Management
Hey Mercy, I have to submit my full thesis this year. Task #26674 was the first part of the thesis. I need you to review and redo this task based on the lecturers feedback. I got 54/100 as the overall score for this part so I need you to review every single comment made and change in accords to the comments. I have uploaded the assessment criteria and the review done by the lecturer. The review includes both comments and an overall feedback on the (last page) ensure you read it thoroughly please.
So basically you’ll be rewriting/improving the first part of the thesis.
In 2-3 weeks, I will send all the details for second part of thesis.
ANSWER
How COVID-19 has contributed to the shortage of construction materials in Australia
Table of Contents
Contents
Introduction and Background. 2
Aims, Objectives, and Research Questions. 7
Introduction to Methodology. 17
The use of Literature Reviews. 18
Introduction
Introduction and Background
For the longest time, Australia’s construction industry has contributed to the country’s growth and development. The sector generates $360 billion yearly in revenue and has contributed to 9% of the nation’s Gross Domestic Product (National Industry Insights Report, 2021). This sector has been projected to grow at an annual rate of 2.4% in the next five years (The National Industry Insights Report, 2021). These statistics show that this domain has massive potential and capacity to accelerate Australia’s economic growth and development. Amidst the economic challenges brought forth by the COVID-19 pandemic, this sector is expected to rebound in 2021 and grow by 2.6% in real terms (Business Wire, 2021). In 2020, it witnessed a 4% productivity decline due to reduced customer and investor confidence and rising oil prices (Business Wire, 2021). Overall, the fluctuations witnessed in Australia’s construction sector are linked to reduced labor availability on worksites, social distancing restrictions, and supply chain disruptions (Business Wire, 2021). Supply chain limitations exist as the primary factor leading to the shortage of construction materials in Australia. This has created a scarcity of resources construction materials since Australia cannot import products from worldwide markets. For example, lockdown imposed by communities like China, the US, and Indonesia means limited or no access to construction products. According to Ogunussi et al. (2020, p.122), Indonesia and China remained in lockdown and inaccessible for materials and equipment needed in the construction sector. This is expected to have crippled the delivery of construction projects in Australia. Most building projects have stalled due to the failure of these items to reach the sites based on directives initiates to curtail the spread of the virus. The supply chain was altered due to the safety and security guidelines established by the government to protect its citizens against potential virus attacks. Notably, this industry has continued to experience reduced cash flows due to poor business operations created by the pandemic. The construction sector has experienced a financial strain since the virus emerged. The Australian economy has shrunk by 10%, losing about $5 billion due to this pandemic (Biswas et al., 2021, p.2). The lack of finances has primarily affected access to materials needed for construction purposes. Overall, the shortage of materials is a crucial threat affecting Australia’s construction industry.
Problem Statement and Research Rationale
Problem Statement
The COVID-19 pandemic has generated challenges for contactors in Australia who can either not acquire or move materials from one location to another. Before the wake of the pandemic, these professionals had an easy and efficient time handling projects due to the accessibility of the required materials. For example, prices were relatively lower, and this translated to increased access and purchase. Also, transportation was efficient until the pandemic halted operations due to restrictions of people’s movement in and out of their countries. After the pandemic, supply chain-related challenges emerged, making it hard for Australia to source materials from China and Indonesia (Ogunussi et al., 2020, p.122). One of the critical areas that Australian contractors sourced materials from is China. As Warren et al. (2020), Australia imports most of its construction materials from China. The ban on travel movements is expected to hurt supply chain-related processes. Thus, Australia is likely to encounter challenges with the flow of materials required in handling construction initiatives. Also, increased financial hardships mean a limited capacity to access these products.
The pandemic has generated supply chain and financial issues for the Australian economy. The widespread limitations experienced in the supply chain sector globally are greatly expected to affect construction projects in this country. Even though research shows a rise in construction and building work done during the pandemic, some projects will undoubtedly experience shortage limitations (Australian Bureau of Statistics, 2021). The study shows that the total construction work done increased by 2.4%, while the building one rose by 2.5% (Australian Bureau of Statistics, 2021). However, one of the critical challenges that contractors and other personnel are experiencing is the high cost of construction materials. The price of materials is a key factor behind the shortage and closure of some of these projects. As Bailey et al. (2020) reveal, the prices rose by 70% from 2019 to 2020. This meant that contractors could not meet the financial obligation associated with purchasing essential equipment and supplies. Previous research has paid attention to the social distancing challenges amidst demand for continued operations but failed to delve into the pandemic’s impact on creating a shortage of construction materials. Thus, Australia’s deficiency of construction materials can be linked to supply chain-related issues and financial recession.
Rationale
The research focuses on analyzing the situation of the construction sector in Australia in the COVID-19 pandemic era. Since the virus paves its way into this country, the construction area has continued to affect supply chain operations globally. This has posed a challenge to a nation like Australia that is keen on its construction and developmental initiatives. The government has undertaken different strategic actions to protect and safeguard its people. For example, lockdown is one of the conditions that the government has placed to limit the disease’s spread. Due to reduced movements in and out of a nation, growth and productivity are often hampered because there is a reduced flow of ideas, products, and services. As the study shows, pandemics are expected to have a severe negative impact on economic activities, especially in the short term (Brodeur et al., 2020, p.6). This generates economic losses across various nations exposed to a healthcare pandemic. Thus, supply chain disruptions and financial challenges exist as crucial aspects that can challenge the shortage of access to raw materials in Australia. The rationale for the research is to assess the impact that the COVID-19 pandemic has on the Australian construction sector and primarily on creating a shortage of required materials. The focus will be on supply chain disruptions and financial recession attributed to economic hardships. This is one of the areas that attract a significant share of Australia’s economic growth and productivity. The shortage of materials could threaten the nation’s progressive growth and development. This research will reveal the loopholes that create a shortage of construction materials and open opportunities for making crucial decisions. The research outcome informs stakeholders about steps that they can take to ensure that the Australian economy can access construction products amidst the pandemic. The results obtained from this report will verify what other researchers have found out about the topic and lay the foundation for future research focusing on the effect that a pandemic can have on a nation’s construction domain.
Aims, Objectives, and Research Questions
The central aim behind this research is to assess the impact that COVID-19 has had on the shortage of construction materials in Australia. It opens further research focusing on suitable mechanisms that Australia’s construction stakeholders should undertake to ensure a steady flow of materials even as the pandemic progresses. These are the objectives that the research focuses on;
- To examine if the COVID-19 pandemic has affected access to construction materials in Australia.
- To assess if the pandemic has generated supply chain disruptions globally.
- To evaluate how the COVID-19 pandemic has led to financial recession and consequently affecting access to construction materials.
These are the research questions that will guide the research process;
Overarching Question: How has the COVID-19 pandemic contributed to supply chain disruptions globally?
- How has the COVID-19 pandemic affected access to materials for use in the construction sector in Australia?
- How has the COVID-19 pandemic affected financial status and ability to purchase construction materials in Australia?
These are the strategic question and objectives that the research process will seek to address. They revolve around aspects that have affected the building and construction sector in Australia. For example, understanding the various limitations that have affected access to construction material in Australia will allow the researcher to provide an effective conclusion. These outcomes will also highlight key gaps that future researchers can focus on to provide sufficient answers to prevalent issues. One of the opportunities that the outcome will present is development of proactive measures that can limit such shortage in the future.
Research Limitations
The research process had various limitations that pose a crucial threat to achieving the targeted goals and objectives. One of the challenges experienced was hardships accessing viable information and credible secondary data sources. This is a relatively new research area in the academic field. Acquiring substantial and credible sources was a major challenge because it is an area that has not been fully analyzed by potential researchers. COVID-19 is a new area of study, and most researchers have not examined its impact on a wide range of areas, and especially on the construction industry. Thus, it was hard to find and accessing quality research papers that have analyzed this topic. Also, the acquired secondary data did not specifically answer the research questions. The obtained sources examined different research questions that the research at hand. Even though they provides a significant foundation, they did not meet the researcher’s specific targets. This was a crucial challenge because of the lack of correlation between the secondary research outcomes and the specific research questions that this study has regarding the impact of COVID-19 on shortage of construction materials. Lastly, the other main limitation was time where the data gathering process attracted a lot of time. Finding sources targeting the Australian population was a key challenge where this affected the development of a viable literature review segment.
Literature Review
Introduction
COVID-19 pandemic is a healthcare threat that has halted operations in the construction industry in Australia. It has continued to expose nations to derailed growth and development. Majumder and Debasish (2021, p.117) note that the impact of the COVID-19 pandemic has a poor impact on the supply of materials, project delivery, and cost components of associated construction projects globally. For example, contractors relying on Chinese-made construction materials have faced a shortage of materials due to supply chain disruptions and financial challenges. For instance, supply chain-related complications have affected some of these projects. Baily et al. (2020) argue that in the year 2020, Australia had the lowest number of construction projects started and completed fully. This is contrary to the statistics relayed by the Australian Bureau of Statistics (ABC). According to their research, Australia had experienced a positive outcome in the industry, with total construction work increasing by 2.4% and building work advancing by 2.5% (Australian Bureau of Statistics, 2021). Their research findings indicate that the pandemic has generated optimism in this sector amidst the different challenges that have been prevalent in accessing raw materials. The pandemic has attracted strategic actions like lockdown and social distancing to limit the spread of the virus. Construction projects continue to face limitations due to a lack of access to raw materials. Australia accessed these materials from China and Indonesia. Ogunussi et al. (2020) believe that lockdown has made it impossible for construction projects established in Australia to obtain sufficient materials. Research shows Australians cannot access materials due to the lockdown (Ogunnusi et al., 2020, p.121). Limited movements out of critical markets that import construction equipment and plants have primarily created a shortage of materials for this primary sector. Being one of the nations that heavily relies on construction materials from China, Australia is expected to face a shortage of raw materials due to the high prices of materials. O’Sullivan, Rahamathulla, and Pawar (2020, p.135) believe that Australia has been experiencing reduced economic progress and development due to the pandemic. This indicates that the nation is experiencing economic challenges that have left minimal resources to invest in this key industry. Lastly, construction initiatives have witnessed reduced cash flows due to the limited operations in the pandemic era. For instance, Biswas et al. (2021, p.3) argue that Australia has lost approximately $5 billion in the construction domain due to the COVID-19 pandemic. This is a significant loss of resource base that would have offered a crucial foundation for this sector. Overall, supply chain disruptions and financial distress are vital factors that might generate a shortage of construction materials in Australia amidst the pandemic.
Supply Chain Disruptions
The global construction sector has been primarily affected since the emergence of the Corona pandemic. According to Zamani et al. (2021, p.5), projects have been suspended due to critical delays associated with delivering essential construction supplies. Logistics has been a major cause of challenges experienced in this vital sector. Australia exists as one of the global nations that have heavily invested in the construction industry. With the pandemic’s numerous supply chain challenges, this country is expected to experience disruptions. For instance, Australia targets China and Indonesia to acquire construction tools and equipment (Ogunussi et al. 2020). This country has been unable to access construction equipment, goods, and plants due to the lockdown directive (Ogunnusi et al., 2020, p.122). Building and construction projects thrive with sufficient delivery of key materials and other associated products. However, since the pandemic started, it has continued to experience shortfalls emerging from poor or lack of access to these essential products. Its significant suppliers have not been able to relay these materials due to the restrictions created and implemented to reduce the spread of the virus and save people’s lives. China has remained inaccessible, making it hard for potential buyers to export materials required in the construction industry (Warren et al., 2020). Due to the rapid spread of the disease, various nations have adopted the lockdown tactic to restrict movement in and outside their jurisdictional areas. As the pandemic continued to spread, the Australian government introduced lockdown and border controls (Infrastructure Australia, 2020, p.4). With these changes, the various activities that surround the construction sector were expected to be adversely affected. For example, people stood to experienced challenges moving and consuming products. This changes the patterns of infrastructure use (Infrastructure Australia, 2020, p.4). Since the pandemic started, the sector has faced a shortage of material supply (Gamil and Alhagar, 2020, p.123). Most countries have adopted measures that have seen a reduction in the movement of people and materials from one location to another. In Australia, the lockdown strategy has made it impossible for individuals to move across various global destinations in search of construction equipment. Also, countries such as China and Indonesia have always been on the frontline to supply Australia with construction materials. However, their decision to adopt safety measures has limited the delivery of construction products to Australia. Thus, one of the threats that the COVID-19 pandemic has generated is the shortage of construction materials due to the lockdown directive.
The lockdown directive imposed on the Australian community has affected contractors and subcontractors’ handling of operations on the ground due to a shortage of materials. Those who made their way into a segment like China to assess and purchase materials cannot do so because Australia has closed its borders for outside movements. It is deemed the most successful developed state in slowing the spread of the COVID-19 virus (O’Sullivan, Rahamathulla, and Pawar, 2020, p.135). It undertook crucial national response strategies that accelerated effectiveness in handling the issue but pose a challenge to key sectors like building and construction, unlike in the past, where Australia sourced materials from China, the pandemic limited importation (Warren et al., 2020). Thus, it has been handling a shortage of materials that could affect the completion of key projects. Due to the time and resource limitations, if a project experiences construction materials provision limitations, there is a high chance that these projects might halt their operations or close down. This could have a significant effect on government-based projects that call for resource accountability. Thus, the COVID-19 pandemic is a threat to construction projects due to hardships experienced in accessing materials and subsequent shortages.
According to Jones Day (2020, p.2), disruption in supply chains is a state that delays or even forces some of the projects to pause. When the project personnel has no materials for use, the project cycle is primarily affected. As Zamani et al. (2021, p.5) reveal, logistical issues are one of the pandemic’s major problems in the construction industry. Contractors are not in a position to ensure that materials arrive on-site due to logistical issues. First, the lockdown has affected transportation which means that products do not reach the targeted destination at the right time. Research shows that due to the disruptive events brought about by the COVID-19 pandemic, material shortages and delivery delays are witnessed across different global segments (Kumar et al., 2020, p.2). This has continued to generate reduced service levels and process productivity. For example, at the ports, all containers have to undergo a thorough screening and sanitization process to reduce the chances of potential movement of the virus. Delays emerged from a lack of innovative and resilient shopping mechanisms (Notteboom, Pallis, and Rodrigue, 2021). This leads to delays in sending and receiving containers. Thus, contractors and other professionals do not receive materials at the projected time. In line with the project plan they have at hand, this becomes a key barrier due to the delayed project milestones. The absence of building materials means that the project activities fail to commence at the planned time. This evidences a situation of a material shortage brought about by logistic problems either in the importing or exporting country. Also, financial issues exist as another reason behind the delays witnessed in the dispatch and reception of the expected construction goods. Late payments have affected logistical processes (Zamani et al., 2021, p.6). For example, when a company makes a late payment for construction materials, there is a higher chance that these items will not arrive at the expected time. Increased delay causes a rise in the shortage of materials and lowers the project’s progress. Thus, logistical limitations have posed a vital challenge to the industry because of the shortage of construction plants, equipment, and other essential products. COVID-19 has created a shortage of construction raw materials due to insufficient supply chain cycles. When materials fail to reach the destination, construction projects do not achieve the targeted milestones and objectives.
Financial Stressors
Resource limitation has become a key factor behind the increasing shortage of construction materials globally. Biswas et al. (2021) believe that the economic crisis generated by the virus has hit construction projects internationally. Most governments are spending massive resources in the fight against the pandemic leaving limited resources invested in the construction industry. Statistics show that Australia’s economy has shrunk by 10% (Biswas et al., 2021, p.3). This translates to reduced financial capacity at the government’s disposal for use in construction-based initiatives and processes. Limited cash flows, revenue, and profits diminish the access to other raw materials needed in various construction projects. Thus, this has been a critical barrier towards accessing sufficient materials for use in construction projects. For example, if a business person has various projects that earn them income that they use to venture into the construction sector, stalled operations due to economic hardships created by the pandemic could affect one’s cash flow. Thus, there is a limited chance of gathering enough resources for the purchase of materials. This leads to a shortage of required materials because the resources at an investor’s disposal are inadequate to meet all the needs.
Increased project costs have accelerated the shortage of construction goods (Zamami et al., 2020, p.7). The high price of materials has affected the ability and capacity of Australian contractors to purchase them. Since the wake of the pandemic, the prices of key essential products have surged. This is the case of the building and construction domain that has been left to bear an enormous financial burden. The rise of the foreign exchange rates and the increased demand for these products has led to the high price of materials (Zamami et al., 2020). For example, when the exchange rates hike, the cost of products and services accelerates. This makes it hard for contractors to purchase materials due to high costs and limited resources at their disposal. This is a crucial risk as most projects will stall or close down because contractors have reduced financial capacity to sustain these projects. Even as the pandemic remains uncertain, there is a dire need for stakeholders in this industry to find a way forward. The future of this sector will depend on the strategic actions undertaken because they will enable leaders to develop proactive solutions when faced with a similar challenge. Thus, financial challenges might be one of the critical factors that have exposed Australia to the shortage of materials needed in construction-based projects.
Summary
Undoubtedly, the shortage of materials for the construction domain is linked to a lack of access to essential products due to supply chain disruptions and financial limitations. For example, Australia targets China and Indonesia as its key market segments for materials needed in construction and building projects (Ogunussi et al. 2020). This means that any strategy that these countries initiated to control the spread of the virus can adversely affect Australia’s construction industry. For instance, China has closed its borders which meant that if Australia desired to purchase construction items, they would experience numerous hurdles. As Gamil and Alhagar (2020, p.123) highlight, the pandemic has created a shortage of materials supply. These projects have either ceased to progress or witnessed reduced activities as the professionals working on these sites have no materials for use. Constructions attract specific time and resource investments. If materials fail to reach the destination at the right time, this can extensively affect the start and completion of the projects. Nagaraju and Reddy (2012, p.660) reveal that projects are time and resource-bound. Any shortfall experienced in each of these areas might pose a significant threat to a construction project. The pandemic has hampered the access and provision of desired construction materials globally. This is a result of challenges experienced in supply chain processes and financial hurdles. The outcome is massive shortages of vital equipment, plants, and items needed to commence and complete various building projects. Even though Australia has made significant strides in handling the COVID-19 menace, it has continued to experience challenges accessing construction materials (O’Sullivan, Rahamathulla, and Pawar, 2020, p.135). However, this has not deterred the significant growth experienced in this sector. According to the Australian Bureau of Statistics (2021), the nation has experienced an increase by 3.0% to 30.4b in the value of total building work. These statistics show that Australia has maintained a positive trend in the growth and development of this domain amidst the vast spread of the virus. However, other nations have not achieved similar outcomes and thus continue to strengthen their preventive strategies. For example, China is the origin of this deadly virus. As Shereen et al. (2020) state, it emerged from Wuhan, China, and spread to other regions. Once a hotbed, nations interested in doing business with China avoided visiting it due to the fear and anxiety associated with the disease. Thus, even though Australia managed to handle this threat promptly and sufficiently, it would not have commenced dealing with China. While it remains its main supplier of construction materials, the latter could experience issues in accessing construction products due to resource limitations (Warren et al., 2020). This might pose a crucial challenge to the delivery of projects due to supply chain disruptions and financial hardships. Overall, the literature review offers an analysis of what other researchers have found out regarding the effect of the pandemic on the shortage of construction materials, specifically in Australia. It lays the foundation for answering the research questions and opening further research opportunities in the future.
Research Methodology
Introduction to Methodology
Research methodology entails the path that researcher will use to facilitate their research. It is the scientific approach adopted for conducting research (Mishra and Alok, 2017, p.1). It entails the techniques used to identify, select, and analyze data and information about a particular topic of interest. This research project will focus on evaluating the shortage of construction materials in Australia, due to the COVID-19 pandemic. The researcher will rely on rely on qualitative secondary data. The central aim will be gathering descriptive information surrounding past research on the shortage of construction items and equipment in the Australian community. Past research papers from other investigators who have analyzed this topic will act as the foundation of this essential project. These will encompass both case studies and literature review papers. Even though this is a new research area, there is a high chance of accessing a significant range of credible and authentic papers discussing this topic. Previous research outcomes will be used to answer the study questions at hand depending on the conclusions that other researchers made on the same topic.
Methodology
The major focus will be on qualitative research papers where case studies and literature review papers will form the foundation for this research. The researcher will gather a set of cases observed in real situation to frame to the audience the extent to which the pandemic has led to shortage of materials needed for construction projects in Australia. Notably, literature review papers based on qualitative research processes will be utilized in this research.
Use of Case Studies
One of the secondary research data sources applied in this research are the case studies. This will entail analysis of research papers focusing on the Australian building and construction industry. Specifically, these papers will target real-life situations that allow the readers to assess to understand if the pandemic has led to material shortage. Previous research on the impact of the pandemic on the construction sector, and primarily in Australia, will act as the foundation of this paper. The study will delve into qualitative data sources obtained from these case studies. For example, the Australian Bureau of Statistics is a written survey report that will enable the researcher to collect valuable data on Australia’s construction domain progress amid the pandemic. Case studies will guarantee acquisition of credible and quality information. Also, the preference of the secondary methodology is due to its times saving aspect, offers resources for primary research design, and credibility. Another key advantage behind the use of case studies is due to its provision of first-hand information. Since these case studies address actual studies, the researcher is better positioned to acquire first-hand information about a similar topic.
The use of Literature Reviews
In-depth literature reviews will also be used to obtain significant data and information on the topic. The researcher will select various research papers that analyze the issue of the impact of the COVID-19 pandemic in the construction sector. It will pay attention to the Australian context. However, some of these literature review papers will examine the overview of key market dealers that have continued to supply Australia with different construction projects. For example, research papers covering China and Indonesia as segments that offer Australia with building products will also enable the researcher to understand the status of material shortage. Thus, literature review will offer important data and information that the researcher can integrate in this research to assess how the pandemic has affected Australia’s construction domain. It also offers convenience, accessibility, time, and cost-saving.
Overall, the rationale behind the use this secondary research option is due to its cost-effectiveness. The researcher will acquire important data on Australia’s construction sector during the pandemic from selected case studies. It will also help a researcher save and deal with budgetary constraints (Cacciattolo, 2015, p.3). Compared to primary research, secondary data gives the researcher a point of resource use efficacy. For example, if the investigator seeks to undertake primary research, it would attract massive resources. This is because the data collection process would attract online platform usage. This can accelerate the cost of research. However, secondary data will offer the researcher resource savings. Since the researcher builds on another person’s data, there is no need to invest too much money into the process.
Data Sources
Journal articles, credible news articles and, book sources will be the strategic secondary data sources that the researcher will focus on to collect vast information revolving around the impact of the COVID-19 pandemic on the Australian construction industry. In-depth evaluation of these sources will be undertaken to ensure that they are authentic, credible, authoritative and informative. Also, the researcher will ensure that they are up-to-date to represent the pandemic setting. These will make up the case studies and literature review methodology providing qualitative information about the topic. Even though this is a new research area with no massive information, it will act as a key foundation for the research. COVID-19 is a new topic in the academic field, and most researchers are yet to venture into this area. The sources will be up-to-date since the research topic revolves around a contemporary issue. Despite it being a relatively new topic in the academic domain, it has received significant attention from different researchers. There is an opportunity to find credible and authoritative sources that will answer the research questions.
Summary
The data collection process will integrate secondary data sources acquired from case studies and literature reviews. Due to the need to save time and cost, this is a central approach that the research will use to collect crucial information. Also, in line with the social distancing directive, primary research is an inappropriate data collection strategy. Having in mind these aspects, the research should focus on secondary data. The research will aim at integrating qualitative secondary data sources to examine how the pandemic has led to the shortage of construction materials in Australia. The central elements are the lack of access to these materials due to supply chain disruptions and financial stressors. These aspects integrate qualitative data sources to assess the financial outcome of the pandemic and people’s perception and attitude towards lack of access to required construction materials and failure to reach the construction ground.
Conclusion
The literature review segment shows that Australia’s reliance on materials from other countries might pose as one of the challenges that affect their construction projects during pandemics. Due to the associated supply chain challenges experienced when a pandemic stalls operations across various nations, Australia is likely to also encounter hardships accessing construction materials. Even though research shows that the sector has progressed during the pandemic era, most researchers feel that the sector has been exposed to various problems that have affected supply of crucial construction materials. The major aim of this research is to carry out a methodology that will assess if there has been a shortage of construction materials in Australia and the steps that the government can take in the future to avoid similar adverse outcomes.
References
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