00:02Brick by brick home building costs are rising as war in the Middle East upends supply chains.
00:09Bricks, flashings, concrete, anything that pretty much comes on a truck and needs to be freighted to site has gone
00:15up in price due to the fuel.
00:17Bradley's suppliers are bringing in fuel surcharges of up to 10%.
00:21We sort of have no choice, they have what we want and if we're not willing to pay the increase
00:25then they just won't bring it to site.
00:27Start rationing the machines out a bit.
00:30This sand quarry that supplies building sites has brought in a fuel surcharge as it churns through 500 litres of
00:37diesel a day.
00:39This current scenario feels a lot like COVID again and we've got this sudden price increase, great deal of uncertainty
00:49on supply.
00:50There are particular fears about materials that are made from petrochemicals.
00:54There is a shortage of key materials that go into things such as our pipes that is having a significant
01:02impact for plumbers and for other plastic type materials.
01:07With prices rising and home construction times under threat, there are now fears that this situation could make the Federal
01:13Government's home building targets even more unachievable.
01:17Master Builders Australia is increasingly concerned about our capacity to deliver 1.2 million homes over five years.
01:25That was always an aspirational target.
01:28As well as delays, there are risks for inflation as the Reserve Bank is already hiking rates.
01:34Ultimately the builders are going to have to allow for these increases, which unfortunately gets passed down to the clients.
01:40All of this during an existing housing crisis.
01:43AFFIRT
01:43He's greedy.
01:45AFFIRT
01:46AFFIRTS
01:47AFFIRT
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