Metricon founder Mario Biasin discussed troubles facing company before shock death

Metricon founder Mario Biasin opened up on the “rollercoaster” of struggles plaguing his company months before his shock death this week.

Metricon founder Mario Biasin shared telling insights into the challenges facing the industry two years before his shock death this week.

Mr Biasin died unexpectedly on Monday at the age of 71, after reportedly experiencing mental health issues.

His death came just days before the firm entered crisis talks amid rumours it was facing financial difficulties.

While Mr Biasin’s death sent shockwaves across the industry, his comments in a May 2020 podcast revealed the challenges the industry in general and Metricon in particular had been facing for some time.

“It’s been a rollercoaster ride to say the least,” Mr Biasin said at the time.

“I didn’t expect this Covid-19 to have the effect it’s had all around the world.”

For days now, concern has been mounting that Australia’s biggest builder was on the verge of ruin, as claims the company had hit financial problems emerged.

Yesterday, acting CEO Peter Langfelder shot down those allegations, declaring it was “business as usual” in a press conference on a building site, although he admitted the company was experiencing some delays on projects.

“Our business has been very strong for 45 years and will continue to (be), for a long, long time to come,” Mr Langfelder told reporters.

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Metricon’s future could be in doubt. Picture: Kiel Egging

“The reality is, we’re strong, we’re paying everybody on time, nobody’s been behind in any payments and if anyone can turn up.”

Metricon representatives also met with the Victorian government on Thursday for crisis talks about the escalating issues plaguing the sector, including the surging costs of essential materials such as timber and steel.

Founded in 1976, Metricon is the largest player in the sector, employing 2500 Australians with 4000 projects in the pipeline, which is why speculation about the giant’s collapse has sparked panic across the nation.

But while Metricon’s future may be uncertain, it is just the latest Australian construction firm to face troubles this year, after Gold Coast-based Condev and industry giant Probuild both already went into liquidation in recent months.

Smaller operators like Hotondo Homes Hobart and Perth firms Home Innovation Builders and New Sensation Homes, as well as Sydney-based firm Next have also collapsed, leaving homeowners out of pocket and with unfinished houses.

But Metricon acting chief executive Peter Langfelder insists it’s “business as usual”. Picture: Kiel Egging

Meanwhile, experts are sounding the alarm over a perfect storm of conditions to hit the sector, including staff shortages, supply chain disruptions and skyrocketing costs coupled with ongoing interest rate hikes on the horizon.

It's expected those factors will see a drop in construction in the near future, while customers are also being hit hard in the form of delays and unwelcome cost increases.

At a housing industry event on Thursday, Westpac chief economist Bill Evans said a “a very major correction” was already happening within the industry in the wake of a peak in interest caused by the government’s HomeBuilder scheme.

“If you want to think about the pressure that HomeBuilder has put on demand, Victoria has suffered more than any of the others,” Nine newspapers quoted Mr Evans as saying.

“And now, of course, we are seeing a very major correction.”

According to the Australian Bureau of Statistics, approvals were at 13,000 in June 20202, before soaring to 23,600 the following March, just before the scheme ended.

If Metricon fails it will join a long line of recent construction collapses including big name firms such as Probuild and Condev.

This March, approvals fell to 15,000 – a figure expected to plummet further still when the cash rate continues to rise in the months ahead.

‘Very upsetting’

Meanwhile, a number of Metricon customers have come forward to share their alarming stories as the crisis rages on.

One of those is Brisbane woman Kim James, who told A Current Affair construction on her new home began 10 long months ago, before the work stalled.

“It’s very upsetting and it’s caused a lot of stress. Just not on me, but my whole family as well,” she told the program.

“Because you think, ‘what’s gonna happen next’? And then now you think, ‘am I gonna get a home? I just want a house’. That’s all I want is a house.”

NSW couple Jessica Snowdon and her husband Steve also told news.com.au they were terrified by the Metricon situation after forking out $31,500 in an initial deposit to the firm just four weeks ago.

“We were just freaking out [when we saw the news], what’s going to happen?” Ms Snowdon told news.com.au.

“It’s scary because we don’t know whether to pull out or not, if we pull out we still lose our money.”

– with Sarah Sharples

Originally published as Metricon founder Mario Biasin discussed troubles facing company before shock death