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Circular economy challenges loom large in construction industry

Faced with rapidly growing waste volumes, the construction industry is experimenting with design, installation and demolition methods to promote a circular materials loop.

XFrame's modular units are used to create interior commercial and retail fitouts. Supplied.

At a glance, the construction industry seems to have a strong handle on its waste, recycling 80% of the 29 million tonnes it produced in 2020–21.

But beneath these headline figures lies a bigger challenge — waste generation in the sector is soaring, with a 73% increase over the 15 years to 2021. Now, construction accounts for 38% of all waste generated by Australians, driven by both demolition and new-build projects.

Excess provisioning and a lack of circularity are significant contributors to this growing waste problem. Building site managers tend to over-order key materials to avoid shortages at the last minute.

Recycling volumes in demolitions can be limited by the need to bury hazardous materials, such as asbestos, in landfills, as well as a lack of material separation on new-build projects.