Building costs in Australia have permanently gone up—and it’s not just materials. 🏗️ Sure, steel prices have eased slightly, but labor and trades? They’ve shot up—and here’s why: ⛏️ The mining boom is back, and they’re offering top dollar for workers. 🚧 Government infrastructure projects are giving tradies plenty of options. It’s a classic case of supply and demand, and it’s driving up costs for everyone building homes. The question is: how do we adapt? 💡 #BuildingCosts #ConstructionInsights #RealEstateAustralia #HousingMarket #AussieProperty
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Traditional Owner Businesses and the Argyle Diamond Mine Closure #Gelganyem Limited is proud to be a co-naming rights sponsor of #KEF2024 and engage in critical discussions that are impacting Traditional Owners connected to the Argyle diamond mine. DID YOU KNOW? The involvement of Traditional Owners, including Traditional Owner Business (TOB) participation, in the closure and rehabilitation of the Argyle diamond mine is changing the way mining companies and the State Government understand, value and invest in planning a pipeline of opportunities that begin with TOs. TOBs play a crucial role in the mine closure process by providing a broad range of services including earthworks and civil packages, plumbing, electrical, maintenance, environmental monitoring, land management, cultural awareness training and cultural heritage protection. There are 21 TOBs onsite, 7 offsite (not working on ADM closure) and 4 new businesses (still getting established). Gelganyem is proud of the tenacity TOBs demonstrate daily and are proof that the fastest, most direct way to contribute to Indigenous and regional economic participation is via long term, commercial opportunities that value the depth of skills, knowledge and experience they bring to the table. When this happens, the ripple effects are enormous including training and employment with more of our mob, supply chain opportunities with other Aboriginal businesses, mentoring and networking and above all the ability to show what genuine leadership looks like when culture, commerce and community come together to care for Country. 20 years ago, #RioTinto committed to supporting TOBs through the Argyle Participation Agreement throughout the life of the mine, including closure. Moving from good intentions to procurement that results in long term outcomes requires courage and a willingness to make decisions that typically challenge bias, stereotypes and policies that are either not fit for purpose or created to bypass engagement of TOBs. TOs and TOBs are critical partners in closure and look forward to sharing how proponents and regulators can improve outcomes for the next mine closure in Western Australia. To learn more about the capability of some of the TOBs simply visit this link >> https://lnkd.in/gjhhWcrE And if you’re attending the KEF we encourage you to seek TOBs out and hear from them about their experiences and how they may be able to help you in your next project. #traditionalowners #mineclosure #FPIC #minerestoration #SERstandards #indigenousrights #caringforcountry #argylediamonds #indigenousbusiness #gooringjimbalacontracting Dominique Reeves Jessica Welch Matthew Renkert Steve Sharpe Mark Beyer Chamber of Commerce and Industry WA The Chamber of Minerals and Energy of Western Australia National Indigenous Times The Indigenous Business Review MDM Mining and Civil Riley Shaw Amy Wright Gemma Brown Rebecca Brown Don Punch Stephen Dawson Keda Bond Tegen Scott Guy Boggs Lee Claffey
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Good to see that investments in the defense industry are not on that list even though they hold many of the advantages your firm is looking for - pricing power, long term public contracts, government subsidies, monopoly positions in certain areas and favorable regulations. If I was able to make a recommendation to stock markets and governments it would be that Defense and military contractors should be allowed to be a part of public equity and debt markets. They should be within government. Also listed companies should be required to disclose whether any of their products or services are used by the military.
💡 Pricing Power in Aggregates At Blackwattle, we focus on companies with persistent advantages and durable growth. A key factor we consider is pricing power, as Warren Buffett famously said: "The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business." A prime example of an industry flying under the radar with strong pricing power is aggregates—the producers of crushed rocks used in cement, asphalt, and construction fill. Here’s why aggregates exhibit strong pricing power: 👉Inelastic demand: Aggregates make up a small portion of construction costs, yet they’re essential for nearly every major project. The risk of project delays far outweighs a modest increase in aggregate prices. With no substitutes for aggregates in construction, infrastructure, and road building, these companies maintain strong pricing power throughout economic cycles. 👉Local market dominance: Since aggregates are costly to transport, companies often hold regional monopolies or duopolies, allowing them to raise prices even when demand softens. 👉Limited competition: The aggregate industry is consolidating, with few entrants. New quarries hard to develop due to zoning regulations and the years required for mining permits. Industry leaders tend to expand through acquisitions rather than building new sites. With ongoing shortages of crushed stone and rising demand, higher-than-average price increases could continue in the near term. Over the past 30 years, aggregate prices have steadily risen, even when demand softened, showcasing the industry's resilience. Tailwinds supporting future demand include: 🎯 Public infrastructure spending: Programs like the Infrastructure Investment and Jobs Act (IIJA), which allocated $1.2 trillion for transportation and infrastructure, are boosting demand. The IIJA reauthorizes surface transportation funding for 5 years, including $118 billion for the Highway Trust Fund. 🎯 Residential construction: Recent interest rate cuts and ongoing housing shortages are driving new construction, which will increase aggregate demand. 🎯 Non-residential construction: Policies like the CHIPS Act, Inflation Reduction Act (IRA), and manufacturing-related tax credits are incentivizing manufacturing and industrial production in the U.S. 💬 What other industries do you think have strong pricing power that often fly under the radar? 🔔 Please follow us at Blackwattle Investment Partners, Sunny Bangia, Edward Li, Nicholas T. for more insights. #Blackwattle #Alignment #Quality #Trust Disclaimer: Equity Trustees Limited ABN 46 004 031 298 AFSL 240975, is the Responsible Entity for the Blackwattle's Funds. This information does not take into account the investment objectives, financial situation or needs of any person. Returns are not guaranteed. You should read the PDS & TMD and all Disclaimers on our website
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New figures from the Mineral Products Association show a ‘modest’ improvement in sales of construction aggregates and asphalt for Q2, 2024. https://lnkd.in/ecRj89aE
Investment uncertainty 'hurting' mineral products sector | Project Scotland
https://projectscot.com
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With the new Labour government’s ambitious housing targets, the UK faces a significant challenge in meeting the need for construction aggregates. The gap between the extraction of construction aggregates and the replenishment of these resources through new mineral planning permissions has been widening for years. We caught up with Partner and minerals expert, Tom Giddings, to learn more 👉️ https://bit.ly/3BtzScc #WeAreFG #Minerals #Construction #Government #Housing #Development #Planning
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A different country but a strangely familiar story where the supply of construction materials is not keeping up with demand. The recent UK Mineral Products Association survey shows the availability of essential minerals is fast approaching a cliff-edge. If the long-term trend of diminishing reserves from local domestic sources continues, it is inevitable that the tensions involved in maintaining future supply will be exacerbated. In turn, this will result in increased costs to supply, but also increased energy consumption and emissions, as materials will have to be transported over ever-growing distances to fulfil demand. For the full report https://lnkd.in/g8G38ews
Future supply of construction materials ‘approaching a cliff edge’, warns MPA
aggbusiness.com
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Planning Services UK: Advocating for Rational Planning Practices At Planning Services UK, we believe in fighting for our clients on all applications, whether big or small. Recent interactions with Planning Authorities have raised concerns about the practicality of certain requirements. One of our clients purchased a site approved for two houses in May 2023, under Class 9 dwellings (Scotland). The client intends to repurpose the site for Class 6, storage and distribution. However, we encountered an unexpected hurdle. Today, one of our planners was informed by the Local Planning Authority (LPA) that a coal mining risk assessment (CMRA) is required. Despite highlighting that the site was approved for residential use just over a year ago, the LPA insisted on this assessment for the new application. This requirement appears unreasonable. If the site is deemed safe for residential use, it should logically be safe for a few trucks as a base. Furthermore, these assessments are costly, often exceeding £1000. Given that the last underground coal mine in Scotland closed in 2002 and no mining has occurred since, such demands seem unjustified. At Planning Services UK, we are committed to protecting our clients’ interests and ensuring that all required reports are necessary and reasonable. We urge the RTPI to remind its members of the financial burden these reports can impose and to consider the relevance and justification for such requests. We will continue to advocate for common sense in planning practices and stand by our clients every step of the way. #planning #townplanning #planningconsultants #planningconsultant #planningapplications #coalauthority #cmra #townplanners #architects
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BY ALL MEANS: What the #mineralproducts industry achieves to meet the UK's material demands is nothing short of phenomenal. Moving a million tonnes of essential minerals every day, by road, rail, river and sea, is no mean feat. It's the biggest flow of materials in the UK economy and something the industry takes in its stride – so much so that it's taken for granted by many and that can create some real challenges. In the new Mineral Products Today magazine, we talk to the MPA's Mark Russell along with Maggie Simpson OBE of the Rail Freight Group, Guy Bates of Network Rail, Richard Ballantyne OBE of the British Ports Association, and @James Trimmer of the Port of London Authority about some of the issues and ways to overcome them. Read the feature article 'Moving Mountains' here (pp5 - 8) : https://lnkd.in/eURbbrRv #Freight #Transport #Haulage Mineral Products Association Mineral Products This is UK Concrete MPA Precast Asphalt Industry Alliance MPA Lime MPA Masonry Minerals Matter The Institute of Quarrying Road Haulage Association (RHA) Department for Transport (DfT), United Kingdom Department for Levelling Up, Housing and Communities Transport for London Royal Town Planning Institute The Construction Index Ltd Construction Leadership Council Hillhead - International quarrying, construction + recycling show Aggregates Business Magazine #essentialmaterials #sustainablesolutions
Mineral Products Today - Summer 2024
mineralproducts.org
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With the Encore Recertification Program, you can choose the tiered level of service that best meets your needs. But, the program offers even more flexibility with some additional benefits. You can purchase one program tier, but retain the option to upgrade to the next tier while paying only for the level of service that is performed. You can also purchase any additional parts required for proper repair – without additional installation charges. Find out more about how the Encore Recertification Program can maximize performance in this blog post: https://loom.ly/SJK2SFc #compactor #constructionequipment #constructionmachinery #rockdrilling #demolition #miningindustry #equipmentdistribution
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New construction data from Stats NZ released in April shows that it takes around 569 days on average for a home to be built after it receives a building consent. That’s why the Government is clarifying the definition of a ‘minor variation’ and introducing ‘minor customisations’ to the Building Act. This will provide more flexibility, which will help reduce delays and lower the cost of building and renovating. Click the link below to read more! https://lnkd.in/gEXh_VZW
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SIGNS OF STABILISATION? Our latest survey of Britain's heavyside construction materials market reveals signs of stabilisation in sales volumes. The report covers five essential product areas – crushed rock, sand & gravel, asphalt, ready-mixed concrete, and mortar – that combined represent the biggest flow of materials in the GB economy. The data for the third quarter of 2024 shows modest overall growth, albeit from a low base, following a prolonged downturn that began in mid-2022. “The latest data suggests that construction mineral markets may have reached a low point, with early signs of recovery in some regions and markets. Yet, the demand environment remains challenging, with prospects hinging on a recovery in housing, progress on infrastructure delivery, and sufficient funding for local road maintenance,” said Aurelie Delannoy, MPA Director of Economic Affairs. “As we look toward 2025, we remain cautiously optimistic that an improving economic backdrop will support a gradual return to growth across the industry.” Britain's £22 billion mineral products industry is the biggest supplier to the construction industry, employing 80,000 nationwide and delivering £8 billion in GVA. Nothing gets built without mineral products, 99% of which are sourced and manufactured in Britain. Read the full story: https://lnkd.in/eMwZRha9 MPA Precast MPA Mortar This is UK Concrete Asphalt Industry Alliance Construction News Construction Leadership Council Ministry of Housing, Communities and Local Government HM Treasury CBI (Confederation of British Industry) The Institute of Quarrying IOM3 (Institute of Materials, Minerals & Mining) Minerals Matter #aggregates #asphalt #concrete #mortar #essentialmaterials #sustainablesolutions
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Australia’s #1 Property Investing Authority | 👉 I help everyday Australians create financial freedom through smart property investment, using the tried and tested Markoski Method™.
2wHigher wages and more demand mean higher costs. It’s all about adapting to the new normal.