The second annual Kennards Hire ‘Construction Confidence Check’ survey results show an interesting industry picture.
The survey found that 83% of construction firm leaders consider the industry ‘stable’ and able to sustain growth challenges. The C-suite agrees that the industry is ‘stable’ 87% of the time.
The 2023 Kennards Hire Construction Confidence Check* questioned 500 Australian construction firm executives with 20+ employees. The statistics show how boardrooms are doing and how small and large enterprises in the industry view them.
Stability of the construction industry
Tony Symons, General Manger Commercial at Kennards Hire says, “At Kennards Hire, we pride ourselves on our excellent customer service. The Construction Confidence Check allows us to stay attuned to the industry’s outlook, ensuring we remain well-informed and can continue to use our expertise to help businesses navigate mounting pressures.”
While this year’s Construction Confidence Check shows an increase in optimism over last year’s, there were notable differences in responses based on company size and region.
- In companies with 20-99 workers, optimism rose to 86% in 2023 from 74% in 2022.
- Larger companies (those with 100+ workers) saw a decrease in optimism (80% in 2023 compared to 92% in 2022).
- Confidence drops somewhat in NSW and VIC (83% in 2023 vs. 86% in 2022), but rises in the rest of Australia (84% in 2023 vs. 72% in 2022).
Construction industry leaders ranked addressing the rising cost of materials (50%), skilled labour shortages (42%), the rising cost of equipment (40%) and supply chain issues (37%), as the top macro issues to solve for in order to achieve stability and growth in the construction sector over the next five years.
ESG in Construction
The 2023 Kennards Hire Construction Confidence Check survey also explored industry perceptions on ESG, revealing that:
- Leaders in the construction industry are committed to improving environmental, social, and governance (ESG) outcomes, with 59% claiming their company has an ESG strategy in place or intending to implement one2.
- Among those who have or intend to implement an ESG strategy, 48% cite the use of eco-friendly and sustainable materials as a means of doing so.
- Costs (39%), supply chain risks (38%), a lack of knowledge and understanding of how an ESG strategy can benefit their business (37%), and a lack of knowledge and understanding on exactly what an ESG involves (36%) are the most frequently cited obstacles to the further development of an ESG strategy among those who do not already have one in place.