Confidence in the industry may have been shaken up slightly by Victorian Labor’s commitment to rip up contracts for the multi-billion dollar East West Link construction project, Master Builders’ latest sentiment study found.

While builder faith in industry prospects and returns remains healthy, Master Builders’ Industry Expectations Index dropped 2.6 percentage points in a quarter.

“At a time when we have seen engineering construction works hit a five year low, the loss of the multi-billion dollar East West Link was a particularly heavy blow both to jobs and much needed infrastructure projects for our state,” said Master Builders Chief Executive Officer Radley de Silva.

“But with millions of dollars committed to infrastructure, school and hospital building projects, we hope to see plenty of work come on line for builders in the near term.”

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The drop in builders’ expectations for the industry has also led to them feeling less secure about their own business prospects. For the first time in a year, the Business Expectations Index dipped below the five year average levels and is also the lowest recorded since the September 2013 quarter.

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But despite expectations falling, current work is climbing. More Victorian builders now have at least six months’ worth of work on their books than at any other time since late 2009.

Some 38.6 per cent of builders advised they have work for six months or more, compared to 33.5 per cent three months earlier.

In total 64.3 per cent of builders have three months or more work planned, which is also up 12.9 percentage points from what was recorded just six months ago.

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Other results from Master Builders’ industry sentiment survey:

  • The Apprentice Intentions Index showed that employers are less enthusiastic about hiring more apprentices than they were earlier in the year, dropping from 61.4 points to 56.7 points.
  • Victorian builders are finding it easier to find suitable project managers, but site managers and foremen/supervisors are now the hardest to find.
  • There has been a sizable jump in the difficulty for builders finding concreters, tilers and painters.

Click here to download the full results of the survey