Construction sector shows resilience amid global disruption
New research found digital technology helped the industry navigate supply chain issues and labour shortagesAustralia’s construction industry has proven more adaptable than expected in the face of major global disruptions, according to a new study conducted by researchers at Adelaide University and Flinders University.
The study found the sector responded to challenges including the COVID-19 pandemic, geopolitical tensions, labour shortages and supply chain disruptions by rapidly adopting digital technologies and innovative practices.
Researchers said the industry experienced significant delays, rising costs and material shortages during the disruptions, but demonstrated resilience through greater collaboration, digitalisation and a stronger focus on sustainability.
“An important insight was how quickly the sector adapted despite severe disruptions, particularly through digital tools and innovative practices,” Adelaide University College of Business and Law researcher, Dr Naresh Gupta said.
“Disruption didn’t just create challenges – it accelerated transformation across the sector.”
The research combined quantitative data from 220 industry professionals with qualitative insights from 19 experts to provide what researchers described as a comprehensive overview of how the construction sector navigated recent crises.
“The construction sector reflects the health of the economy – understanding its challenges helps us prepare for future crises,” Dr Gupta said.
The findings also highlighted the growing importance of long-term resilience, with researchers calling for stronger risk management, greater investment in technology and workforce capability, and improved planning across the sector.
“Resilience is no longer optional – it has become essential for the survival and growth of the construction sector,” said Professor Indra Gunawan from Flinders University.
Published in the International Journal of Production Economics, the study recommended strengthening supply chain resilience, increasing digital technology adoption, enhancing collaboration between stakeholders and embedding sustainability into future project planning.
“The future of the construction sector lies in being adaptable, digital, and sustainable,” Dr Gupta said.
Related: Construction reaching record highs, but structural concerns linger
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