Australian businesses warn of supply chain & cost pressure
Tue, 13th Oct 2026 (Today)
Autodesk has released the Australian findings from its 2027 State of Design and Make report, which found supply chain fragility and cost control remain the leading concerns for local design and construction-related businesses.
The report draws on responses from 443 Australian business leaders as part of a global study of nearly 5,500 people across architecture, engineering, construction and operations, product design and manufacturing, and media and entertainment.
Among Australian respondents, 55 per cent said their supply chain was fragile because of geopolitical tensions, up from 47 per cent in 2025. The increase suggests concerns tied to global instability continue to weigh on local businesses.
Cost pressure also remained prominent, with 39 per cent of respondents naming cost control and cost management as the biggest challenge facing design and make organisations in Australia amid inflation and fluctuating raw material prices.
The data also pointed to a shift in the nature of business concerns. While supply chains and costs remained the top issues, the sharpest increases were in technology-related challenges, including artificial intelligence, automation and digitisation.
According to the findings, 33 per cent of Australian respondents cited technological advancements, including AI, as a challenge, up from 24 per cent in 2025. Concern about data automation and digitisation rose to 25 per cent from 18 per cent over the same period.
Digital skills
The survey suggests these pressures are colliding with a shortage of workers able to support digital change. In Australia, 35 per cent of businesses said a lack of skilled or trained workers was the biggest barrier to digital adoption, more than any other barrier measured in the study.
More specific obstacles also increased. A lack of knowledge or technical skills to implement digital solutions rose to 34 per cent from 27 per cent in 2025, while a lack of trust in available tools increased to 29 per cent from 24 per cent. A further 27 per cent pointed to limitations in current tools, up from 22 per cent.
That skills gap appears to be affecting investment priorities. Although 49 per cent of Australian businesses said they had made substantial progress in digital transformation, only 12 per cent said they prioritise or aggressively invest in it, down from 21 per cent in 2025.
Another 26 per cent said their organisation relies on technology but faces resistance, while 14 per cent said they were behind.
Dr Haren Sam, Regional Director for Australia and New Zealand at Autodesk, linked cost pressures and supply chain instability to broader operational challenges.
"Cost control continues to be a major concern for Australian businesses, exacerbated by supply chain instability. With volatility in raw material costs, it can be difficult for design and make businesses to accurately forecast the cost of a project," said Dr Haren Sam, Regional Director for Australia and New Zealand at Autodesk.
"Digital transformation can help organisations stay on track. However, the digital skills shortage may impact implementation, despite the positive outcomes digitisation can bring."
He said labour and skills shortages were also slowing digital progress in sectors that have long faced productivity concerns.
"A lack of digital skills, combined with ongoing labour shortages and limited capabilities, is impacting the digital transformation of Australian businesses in the design and make industries. This is likely affecting major projects in an industry that has long been trying to improve productivity rates," Sam said.
AI response
The report found businesses are responding to technological change in several ways, with AI moving further into day-to-day workflows. Forty per cent of Australian respondents said they were integrating AI into design workflows, while 36 per cent were investing in AI training and development.
Another 33 per cent said they were implementing AI-driven automation and improving data analytics.
Even so, more than half of organisations said they were struggling to put AI into practice. Some 52 per cent said they were still facing implementation difficulties, compared with 48 per cent who said they were approaching or had achieved their AI goals.
Dr Sam said the pace of change itself was becoming part of the problem for organisations trying to adapt.
"The pace at which artificial intelligence is advancing, coupled with a shortage of digital skills, is likely making it difficult for design and make organisations to feel they are keeping up," Sam said. "Organisations that once saw themselves as pacesetters in AI adoption are now feeling as though they are falling behind."
Despite that, the survey pointed to some confidence in data management. It found 68 per cent of respondents said their company had a trusted partner in data management and digital transformation, while 70 per cent said they had a dedicated person or team responsible for managing or centralising internal data.