In January 2020, the impacts of COVID-19 hit Australian shores, sending industries and sectors into disarray.

Two years on, global supply-chain issues are still being felt across the country, posing a real threat to our economic recovery. Australia’s dependence on offshore manufacturing has forced businesses across all sectors to quickly adapt and rethink the way we manufacture goods as a result of the pandemic.

In attempting to stem the spread of the virus, state-wide lockdowns first introduced in 2020 dramatically altered consumer demand for products and services, sending shockwaves back through the supply chain networks of businesses across Australia. Throughout the pandemic, individuals prioritized homeownership and home remodeling after spending prolonged periods of time at home. This unexpected jump in demand for construction services put a further strain on the industry and its supply chain.  On the other end, offshore suppliers were – and still are – unable to meet demand after enduring roadblocks of their own, with COVID-19 outbreaks sending manufacturers into temporary closure or slowdowns.

Some of the hardest hit have been structural materials including timber and steel. In the last 30 years, the manufacturing of these building materials has been steadily transitioned offshore, and the conditions of the pandemic, in particular constraints on international shipping, have significantly slowed the importation of essential building products. This has put the building industry under considerable strain, with the cost of materials and logistics skyrocketing and lead-times lengthening.

Amongst all the chaos, Australia’s construction industry has managed to remain relatively strong and maintain good levels of productivity. However, the industry is still experiencing significant project delays, which can, in part, be attributed to the offshore supply of materials, transportation disturbances and, more recently, both blue and white collar staff shortages. nationwide.

Impacts of the Omicron variant on businesses is far worse and will be longer lasting than those from the first variant. Since the start of the pandemic, 3.2 million Australians have been infected with COVID-19.

That is 3.2 million people, and their close contacts, who have spent up to 14 days in isolation, unable to work and keep our economy moving forward.

The initial effects of COVID-19 put a glaring spotlight on Australia’s heavy reliance on overseas materials and our systematic reduction and decline in “Proudly Australian Made”. Unless we look to reinforce and protect our supply chains, Australian industries may not survive another major disruption if it were to occur. We need to be future-proofing our country by increasing our self-sufficiency and investing further in Australian manufacturing. By supporting local manufacturing, industries will also benefit from improved quality assurance, working conditions and safety standards. But above all, the reliability factor will produce the most benefits for Australia’s construction industry and economy security.

As Australian manufacturers search for production solutions closer to home, there is an opportunity for our country to resurrect the industry through further investment in local manufacturing. So far, there has already been some movement at government level attempting to boost “Australian made” products. In 2020, the Federal Government announced a $1.5 billion investment plan, which aims to position Australia as a high-quality and sustainable manufacturing nation.

Although a very reactive action by Government hopefully, this financial injection is just the beginning when it comes to ensuring the resilience of our manufacturing industry moving forward, with the pandemic being a wakeup call Australia needed.