Australia’s construction sector struggling with labor shortages due to Russia’s invasion of Ukraine

The cost of building a new home grew by 20% in 2021 due to material shortages, including timber, disrupted supply chains, and demand for skilled tradespeople but costs are set to rise further due to a 35% tariff increase on imports from Russia imposed by the federal government.
The war increased the prices of oil and gas, base metals, and many agricultural commodities, which is going to raise inflation in the country.
In 2021, Australia imported $80 million worth of wood products from Russia and $2.6 million from Ukraine but sanctions due to war are disrupting the actual supply as Wesfarmers-owned retailer Bunnings ordered suppliers to stop buying “conflict timber” from Russia.

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