Construction Confidence Check 2023

Construction business leaders remain confident in the sector

Kennards Hire’s second annual ‘Construction Confidence Check’ survey results reveal an interesting outlook of the industry. 
According to the survey, the majority (83%) of construction business leaders surveyed view the industry as ‘stable’ and able to withstand pressures to continue growing. At the C-suite level, this number increases with almost 9 in 10 (87%) agreeing that the industry is ‘stable’. 

The 2023 Kennards Hire Construction Confidence Check* surveyed over 500 of Australia’s business leaders in the construction industry with 20+ employees. The findings demonstrate how boardrooms are faring in the current environment, highlighting perceptions of small and large businesses operating in the industry. 

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.” 

Compared to last year’s Construction Confidence Check, while overall confidence in Australia’s construction industry has improved, this year’s survey results indicate a sentiment shift based on business size and location.

• In smaller businesses (20-99 employees), confidence increased (86% in 2023 vs. 74% in 2022)
• In larger businesses (100+ employees), confidence declined (80% in 2023 vs. 92% in 2022)
• In NSW and VIC, confidence slightly declined (83% in 2023 vs. 86% in 2022), however the rest of Australia (QLD, SA, WA, TAS, NT & ACT) shows confidence increased (84% in 2023 vs. 72% in 2022). 

“Australia’s construction industry is resilient and adaptable, so it’s no surprise that most business leaders are hopeful about the future. Based on our survey results and conversations with industry leaders, we know the difficulties experienced by some construction businesses does not define the entire sector. However, we also know that many are still feeling the impact of external factors. In fact, our survey shows that 56% of business leaders say rising costs of materials is their top issue impacting confidence in the industry, followed by skilled labour shortages (51%) and supply chain issues (45%),” said Symons. 

ESG in Construction

To achieve stability and growth in the construction sector over the next five years, construction business leaders surveyed ranked solving the rising cost of materials (50%), skilled labour shortages (42%), the rising cost of equipment (40%) and supply chain issues (37%) in the top macro issues to solve for.

The 2023 Kennards Hire Construction Confidence Check survey also explored industry perceptions on ESG, revealing that:

• Construction business leaders are taking their ESG responsibilities seriously with 59% saying their company has an ESG strategy in place,
• Of those who have an ESG strategy in place or are looking to implement one2, 48% say the use of eco-friendly and sustainable materials is a step they are taking to improve ESG outcomes, closely followed by proper waste management and material recycling (43%),
• Of those who do not have an ESG strategy in place, common barriers to further progressing their ESG strategy include costs (39%), supply chain risks (38%), 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%).

“Now more than ever, the power of the circular economy is helping businesses cut costs. At Kennards Hire, we support construction business leaders find cost-savings whilst simultaneously improving ESG outcomes. By choosing to hire equipment instead of purchasing, businesses can reduce upfront costs, participate in the sharing economy, and have access to the latest technology without the burden of ownership,” said Symons.