For mid-sized businesses in the construction and building sectors, the last year has brought a quiet, creeping challenge: the pipeline of future work is shrinking and fast. At Strategic Specialists Group, we’re seeing this concern crop up in nearly every client conversation. It’s not just a temporary lull. Structural shifts in the market, policy, and industry confidence are creating conditions where securing forward work is more difficult than ever.
So why is this happening now, and what can you do about it?
The Development Pause and Its Domino Effect
One of the biggest culprits is the stalling of new developments. According to The Urban Developer, “supply pipelines have thinned considerably,” especially across residential construction, as developers pause or cancel projects due to rising costs and market uncertainty.
Many developers are waiting for material and labour costs to stabilise before committing to new builds. This standstill at the top of the chain is starving downstream contractors and trades of future opportunities. Where businesses once had 6–12 months of work locked in, many are now facing just weeks of confirmed projects.
Cost Blowouts and Margin Squeeze
Rising input costs have been a persistent issue, but now the squeeze is tightening on both ends. With tendering more competitive than ever, many businesses are bidding low to stay in the game — sacrificing margins in the hope of maintaining cash flow.
The Australian Financial Review highlights that inflation in building materials and labour hasn’t been matched by increases in what clients are willing (or able) to pay. The result? More risk for builders, less appetite for risk from developers, and fewer viable projects coming to market.
Government Work Slowing Down
While government infrastructure spending has been touted as a buffer to commercial slowdowns, in practice, many mid-sized builders are finding these tenders harder to win. Projects are fewer, requirements are tighter, and large-scale firms are dominating the space. Additionally, delays in project approvals and budget reallocations have meant that some of the promised public sector activity is yet to materialise — or has been delayed indefinitely. (Source: A News)
Skills Shortage and Capacity Strain
Paradoxically, even with fewer tenders, many construction businesses still face acute labour shortages. The industry continues to be affected by a lack of skilled workers, increasing the cost and complexity of delivering existing projects. A reduced capacity to deliver work even if it’s available can lead to reputational damage, financial penalties, and an inability to pursue new opportunities with confidence.
Strategy Drift and Business Model Fatigue
Beyond external pressures, many construction businesses are relying on outdated growth strategies, often reactive and reliant on referrals or repeat clients. As the market shifts, firms that haven’t adapted their business development models are finding themselves with empty pipelines. We’ve observed this firsthand: businesses that once thrived on organic growth are now struggling because their tendering, positioning, and commercial strategies haven’t evolved.
So What Can You Do?
This is where proactive strategy becomes critical. At Strategic Specialists, we help construction leaders:
- Map their ideal client and project types, not just take what comes
- Build a consistent lead generation engine, not rely on word of mouth
- Improve tendering success, by sharpening your unique value proposition
- Diversify revenue streams, reducing reliance on one sector or client type
We’ve gone deeper into these ideas in the workshops we run with construction leaders every week. It’s not just about surviving the current downturn, it’s about reshaping your approach for long-term resilience.
Let’s Talk About Your Business
If your forward pipeline looks uncertain, you're not alone but you also don't have to wait for the market to fix itself.
Book a no-obligation, no strings attached 30-minute call with one of our specialists, and let’s explore what’s next for your business.
