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Home News

ACA forum: industry leaders discuss path to change

by Staff Writer
August 13, 2024
in News, Spotlight
Reading Time: 4 mins read
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ACA CEO Jon Davies

ACA CEO Jon Davies

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The inaugural Foundations and Frontiers (FF24) forum saw leaders from across the construction industry come together to discuss challenges facing the sector.

Major industry associations, representatives from state and federal governments, national union heads, and a diverse range of stakeholders – from private clients and contractors to designers, developers, financiers, and insurers, were those among the attendees at the forum hosted by the Australian Constructors Association.

Polling from the day highlighted the growing concerns facing the construction sector, which is one of the country’s largest industries. Attendees said the biggest challenges the industry faces are a poor culture (31.5 per cent), lack of productivity (31.5 per cent), and lack of financial sustainability (17.8 per cent).

When it comes to thoughts on what the government should be doing to support a “sustainable: future for the industry, “procuring based on best value not lowest cost” (37 per cent) and “ensuring fair allocation of project risk” (29.3 per cent) came out top.

Frank and open discussions in plenary sessions informed separate leader roundtables where potential ways of addressing the challenges were discussed and metrics to measure progress proposed.

Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, addressed the development of a new Federal Funding Agreement with the states, aimed at supporting opportunities for Australian industries and businesses, advancing skills development and workforce diversity, enhancing reporting requirements, productivity and culture of the construction industry.

In addition to these key focuses, Minister King highlighted the importance of increasing the number of women in the construction industry (currently only 12 per cent), especially given the current workforce shortages. She praised initiatives like the Construction Industry Culture Taskforce in addressing the underlying issues behind this lack of diversity.

Infrastructure NSW CEO Tom Gellibrand discussed the New South Wales Government’s plans to build on the 10 Commitments to the Construction Industry published in 2018, with the publication of government /construction industry partnership principles aimed at developing domestic manufacturing, improving the financial stability of the sector, and increasing productivity.

In a timely segment given recent allegations surrounding the CFMEU, National Secretaries from the Electrical Trades Union of Australia, Australian Workers’ Union, and Plumbing & Pipe Trades Employees Union discussed the important role that law abiding unions have to play in shaping the future of the industry. The conversation focused on improving productivity by providing workers with job certainty, upskilling them to keep up with technological changes, establishing a mentally healthy workforce, and fostering better communication and collaboration between unions and employers.

To close the event, 75 industry leaders signed a communique recognising the importance of the industry to Australia’s economy, the challenges that are being faced by the sector and agreement to increase collaboration to overcome them.

Jon Davies, CEO, Australian Constructors Association, said that the timing of the first industry wide forum was fortuitous.

“Foundations and Frontiers 24 was conceived over a year ago, but the events of the last few weeks provide a once in a generation opportunity to accelerate the pace of change and finally create a more sustainable construction industry for the benefit of workers, employers and all Australians,” Mr Davies said.

“The name of the forum recognises that we are not starting from scratch. The foundations for a more sustainable industry are already there but we need to push the frontiers for acceptable outcomes in areas like industry culture, diversity, productivity and profitability, and we need to do this quickly!

“This forum was not supposed to solve all industry’s problems in one go. It was designed to start a movement for change and in that respect, I think it was an overwhelming success.”

Image: Australian Constructors Association CEO Jon Davies on stage at FF24. Credit: Australian Constructors Association

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