Tradies gear up for festive boom as construction softens nationwide

Australian tradies are gearing up for a busy end to the year, as homeowners rush to complete home improvements before Christmas.

New data from CommBank shows small business revenue typically spikes by about 10% in the final quarter of the year, with construction, electrical and plumbing trades leading the charge.

Homeowners focus on renovations ahead of Christmas

Builders, electricians, and plumbers are set to enjoy a surge in demand this festive season, as Australians prioritise long-postponed home upgrades.

Bec Warren (pictured), CommBank executive general manager of small business banking, said the data highlights how spending habits shift from leisure to lifestyle improvements as the year winds down.

“Small businesses in construction saw a 19 per cent revenue boost between October to December last year, while electricians and plumbers also experienced a busy Christmas-period with revenue up 16 per cent,” Warren said in a media release.

She noted that other consumer sectors, such as retail and hospitality, see more modest lifts.

“Accommodation, cafes and restaurants were only up 4.8% compared to the January-March 2025 period, perhaps signalling that the festive season continues well into the early months of the year,” Warren said.

Construction leads the states

CommBank’s analysis shows that project-driven sectors dominate festive-season spending across the states.

• Construction is king: Double-digit revenue gains were recorded in nearly every state last Christmas, led by Victoria (+21.4%) and Queensland (+20.3%), reflecting strong demand for renovations and building work.
• Utilities surge: Electricity, gas, and water revenue jumped 30% in Tasmania and Victoria, and 23% in the ACT, pointing to infrastructure and energy investment.
• Resources and finance strong: Western Australia (+13.2%) and South Australia (+14.5%) saw robust growth in resource-linked sectors, while property and financial services rose sharply in the Northern Territory and Tasmania.
• Retail steady: Retail and hospitality recorded moderate growth, with Victoria topping out at +10.1%. 

The festive uplift comes amid softer construction trends nationally. ABS data shows dwelling commencements fell 4.4% in the June 2025 quarter, with detached house starts down 6.4%. Despite the slowdown, more than 223,000 dwellings remain under construction – supporting ongoing demand for trades through next year.

Small business outlook: Managing peaks and troughs

CommBank data shows revenue typically softens in the first quarter of the year before rebounding from April onwards.

Warren said this highlights the importance of planning ahead.

“We recognise that for some small businesses, the benefits from recovering household spending may come slower than for others and we are here to support them in navigating those challenges,” she said.

“Small business owners who have been in the game for a while know that activity fluctuates throughout the year, so it’s about taking full advantage of the busier periods – perhaps by careful inventory planning, increasing marketing, and preparing for the quieter months.”

Tips for maximising festive-season revenue

CommBank recommends several practical strategies for small business owners looking to make the most of the final-quarter rush:

• Boost marketing: Increase visibility through social media, local ads and loyalty programs. Use CommBank Business Insights to track peak spending times.
• Plan inventory: Forecast demand and stock accordingly using cashflow tools in the CommBank app.
• Simplify payments: Offer easy checkout experiences and reliable POS systems to avoid downtime.
• Manage costs: Use CommBank Yello for Business to access discounts and automate processes with Smart Terminal solutions.
• Upskill during quieter months: CommBank’s Small Business Masterclass offers free lessons on cashflow, tech and AI to build resilience.

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