Weld Australia’s 2024 Member Survey reveals that Australia’s welding and fabrication industry is facing chronic work shortages, along with cost challenges amid rising prices of energy, materials and labour.
Weld Australia advocates for Federal and state governments to commit to building sovereign manufacturing capability by legislating local content policy.
This will create a capacity mechanism that generates a clear, long-term signal for in the necessary technology, workforce, and equipment. With long-term demand a reality, local manufacturers will have the confidence to improve production efficiencies and global competitiveness.
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“Australian welding businesses are facing unprecedented pressures. Lack of work, combined with the rising costs of energy, materials and labour, is making it nearly impossible for companies to invest in the technology and skills necessary to stay globally competitive,” CEO of Weld Australia, Geoff Crittenden said.
“We need a clear and enforceable commitment from the Federal and state governments to support local manufacturing.”
Weld Australia’s 2024 Member Survey found that half of welding workshops are operating at 80 per cent capacity or below, with seven in ten members indicating they have the capacity for additional work.
The overwhelming concern across the industry is the lack of a steady pipeline of projects, with 75 per cent of respondents citing a lack of work as their primary challenge.
Potential solutions
“The solution lies in enforceable local content requirements,” Crittenden said.
“Government-backed initiatives must prioritise Australian-made steel and fabrication in renewable energy projects and other infrastructure developments. This would provide the long-term security our industry needs to invest in advanced technologies, productivity improvements, and workforce development, ensuring Australia remains competitive on a global scale.”
“Local content legislation must specify that 60 per cent of all fabricated steel used in our renewable energy projects is manufactured in Australia by local welders.”
“The legislation must be drafted in conjunction with industry to eliminate the loopholes that so often arise in these types of policies. Australian governments must also mandate that all wind towers are constructed, erected and inspected according to Australian Standards.”
Factors most likely to inhibit business growth over the next 12 months
- 64 per cent of business owners cited the rising cost of energy
- 61 per cent cited the rising cost of materials
- 50 per cent cited rising labour costs.
“A clear pathway to productivity is through the use of technology. When companies are focused on improving their processes, they naturally innovate—implementing the latest technologies in a bid to streamline operations. However, uptake of advanced welding technology remains relatively slow,” Crittenden said.
“This lack of tech adoption is impeding our ability to navigate the current challenges facing the industry.”