Rising Plumber Labour Costs to Impact Aussie Building Costs for Years: Insights for the Plumbing Sector
So, is getting a plumber to your home to fix your hot water service expensive?
It’s essential to understand the underlying costs of employing a plumber today.
The costs add up quickly with rising labour rates driven by:
- Union agreements,
- changes to the Fair Work Act
- a shortage of skilled workers,
- and the extensive training required to become a qualified tradesman.
These factors significantly challenge the plumbing industry, making it more difficult for plumbing companies to maintain reasonable pricing while ensuring high-service delivery. Let’s explore why these costs rise and how they affect you as a homeowner.
“Labour costs are skyrocketing, affecting everything—from building new homes to simply unblocking a toilet,” says Gary Mays of Whywait Plumbing. “It’s a ripple effect that hits every corner of the industry.”
The cost of building in Australia continues to rise, driven by increasing labour rates. As Australia’s leading construction cost data experts reveal, a shortage of skilled workers and upcoming union pay rises will keep labour costs high for the foreseeable future.
This trend threatens the profit margins and survival of many companies in every construction industry sector that don’t monitor their labour costs, direct labour costs such as their hourly rate and indirect ones, such as superannuation, personal leave, holiday leave, and productivity.
Steady Costs, Rising Labour Rates
While energy, materials, finance, and supply chain procurement costs have stabilised post-COVID, labour costs differ.
Rawlinsons, a leading national construction costing agency, reports that labour cost increases could spell trouble for the already pressured construction sector.
High Demand for Experienced Skilled Plumbers
The ongoing housing crisis, upcoming Olympic Games, and net-zero carbon emissions goals by 2050 ensure high demand for skilled workers. According to Rawlinson’s director, Niall McAree, the current instability in labour costs is due to demand outstripping supply.
“You have multiple different construction sectors that are going strong with major infrastructure and transport projects in most states,” McAree said. “Everyone is still pulling out of that one pool of contractors, making skilled workers more valuable.”
Recent Queensland Government Pay Deals
Last month, the Queensland Government secured a deal with construction unions for significant pay increases. This includes more than $10 an hour over the next four years and an extra $1,000 a week for working away from home.
- Crane operators: From $2,394 a week
- Fourth-year electrical apprentices: $44 per hour or $1,585 a week
- Skilled labourers: From $47.63 to $57.89 an hour by 2027, totalling $2,084 a week
- Carpenters and qualified tradespeople: From $54.12 an hour to $65.78 by 2027, totalling nearly $1,948 a week
Union Agreements Setting the Standard of Plumbing Labour Costs
McAree explains that union pay rises will drive costs across non-union sites. “These union agreements set a precedent for where labour rates are going. They impact the entire sector, regardless of union affiliation.”
Plumbing Apprenticeship Wages vs. University Students
The difference between plumbing apprenticeship wages and the earnings of university students is striking. Apprentices in the plumbing trade earn significantly more than their university counterparts, who often work unpaid internships.
For example, a fourth-year plumbing apprentice earns about $44 per hour or $1,585 weekly. This income supports apprentices as they learn, providing financial stability that many university students lack.
But there’s more to it than just the guaranteed wage. Apprentices are gaining hands-on experience and valuable skills from day one. In contrast, university students might spend years in lecture halls without practical experience, all while racking up substantial student debt.
Apprenticeship wages reflect the work’s value and the critical demand for skilled plumbers in the current market.
The Path to Becoming a Skilled Plumber
Becoming a skilled plumber requires dedication and time. Unlike many professions where a degree can fast-track you into the workforce, plumbing demands formal training and extensive hands-on experience. Mastering the plumbing trade truly takes at least ten years.
During this time, apprentices move from basic tasks to more complex projects, continually building their expertise. This gradual progression ensures they have the comprehensive skills to tackle any plumbing challenge when fully qualified. It’s a rigorous process that provides only the best and most competent plumbers to serve the community.
This commitment to thorough training and experience sets skilled plumbers apart. It’s why a seasoned plumber can diagnose and fix issues that a less experienced worker might need attention to. Investing time and training ultimately benefits homeowners, providing reliable and efficient service.
Construction Plumbers vs. Maintenance Plumbers
There’s a massive chasm between construction and maintenance plumbers regarding the skills required. Construction plumbers typically work in a supervised environment, focusing on frequently repetitive and thoroughly planned documented installations.
In contrast, maintenance plumbers must evaluate and diagnose the unknown. Hidden problems in plumbing systems are the norm for maintenance plumbers who require diagnostic skills that construction plumbers do not possess. This requires a strategic approach to problem-solving and a deep understanding of plumbing systems.
Navigating Rising Costs with Reliable Data
Firms can confidently refer to trusted resources like Rawlinson’s Construction Handbook 2024 and Construction Cost Guide 2024 to manage rising labour costs. These guides provide strategies that ensure fair pay rates while protecting profit margins.
“These books are essential for accurate labour cost estimation,” McAree said. “They offer detailed, up-to-date information on labour rates, productivity, and industry standards, providing invaluable insights into current market conditions.”
Implications for the Plumbing Sector From Increasing Plumbing Labour Costs
Understanding these trends is not enough. Whywait Plumbing must take proactive steps to manage the impact of rising labour costs on project pricing and profitability. Staying informed and adapting to these changes will be vital to maintaining competitive and sustainable business practices.
Gary Mays sums it up nicely: “We need to stay on top of these changes to keep delivering high-quality professional service without going under ourselves.”
So, next time you see a Whywait plumber, just remember—they’re working in an industry where labour costs are rising, driven by union agreements impacting the entire sector.
