Challenges in recruitment for the Construction, Supply Chain and Manufacturing sectors.

Diane Taylor • April 10, 2025

Australia's construction, supply chain, and manufacturing sectors face several challenges impacting recruitment and workforce management. Key issues include:​

1. Labour and Skills Shortages

Due to an aging population and a decline in apprentices, there’s a shortage of thousands of tradespeople in the construction sector. Manufacturers report significant difficulties in filling essential positions, particularly in digital technology operations, advanced machinery maintenance and quality control. This hampers production capacity and innovation. (source: ​https://pattens.com/insights/manufacturing-sector-of-australia-in-2025/)

 

2. Rising Costs

Rising labour and equipment costs, along with regulatory compliance has put a huge strain on project budgets and timelines. This has resulted in many construction  companies folding or many unfinished developments.  Increasing energy expenses has also forced companies to invest in in energy-efficient technologies and renewable energy sources. These factors have put added pressures on companies to reduce headcount to sustain budgets.

 

3. Regulatory and Compliance Pressures

New regulations, such as climate-related financial disclosures, require firms to adapt to stricter compliance measures. These changes now require the services of expert staff to ensure that they adhere to these regulations and are compliant.

 

4. Workforce Retention and Development

Attracting and retaining skilled workers is a significant challenge. The construction and manufacturing sectors need to invest in workforce development, including apprenticeships and training programs, to build a sustainable talent pipeline.

 

Solutions to addressing these recruitment challenges

  • Government-Industry Training Initiatives: Partner with TAFEs and universities to create industry-specific training programs.
     
  • Upskilling and Reskilling Programs: Invest in on-the-job training, digital literacy, and tech-focused certifications to modernise workforce capabilities.
     
  • Apprenticeship Incentives: Introduce financial and career incentives for young people entering trades, supported by mentorship from senior workers.
     
  • Workforce Planning & Cost Modelling: Use predictive analytics to optimise labour allocation and project staffing needs.
     
  • Structured Career Paths: Implement internal programs that clearly map career advancement opportunities.
     
  • Flexible Work Practices: Where possible, offer hybrid arrangements or flexible rosters to improve work-life balance.
     
  • Recognition & Wellbeing Initiatives: Launch programs that reward performance and support mental and physical health.
     
  • Employer Branding: Promote the company’s culture, values, and long-term career benefits to attract new talent and retain current staff.


Addressing these challenges requires a multifaceted approach, including strategic workforce planning, investment in training and development, enhanced supply chain management, and proactive engagement with regulatory changes. Collaboration between industry stakeholders and government bodies will be crucial to building a resilient and skilled workforce capable of meeting the demands of Australia's evolving construction, supply chain, and manufacturing sectors.


By Shazamme System User July 23, 2025
Workforce Management, Psychosocial Hazards & Leadership
By Diane Taylor July 23, 2025
Work-life balance isn’t a luxury, it’s a necessity
By Diane Taylor June 18, 2025
High Demand for HR Talent
By Diane Taylor June 5, 2025
Why Businesses Need to Consider Temporary Staff
By Diane Taylor May 1, 2025
Why Recruitment Agencies and Councils Make Powerful Partners in Building Local Talent.
By Diane Taylor April 30, 2025
As we move into the final quarter of the financial year, it’s a great time to reflect on the strong performance of Q3 and set our expectations for what’s shaping up to be a mixed but potentially high-impact Q4.
By Diane Taylor April 14, 2025
Tackling the Talent Crunch: Current Challenges in Finance & Accounting Recruitment in Australia (And How to Overcome Them)
By Diane Taylor April 9, 2025
Australian Human Resources (HR) professionals are facing multiple challenges such as changing workforce demographics, AI and the ethical concerns and changes in compliance. Here are some of the challenges currently faced by HR teams:
By Diane Taylor April 9, 2025
CEOs today are facing several significant challenges when managing staff, here are some of the current concerns and potential strategies to overcome them:
A group of people are sitting in chairs waiting for a job interview.
By Erica Westbury August 29, 2024
It’s definitely a funny old market. On one hand I’ve got a friend with a sizeable retail business telling me his last ad for casual workers attracted over 900 responses and then I’ve seen people come to us after having chronically unfilled job vacancies in their business costing them an absolute fortune in lost customers and reputation. Granted the casual workers aren’t the skilled labour market we work in but I’m not sure anyone could have guessed this shifting job market 6 months ago. Seek are quoting job ad numbers are highest since the Covid-19 pandemic and we’re definitely feeling it at Norwest Recruitment. Not all companies are thriving of course and my heart goes out to those but many are and recruitment plans for our clients in Western Sydney are pedal to the metal. So that means that skilled job seekers have choice. Not only are they a little gun shy at leaving the company that kept them through the tough times of Covid but they now have plenty of options. Their counterparts who were let go when Covid hit will also be wanting to make it into your shortlist. It’s going to take some due diligence to work out which one you want in your business. We all know the cost of a bad recruitment hire. One hiring mistake I’ve seen a few times in the last month may be because some hiring managers aren’t aware of the changed market conditions and are feeling over confident. Maybe they think there’s 900 skilled professionals applying for every job. Four times this month I’ve heard of offers to candidates being less than the salary they were represented at. What??? One thing I’ve learned in life – don’t mess with people’s salaries. It’s very personal and it’s often attached to their status and ego. We all live to our salary capacity. There usually isn’t any wriggle room to drop. Don’t mess with it. This is what happens next. You will not get another bite at that cherry. Don’t think for a minute you’ll be able to come up to meet their salary expectation once they’ve rejected your low-ball offer. It’s over. Very rarely have I seen job seekers accept the reduced salary offer. It’s a risky move. If they’re talking to another company you’ve lost them. Sometimes I’ve seen them decline and then accept the second higher offer. Sometimes. But here’s how that scenario plays out. It’s can be even worse than the jobseeker declining. They accept it. They accept it with a bad taste in their mouth and then keep their eye on the market and feelers out with recruitment agencies. As soon as a Recruiter represents another role to them they’re gone – two months into starting in the new job. It’s disruptive, costly and time consuming. Back to square one for you. So, recruitment 101 tip. Unless the job seeker doesn’t meet the job criteria and hasn’t got the right experience do not think this is a good time to save money. Don’t risk the best person in your shortlist going to your competitor. Here’s to attracting and retaining the very best people in 2021.  Written by Erica Westbury, Managing Director of Norwest Recruitment.