The Housing Industry Association (HIA) has welcomed the release of new data showing a steady uptake of incentives under the Key Apprenticeship Program (KAP), which each represent a future skilled trade in the home building industry.
HIA Managing Director Jocelyn Martin said access to skilled labour was one of the most pressing issues facing the home building sector.
“It is one of the biggest operational issues holding the industry back from contributing to meeting the nation’s housing targets, which have been set by National Cabinet,” she said.
“A recent survey of HIA’s small business members indicated that the cost and access to skilled trades were both in the top five issues placing pressure on builders.
“The survey also showed that 67 per cent of respondents said they were having trouble recruiting new staff or retaining existing workers.
“The KAP data demonstrates 85 per cent of apprentices are with small businesses. Demand for apprentices by small businesses is sensitive to price, which reinforces the view that we need to ensure there is adequate financial support.
“Programs such as the KAP, which provides financial support to apprentices to assist them during their training, are essential to attracting prospective trades into the sector.
“The importance of incentives that support the employers who take on apprentices should also not be underestimated.
“A trade apprentice will not start making a return for the business until well into their second year, and the provision of financial assistance to help defray the additional costs of training and supervision is crucial to make the equation viable for many small businesses.
“Apprentice retention also remains a challenge, therefore targeted retention programs – particularly during the first 18 months where we see a high level of drop outs – are extremely important.
“There is a clear correlation between the availability and level of incentives, and the appetite for employers to take on apprentices and for young people to consider a career in residential building.”
