Our industry contributes over 46 per cent of the state's tax revenue, with the housing sector alone generating $3 of economic activity for every $1 invested. Every $1 million of residential building construction industry output supports nine jobs across the economy.

As Victoria emerges from COVID-19, we rely on building and construction for our economic recovery. However, we know that many of our regional members are continuing to report significant supply issues with building materials and trades.

While the international supply chains constraints were unforeseen, they continue to critically impact our industry, affecting the broader Australian economy – including housing affordability. In addition to these supply constraints, there has been increased demand.

During the last three months of 2021, the number of loans to owner-occupiers for home renovations was 77.8 per cent higher than a year earlier, with the pace of growth even stronger for investors (+87.2 per cent).

Victoria is not alone in experiencing supply shortages. Current conditions have seen a reduced capacity in supply chains for building products across Australia and overseas.
Specifically, at MBV, we know that builders are waiting up to nine months for trusses and up to 16 weeks for LVLs - just two examples of the delays, with the shortages likely to continue into 2023.

We urge our members to work closely with clients to discuss alternative timeframes, and we also strongly advise customers to plan for price increases. MBV is asking Victorians to be kind and patient with builders and tradespeople, especially as everyone is trying their best in some exceptionally unique and challenging circumstances.

Since May 2021, MBV has consistently advocated about supply chain issues and their impact on the building and construction industry.

We are currently awaiting a government report on supply shortages, which we hope will provide some long-term solutions to this current issue.