Aussie builders collapse left, right and centre – MacroBusiness

Hopes of meeting the Albanese Governments plan of building 1.2 million homes over five years have taken another hit with the latest corporate insolvency data from the Australian Securities and Investments Commission:

Overall corporate insolvencies hit their highest level since 2015 in August, with construction insolvencies the stand-out:

This surge in construction company insolvencies reflects a combination of surging financing (interest-rate) costs, soaring materials costs, large numbers of fixed price contracts, and labour shortages.

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Relatively high interest rates on corporate loans about 5% on average for large businesses and 6-7% for small- and medium-sized companies and weak economic growth should see insolvencies t…