Australia’s workplace strategies continue to be influenced by a K-shaped recovery, where some sectors flourish while others face prolonged challenges.
Office fit-out expenses are climbing due to a convergence of factors. Here’s what you need to know to navigate this trend effectively:
- Labour Shortages and Wage Increases:
The Australian construction sector continues to grapple with labour shortages, pushing wages sharply higher. National figures reveal a 9.8% rise in labour costs, contributing to an overall year-on-year fit-out cost increase of 4.5%. - Material Price Volatility:
While global material prices are stabilising, supply chain disruptions and soaring energy costs in Australia are keeping construction material prices elevated, creating additional pressure on budgets. - Evolving Workplace Designs:
Hybrid work models are revolutionising office layouts, driving demand for cutting-edge technology such as high-definition displays, superior audio systems, and smart office features. These enhancements are inevitably increasing fit-out expenditures. - Sustainability and ESG Compliance:
Australian businesses are prioritising sustainable materials and energy-efficient designs to align with Environmental, Social, and Governance (ESG) goals. Although these choices may entail higher upfront costs, they offer significant long-term value.