How your first home is supporting Victoria’s economy

2020 has been a turbulent year for the economy, with Victoria acutely feeling the effects of disrupted business and trade.  One of the first and most comprehensive stimulus packages offered to help tackle the headwinds was the Australian Government’s HomeBuilder Grant. The scheme, available until December 31, 2020, offers grants of up to $25,000 to eligible owner-occupiers in Australia – enabling many Victorians to access new home builds in 2020. In addition, the Victorian Government has followed suit, offering their own incentives for prospective homebuilders, particularly first home buyers.

The question is: why construction?

‘Making building and construction the keystone of COVID recovery is the right call by the Government,’ says Denita Wawn, CEO of Master Builders Australia. ‘The Budget will support the industry as the accelerator of economic recovery. It is going to support the country to build its way out of recession,’ continues Denita.

‘The construction industry is arguably one of the most important industries in the fight to rebuild Australia’s economy,’ says Managing Director of ABN Group Victoria, Aidan Hooper. ABN Group is Australia’s second-largest detached homebuilder in Australia according to the 2019–2020 Housing Rankings.

‘As an example, last financial year ABN Group alone begun construction on 2,900 dream homes for Australian families. We employed over 1,600 people and supported over 3,000 independent construction businesses.’

Extrapolate those figures over Australia’s major residential builders, and the impact on the economy is mind-blowing. In fact, the total value of building work in the year ending June 2020 was $121.2 billion, of which $72.2 billion was residential, according to the most recent Australian Bureau of Statistics data.

‘It’s really exciting and motivating to be a part of such a critical industry and assisting first homebuyers into their dream home with Homebuyer’s Centre – it’s highly rewarding’, said Mr. Hooper.

That’s because the impact of the construction industry goes far beyond stats and figures. It also has a very direct and personal impact on the lives and livelihoods of everyday people.

Here’s three ways the residential building industry helps support national and local economies:

1. Employment of everyday Australians

More than 1.18 million Australians are directly employed by the construction industry, according to Master Builder Australia stats. That’s approximately one in every 10 jobs that can be sourced straight back to construction! What’s more, the industry supports 992,000 full time positions – more than any other sector.

Essentially, when the building industry grows, so does the opportunity for meaningful work for everyday Australians.

‘With more and more Australian families approaching us to build their dream home in 2020 and into 2021, we’re proud to have maintained the employment of over 500 employees during the COVID pandemic,’ says Aidan.

‘This not only helps lower the unemployment rate in Australia, it’s also allowed the ABN Group to push forward with innovative ideas, culminating from the recent influx of new employees.’

2. Supporting local and small businesses

Beyond direct employment, the residential building industry plays a significant role in indirect work and employment too. How? Through suppliers.

‘Every time we build a new home, we rely on local small to medium businesses to provide the trades and materials we need to build a quality home. This includes bricklayers, carpenters and joiners, to plasterers, painters and plumbers,’ explains Aidan.

‘For ABN Group, this equated to supporting 400 businesses within Victoria throughout the last financial year.’

3. Training and upskilling of ABN staff

The construction industry plays a key role in the ability to upskill, train and employ the next generation of young Australians.

For Aidan, it’s not just about how many employee’s a builder takes on that defines its impact on the economy. It’s also about the level of training and opportunity they provide, to ensure their employees are prepared for their career ahead.

‘At ABN, we’ve found our employees learn the most and offer us (and our customers) the greatest value when they are offered broadening training.’

Currently, ABN Group have a close partnership with the Kangan Institute, which is a flexible and innovative place of learning. With over 30,000 enrolments yearly, the institute aids in the building of skills and knowledge of individuals across Victoria.

‘We understand the importance of future proofing our employees for the long term which is why we encourage staff to upskill by offering paid tertiary education. Through these courses, ABN Group facilitates employee growth and scope for career progression. In 2020, we had 44 employees graduate, and have seen an increase in uptake for the year ahead’.

‘We know how important it is to get good people contributing to the construction industry for the long haul,’ says Hooper.

Ready to start your first home journey?

Let’s chat – reach out to a New Homes Consultant today.