Master Builders CEO says structural problems at core of shortages

Wilhelm Harnisch, CEO of Master Builders Australia (MBA), says that a decline in apprenticeships commencements and completions has been worsening for over a decade and unless structural issues are addressed, things are unlikely to change.

Speaking on Sydney's 2UE breakfast radio program, Harnisch outlined reasons for the current shortage of tradespeople. He said that the MBA is working with government to better match the aspirations of young people in order to encourage participation in the construction industry.

The current dropout rate is at about 50%, which Harnisch attributes to a number of things: "There's the industrial relations situation where a young person can make more money as a labourer than as an apprentice. Master Builders in Victoria (MBAV) has just released a study showing that an unskilled labourer can earn around $120,000 without earning a trade," he said.

He quickly encouraged listeners to consider the long-term view, "... don't get seduced by more money in the short term because as a tradesperson you will end up earning more money in the long term", he went on to say.

He identified the key problem sectors as carpentry and bricklaying and suggested that this will quickly translate to finishing trades including plastering, painting and tiling. He said recent estimates put the cost of laying bricks as rising from $1.00 to $1.60 per brick in the latest building boom — an increase of 80% — with a further hike to $2.00 per brick on the cards.

Harnisch suggested that the industry needs to work harder at communicating the value and attractiveness of building trades, again citing the MBV study: "People aren't aware that those who finish apprenticeships go on to be very successful businesspeople, as the MBAV study showed, earning more money than engineers and in some cases lawyers and doctors," he said.