The building and construction industry is facing a shortage of apprentices, a situation that threatens the feasibility of meeting Australia's ambitious housing targets. Brian Seidler, Executive Director of the Master Builders Association NSW, recently discussed this critical issue in a 2GB radio interview, highlighting the urgent need for a multifaceted approach to address the looming crisis.

The Scale of the Challenge
Seidler emphasised the sheer scale of the challenge, stating that Australia needs to build 1.2 million homes, with 377,000 in New South Wales alone, over the next four and a half years. He stressed that meeting this demand hinges on addressing the apprenticeship shortfall, alongside streamlining planning processes and ensuring land availability. "The way we're going indicates that the 1.2 million homes that we are to build across Australia and in New South Wales, particularly, 377,000 over the next... four and a half years... it's not doable in the current set of circumstances," Seidler stated.

Three Pillars of Skill Development
The industry traditionally relies on three sources of skilled labour: traditional apprenticeships, overseas workers, and upskilling local residents. Seidler pointed out that all three avenues require significant investment and lead time. "There's no silver bullet," he explained. "You can't just say there's X number of apprentices available to go off and build. They need at least a five to 10 year period of instruction." He further highlighted that an apprenticeship typically takes three to four years, followed by additional experience under a licensed builder's direction before obtaining a licence.

Breaking Down Barriers
A significant part of the problem lies in attracting young people to the trades. Seidler believes the industry needs to be actively marketed as a viable and rewarding career path. "We have to sell the building industry as a profession," he asserted. He also noted the influence of career advisers who often steer students away from trades, a trend he considers detrimental. To counter this, Master Builders is collaborating with universities to create pathways for apprentices to gain university qualifications, making the profession more appealing.

The Importance of Incentives
Seidler strongly advocated for incentives to encourage both employers and apprentices. He acknowledged the ageing workforce, with fewer experienced tradespeople available to mentor apprentices. "There has to be incentives for employers to take on apprentices, and there also has to be incentives for apprentices or young ones to come into the industry," he said. He specifically addressed the need for higher wages, particularly for mature-age apprentices, to compete with other industries and prevent further escalation of construction costs. "It's got to be viable if we want to have an industry that is not going to be subjected to higher, higher construction costs," Seidler noted, highlighting that Master Builders already employs a significant number of mature-age apprentices at higher rates.

A Call for Government Action
Seidler's message to the government is clear: incentivise employers to train apprentices. "How do you incentivise those in the industry to engage and train apprentices?" he questioned. "If you don't get the employer, you don't get a trained outcome."

The apprenticeship crisis is a complex issue with far-reaching implications. Addressing it requires a concerted effort from industry, government, and educational institutions. As Seidler concluded, this is an ongoing conversation, and finding solutions is crucial for the future of the building industry and Australia's housing goals.

Listen to the full interview with Brian Seidler on 2GB here.