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The Queensland Productivity Commission- Construction productivity- Interim Report

by The Queensland Productivity Commission- Construction productivity- Interim Report

Queensland’s Construction Sector: At a Critical CrossroadsQueensland’s construction industry is confronting a complex array of structural challenges, marked by rising demand, acute labour shortages, supply chain disruptions, and stagnating productivity. Despite pockets of growth, the sector’s labour productivity has seen minimal improvement—growing just 5% since 1994–95, compared to 65% growth in the broader market economy. Alarmingly, productivity has declined by approximately 9% since 2018, meaning the industry now requires significantly more labour to maintain output levels.This persistent underperformance stems largely from two interrelated issues: increasing regulatory burdens—particularly those affecting land use, building activity, and labour markets—and inefficient procurement practices, notably linked to an expanding government capital works agenda and interventionist policies.If Queensland is to deliver on its infrastructure pipeline, meet population growth demands, and su