Australia's construction sector is bracing for a fresh wave of financial instability as two of the nation's dominant cement suppliers, Holcim and Heidelberg Materials, announced immediate price hikes.
Driven by surging fuel costs linked to escalating conflict in the Middle East, the increases are set to add hundreds of dollars to the cost of a standard residential slab, further straining an industry already grappling with thin margins and fixed-price contracts.
Holcim, owned by a Swiss conglomerate, informed clients that "significant economic volatility and supply chain disruptions" have made it impossible to continue absorbing operational costs.
The firm has implemented a surcharge of $8.67 per cubic metre.
Similarly, German-listed Heidelberg Materials has introduced a $8.10 fuel surcharge.
While the rollout is nationwide, Perth-based projects have been granted a fortnight’s grace period before the levy takes effect.
Reece recently flagged a 36% spike in plastic pipe costs due to resin shortages, while timber suppliers have warned of 15% increases for plywood and particleboard.
In western Sydney, S&L Concrete's Shane Muscat noted that combined increases in concrete and steel reinforcement rods are adding up to $500 to the price of a new home's foundation.
For many subcontractors, these "imposts" represent a direct hit to the bottom line, as quotes issued months in advance must be honoured despite the rapidly inflating cost of raw materials.