Middle East conflict drives electrical equipment costs sharply higher

New Australian Bureau of Statistics data demonstrates the growing pressure that international supply disruptions are placing on electrical contractors, building projects and Australia’s housing and infrastructure pipeline.

Input prices to house construction increased by 3.8 per cent over the year to June 2026 and by 2.1 per cent during the June quarter. Electrical equipment prices increased by 12.1 per cent over the year and by 7.4 per cent during the quarter, with electric cable and conduit prices increasing by 11.2 per cent in three months.

National Electrical and Communications Association Chief Executive Officer Stewart Joyce said the figures showed that electrical contractors were facing some of the most significant cost increases anywhere in the construction supply chain.

“The sharp increase in electrical equipment costs is not a marginal issue. It directly affects project viability, contractor cash flow, housing affordability and the timely delivery of essential infrastructure,” Mr Joyce said.

“Electrical contractors operating under fixed price contracts cannot reasonably be expected to absorb sudden double digit increases in cables, conduits and other essential equipment. These pressures are particularly serious for small and medium electrical contracting businesses, which often have limited capacity to renegotiate prices imposed further up the contracting chain.”

The ABS has linked the June quarter increase to higher fuel and freight costs, shipping delays and increased copper and PVC prices associated with the Middle East conflict and disruption to international supply routes.

“NECA is working closely and constructively with the Australian Government and relevant state and territory governments to provide current industry intelligence, identify emerging supply risks and ensure every practical option is considered,” Mr Joyce said.

“We acknowledge the steps already taken by governments to support fuel security and maintain critical supply chains. NECA will continue working with government to ensure measures are properly targeted, accessible to electrical contractors and capable of supporting the uninterrupted delivery of essential electrical and communications work.”

NECA is also seeking formal and consistent recognition of electrical contracting businesses as essential businesses and essential service providers for the purposes of emergency management, business continuity, movement, fuel allocation and critical supply arrangements.

“Electrical contractors install, maintain and restore the systems that support hospitals, electricity

networks, communications, water infrastructure, transport, data centres, emergency facilities,

homes and businesses,” Mr Joyce said.

“Any response that fails to recognise electrical contractors as essential risks leaving critical

infrastructure without the skilled workforce required to keep it safe and operational.”

NECA is calling for continued supply chain monitoring, improved access to compliant alternative

products, support for competitive domestic manufacturing, fair contractual treatment of unforeseen

material increases and clear priority arrangements for contractors undertaking critical work.

“Government and industry must work together to protect essential services, maintain construction

activity and ensure that otherwise viable electrical contracting businesses are not placed at risk by

cost increases and supply disruptions that are entirely beyond their control,” Mr Joyce said.