, the pressure on the industry has never been […]

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Sat 21 Jun 25 6:00:00 AM

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Summary:

In a recent Sky News interview with Tim Gilbert, Master Builders Australia CEO Denita Wawn delivered a clear message to the construction sector. With building costs rising more than 40 percent, delays blowing out by up to 80 percent, and critical trade shortages threatening future delivery, the pressure on the industry has never been higher. Wawn called for real action on productivity, workforce, and planning reform — not just talk. Here is what builders need to know.



When Denita Wawn speaks, the industry listens.

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The CEO of Master Builders Australia appeared on Sky News on 14 June to talk candidly about the challenges facing the construction sector and what it will take to fix them.

“We have a productivity crisis in our industry,” Wawn said. “Nearly a 20 percent decline over the last decade. We have huge demand for our built environment, but it is really hard to build at the moment.”

From rising costs and workforce shortages to planning reform and government support, Wawn covered the real-world issues that are impacting builders every day — and offered a wake-up call to decision-makers to turn plans into action.



Builders are stuck between rising costs and slow pipelines

Wawn revealed some sharp numbers that many builders will relate to:

  • Build costs have increased by over 40 percent
  • Delays have increased by nearly 80 percent
  • Builders are reporting softer sales pipelines for next year

Even with recent interest rate cuts, customers are still hesitating to sign contracts.

“People are looking at those increased costs of construction and saying, it is all too hard,” Wawn explained. “But every time we get a decrease in interest rates and inflation, we see more interest and more people willing to spend — which is critical to resolving the housing crisis. We cannot rely on government spending alone.”



Plans are in place — but where is the action?

The federal government has announced several initiatives to support construction, including:

  • A national construction industry forum
  • Productivity Commission reviews
  • A planning reform blueprint tied to the Housing Accord

But Wawn said the time for reports and summits is over.

“There is a lot of plans in place, but now is the time for action,” she said. “We are certainly hearing that from the government in our early discussions with them — and that is what we need to see.”

For builders, that action needs to result in faster approval times, more clarity on compliance, and support for business productivity at a local level.



The trade shortage is real — and deepening

One of the most urgent challenges Wawn raised is the shortage of skilled trades across Australia.

“We have a massive skill shortage in this country by hundreds of thousands,” she said. “We are doing everything we can.”

Master Builders has launched the Construct Your Career guide, along with women-in-trades programs and HR training to help businesses improve recruitment and retention.

But Wawn said the bigger shift must come from how Australia views vocational education.

“More needs to be done around our schools and our parents to understand the benefits of vocational education and training. There are so many opportunities out there.”

This is a challenge that touches every level of the industry — from large contractors to regional builders trying to find a reliable apprentice.



What this means for builders

For many builders, the story Wawn tells is all too familiar.

Clients are hesitating. Materials are still expensive. Labour is difficult to find and keep. And navigating planning systems remains a slow and costly process.

What this interview does is raise the profile of those concerns at a national level — and puts pressure on policymakers to respond with tangible reforms.

If the industry is to deliver on Australia’s housing targets, builders need support to operate efficiently, confidently, and profitably.

As Wawn put it, “We have to resolve these problems once and for all.”


Final word

This is a pivotal moment for the industry. Builders cannot shoulder the entire housing crisis on their own — and the leaders at Master Builders Australia are making that message clear.

Now, it is time for policy to catch up with reality. Action must follow consultation. Reform must follow rhetoric.

And for builders across the country, it means staying informed, speaking up, and leaning into the systems and support that are starting to shift.



Do you have a story about delays, workforce shortages or building through the pressure?

Reach out to The Good Builder — we are spotlighting the builders leading through change.

thegoodbuilder.com.au | LinkedIn

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