As Australia’s housing crisis worsens amid a critical shortage of labour and rising costs, experts are warning that major construction companies are increasingly at risk of becoming “zombie companies”.
New data from KPMG Australia reveals that the number of ASX-listed zombies has spiked by 31 per cent in just six months, climbing from 94 in May to 122 companies.
Gayle Dickerson, KPMG’s head of turnaround and restructuring, said that while there was a strong demand for housing, builders were being squeezed by soaring costs and lack of available labour.
“It means that there are less builders to meet any demand for new housing stock,” she said.