Sunshine Coast builders fear they won’t turn a profit in 2021

Skyrocketing prices and a ‘massive’ shortage of building materials and tradespeople has crippled Queensland builders who fear they will not turn a profit in 2021 and are ‘working for free’.

Sunshine Coast builders say 2021 has been the worst year on record and that they're unlikely to turn a profit due to a large number of factors. Pictured is Grant McDonald of Grant McDonald Homes who is struggling. Photo: Contributed

Skyrocketing prices and a “massive” shortage of building materials and tradespeople has crippled Sunshine Coast builders who fear they will not turn a profit in 2021 and are “working for free”.

Local builders say they were gearing up for a positive 2021 with high demand for new homes generated by the $25,000 HomeBuilder Scheme which was introduced to spark the post-COVID economy.

However, in the long run, the scheme and its extension has backfired on the building industry.

Many local firms said they were locked into contracts at fixed prices at the start of the scheme but a “massive” shortage of roofing materials, timber, frames, trusses, hinges and tradespeople had driven prices up.

This meant many Coast builders now no longer expected to make money in 2021.

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Third generation builder Mitch Butler, who started out in the Coast construction industry in 1971, said it had been the toughest year he had experienced.

Director of Coastland Builders Mitch Butler with a HIA award he won in 2016 for this energy efficient residence at Golden Beach, Caloundra. Photo Lachie Millard

“It’s absolutely killing us,” Mr Butler said.

“We thought it was going to be the best year ever, we signed all these contracts, then everyone put their prices up.

“And we are fixed, locked in. So we are all losing money.

“I tell you, it’s a s--- feeling working hard for free.”

Master Builders’ Sunshine Coast regional manager Nicola Scott said the scheme had created a flurry of activity which led to the demand outstripping the supply to create a “massive” trade and supply shortages.

“They’re in this profitless bubble, there’s no winners here,” Ms Scott said.

“We are consistently getting calls for people needing roofers, carpenters, tilers, the trade shortage is massive.

“The builders are having to absorb the cost of these massive price rises.”

Grant McDonald of Grant McDonald Homes said on Friday he had a roofing job go up by $5000 overnight on a build at Pelican Waters.

Mr McDonald, 40, said there was nothing he could do about it.

“I pre-warned the owners but that was a big one I didn’t expect,” he said.

“I’m trying to be ultra-organised and think 10 weeks in advance to give everyone as much notice as possible.

“But if the owners aren’t accommodating and the percentages go up massively, we’re in the hands of the gods.”

Murphy Builders Sunshine Coast managing director Mark Berry said construction start dates were being pushed back weeks which was frustrating for owners hoping to move into their homes.

“There’s an eight-nine week delay for timber which we have to relay to our clients,” he said.

“It can delay a house by five-six weeks, depending on whether you can get a roofer or the materials or not.”

Because of the roofing material shortage, Murphy Builders have had no choice but to switch to tiled roofs to combat the issues.

He, and Ms Scott, said the cost of roof prices had gone up about 30 to 35 per cent.

Mr Berry said he couldn’t wait to see the back of 2021 which he said was his worst year in his 23 years at Murphy Builders.

Murphy Builders directors Mark Berry, Brooke Bastien and Leigh Murphy.

“I don’t think I’m the only builder not making money, s--- it’s stressful,” Mr Berry said.

“We are sending subbies purchase orders locked in and they’re sending them back with a new price.

“There’s nothing we can do, absolutely nothing.

“Our margins go down to zero and we just have to hope we make money next year.”

Mr Berry said while it was all well and good to stimulate the economy but he posed the question as to how many builders would “go broke by Christmas”.

Originally published as Sunshine Coast builders fear they won’t turn a profit in 2021