Construction Sector Outlook: What the NAB Business Survey Means for Construction Trades Right Now

Every quarter, NAB releases a business survey that shows how different industries are doing. It’s like a health check for the economy. For small businesses in construction (including custom home builders and trades like plumbing, electrical work, HVAC, and landscaping), this survey gives hints about what might happen next. It helps business owners notice problems early and spot new opportunities. That’s why Tenfold Business Coaching uses this data to help guide their plans and support clients to stay on track.

What the Chart Says: Business Conditions and Confidence

On page 2 of the NAB Quarterly Business Survey from June 2025, there is a chart that shows two things: ‘Business Conditions and Confidence’. It helps us understand how businesses feel and how well they are actually doing.

Currently, the conditions have fallen to their lowest point since late 2020. This means that businesses are not doing well at the moment. Confidence has gone up a little bit, but it is still below the average level.

This situation of low performance but cautious hope is important to notice. It shows that while things are difficult for businesses, there is still some hope for the future. Businesses are facing tough times now, but they are also feeling a little more optimistic than before.

Key Insights from the Survey in Plain English

Business conditions worsened again this quarter. Many businesses are finding it harder to make money, hire staff, and keep everything running smoothly. Profits stayed negative. Trading conditions and employment both went down. In construction, the situation is mixed. Confidence in construction increased, which is a positive sign. But the actual conditions in construction services and residential building are still poor.

Forward orders, which are jobs booked for the future, have improved a little. This is a sign that demand may be increasing. Capital spending plans, or plans to invest money in businesses, also went up. This shows some businesses are planning to spend more. But, the amount of work that businesses are doing now, called capacity utilisation, has dropped. This means many companies are not working at full capacity and might have some spare space or time.

Labour shortages are becoming less common, but they are still a problem. Fewer businesses say labour shortages are a major issue now. However, it hasn’t totally gone away. Wages are still the most important concern for most businesses. The second biggest concern is tight profit margins, which means it’s hard to make a good profit. Government policies also matter a lot to many businesses. Prices for things in stores are going up more slowly now. This could mean that some trades will face less pressure to keep costs low. Overall, the situation is easing but still needs attention.

What This Means for Builders and Trades Operators

If you are running a small construction business, this survey shows you are not alone. Many builders and tradespeople are having a hard time right now. They are dealing with fewer customers, smaller profits, and problems finding enough workers. But, there are signs that things are getting better. People are more confident about construction, and more orders are being made for future work. This means that clients are starting to plan new projects and get ready to build again.

Tenfold Business Coaching services help clients understand what is really happening in their business. For example, if future orders are going up but the amount of work they can do is going down, it is a sign that they should get ready for a busy time ahead. During this busy period, it is very important to find the right people to hire and to plan how to manage money. A business coach can help you see these signs early so you can take action. By understanding these signals, you can make smarter choices and be better prepared for what is coming.

Indicators to Watch: Opportunities and Risks

Watch the level of business confidence in the construction industry. If it continues to go up, it means more builders and tradespeople are feeling good about the future. When confidence is high, builders are more likely to hire more workers and spend money on new projects. This can lead to more job opportunities and encourage more building work across the country.

Keep an eye on forward orders. If these orders increase, it means there will be more work in the future. But if the capacity to handle orders stays low, it might show that businesses are having a hard time keeping up. This can be risky because it can cause delays in work and lead to staff feeling very tired or burned out.

It’s important to watch how orders change over time. When orders grow, it is a sign that the business might need more staff or resources soon. But if the capacity for work does not grow along with the orders, it could mean trouble. Businesses might not be able to finish work on time or deliver the service they promised.

Keep an eye on wage costs and profit margins. If wages go up faster than prices, your profits will get smaller. This is a sign that you should check your pricing and job costs. Tenfold Business Coaching can help you change your pricing plans to keep your profits safe. We give advice to help you run your business better and protect your earnings.

Look at the data for different parts of Australia. The conditions can be very different from one state to another. For example, Victoria and South Australia are still having some problems. On the other hand, Queensland is doing much better. If you work in more than one state, these differences are important to know.

Keep an eye on capex plans. If more businesses start investing money, it shows that they are feeling more confident. When businesses feel good about the future, they are more likely to start new projects. This can include building new places or upgrading existing ones. As a result, there might be more jobs for tradespeople and builders. Watching these plans can give you an idea of how the economy is going. It’s a sign that things might be getting better.

Five Actions to Take Now

Review Your Job Pipeline

Are the numbers of future orders increasing? If they are, it’s a good idea to start planning for labour and materials early. This way, you can make sure everything is ready when you need it. Planning early helps avoid problems and delays later on.

Check Your Pricing

With wages going up, it is important that your quotes cover all your costs. Make sure you include everything so you don’t lose money. Watch out for tight margins that can catch you out. If your costs increase, your quotes should reflect that. This way, you can keep your business running smoothly and avoid problems later.

Talk to Suppliers

If the capacity is lower than expected, there might be delays. These delays could affect your project timelines. To avoid problems, it’s important to build strong relationships with suppliers and partners. Make sure to lock in key materials early. Doing this can help you stay on track and prevent shortages that could slow down your work.

Look at Your Cash Flow

If the conditions are not strong enough, your cash flow, which is the money coming in and going out of your business, can have problems. This means you might not have enough money at times when you need it. A business coach can help you create a safety net. They can also help you make a plan for times when your business makes less money, which are called lean months.

Start Planning for Growth

Confidence is growing now. If you are ready to expand your business or project, this is the best time to do it. You should focus on building good systems that will help you run things smoothly. It is also important to train your staff so they know what to do when things change or when things go wrong. Taking these steps now will help you succeed in the future.

Prepare with Confidence

The NAB survey shows a mixed picture. Conditions are tough, but confidence is rising. For small construction businesses, this means being ready to move when demand picks up. It’s about watching the right indicators and acting early.

Tenfold Business Coaching uses these insights to help builders and trades make smart decisions. Whether it’s pricing, hiring or planning for growth, a business coach can guide you through the ups and downs.

Talk to an experienced business coach about how these insights can apply to your business.

FAQs for Construction Business Owners

What does “business conditions” mean in the NAB survey?

It’s a score based on trading, profitability and employment. A low score means businesses are struggling.

Why is confidence rising if conditions are weak?

Confidence is about the future. Some businesses believe things will improve, even if today is tough.

How does this affect residential builders?

Residential construction is still soft, but confidence is improving. That could mean more home builds in coming months.

Should I hire more staff now?

Only if your forward orders are growing. If not, focus on efficiency. A business coach can help you decide.

Is this a good time to invest in new equipment?

If your capex plans align with rising demand, yes. But check your cash flow first. Tenfold helps clients weigh these decisions carefully.