Well folks it is startin to happen in our industry. 4 people laid off in the last month now in our construction company.
Will i be next who knows
Hope the banks start releasing some money so people can buy some of our developments please please
Vic
No shortage of development funding available just the requirements are tighter and you need good asset backing and serviceability.
Got a small 80% of GR LVR over the line this week for an established developer who was putting in Nothing.
Had a standard 70% LVR on the land and wnated 110% of construction costs.Those developers who are highly geared are the ones who will feel the first pinch.
Richard Taylor | Australia's leading private lender
I also work in construction, but at the front end, design and architecture.. The story here is very bleek, ive been made reduntant twice since sept 08, and I would be considered very employerable in a good market. Now there are very few jobs, half the job agencies have sacked there architectural agents as there is nothing for them to do, maybe you might see a job a month on line, good luck if you can get on the short list for an interview and dont bother picking up the careers section of the newspaper, its empty. Theres so much competition for jobs that employees are able to fit their wish lists to 100% and fill a position requiring 3-5 yrs expereince with someone with 10-15yrs experience and probably once an assosiate level and pay them a 3-5yr experience salary. Its verfy depressing.
My experience working at this end of Construction is that the first profession to get a wiff of future unstable economic times its architects and developers. The signs were there 6-9 months before the stock meltdown, when massive commercial, residential projects went on hold late last year and have continued to do so ever since. Almost ever fIrm has shed staff and some entire departments including directors now out there picking fruit somewhere.
IF this is a sign of things to come than from where im standing its gonna get alot worse. The only upside for us see property turning from neg to pos geared which is good when you cant neg gear anyway without a fricken job.
Event Horizon and Posenterprizes,
Recession is starting to bight. One of my brothers who works on temporary hire has been almost 100% for last few years, now had half a day last week and a few days this week and looks like continuing downhill.
My future son in law who works at major freight company now is down to few days a week.
Friend a fork lift driver had his offsider put off last week and told he is next in coming weeks.
Bricky friend only has work with one major project, but nothing after that is finished in next few weeks.
It just goes on …..we are in for a long recession…and yes I stick by my projections of large property falls at top end of market.
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