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South Australian manufacturers are set to reap the benefits of momentous reforms from the state government dictating their future customer base.
Under the new mandate, products manufactured within South Australia must be used on public housing construction and maintenance programs within the state, following new reforms introduced by the Malinauskas government.
The government will require core products utilised in construction to be manufactured within the state. This includes bricks, timber frames, concrete, reinforcing steel, steel frames, windows, security doors, and steel for roofing, fencing, and rainwater tanks in a boost for local businesses and manufacturers that are set to benefit for the Labor government’s $177.5 million commitment to constructing 400 new affordable homes and refurbish a further 350.
Current estimates postulate these products account for just over half (58 per cent) of the cost of building an average dwelling.
South Australian Treasurer Stephen Mullighan said the government is “changing these rules because buying local products means supporting South Australian businesses and local jobs”.
He believes the reforms can provide “a huge boost to the local economy” by changing the “buying habits of government departments away from interstate and overseas suppliers to local Australian businesses”.
Additionally, the state’s Housing Authority will release tenders for construction of 103 homes, including the first six homes at Broadview, which also requires 90 per cent of labour hours to be conducted by South Australian workers, with 20 per cent of those being supplied by apprentices, trainees, Aboriginal workers, or the long-term unemployed.
The government is targeting an increase of $425 million per year in work awarded to South Australian businesses.
State Minister for Small and Family Business Andrea Michaels added: “Many local residents in Broadview will be happy to hear this parcel of land is going to be developed, and it is exciting that the homes will be constructed with as many South Australian products as possible.
“As Minister for Small and Family Business, I know every contract counts and can make a big difference.”
She shared her pride in her government for “giving hard-working South Australians a competitive edge and ensuring the economic benefits stay right here in South Australia”.
According to the state’s budget statements for FY 2022–23, “the residential construction sector has been experiencing very high levels of activity following the highest per capita take-up in the nation of the HomeBuilder Scheme.”
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