Millions of dollars of it is going to waste, while many can’t get their hands on it. This startup hopes circular is the answer to supply chain woes

Pandemic-related and conflict-spurred international supply chain issues have left Australia with the worst timber and steel shortage in four decades. 

Yet millions of dollars worth of materials are lying unused in building sites and yards across the country. 

Ritchie Djamhur, the founder of circular economy startup Superyard, hopes that his new marketplace can connect the dots and find the solution. 

Not just a “Gumtree for construction”, the website hopes to make the task of capture and digitalisation of stock simpler for businesses and be a new way to connect buyers and sellers, reduce waste, and unlock stock. 

The goal is to reduce costs and create a sustainable circular economy to boost the construction and manufacturing industries.

Djamhur, who is also chief operating officer of Zoomwave Constructions, says that many materials used in the process of completing a civil or commercial project can be used again, but instead remain locked away in storage containers. 

Oftentimes, when there is excess stock for a project or if a project fails, construction businesses will “hoard” these unused materials. 

There’s no specific statistics to say what the value of idle stock is, but Djamhur says it’s in the millions. Anecdotally, he’s aware of massive yards full of scaffolding and construction materials that never got used. 

“Hoarding of materials is common practice.” 

“A lot of companies rent sheds just to keep stock in their sheds, because they don’t know what to do about it. [Until now,] there was no proper platform to expose it to our community, specific to construction.” 

“Unless you have a strong network of your own to reach out to, your only solution is to buy new or use a broker. I wanted to disrupt that process and bring the construction community together to share materials that could find a new home and make it fast, easy and inexpensive.” 

“I want to help businesses survive during these times of shortages, unlock cash flow, and reduce cost of procurement.” 

Reports over the past year stated that Australia has been suffering the worst timber and steel shortage in four decades. 

The price of iron ore has increased significantly in recent years, driven by a combination of factors including a Russian timber shortage, the impact of the pandemic on Brazilian iron ore production, and the closure of the Beijing steel and iron factories, among other factors. Global shipping, trade and production disruptions have also had a significant impact.

• Half of Australia’s LVL timber comes from Russia – who knew, and what it means for construction

The World Steel Association (Worldsteel) forecasts that steel demand will grow by 0.4 per cent in 2022 to reach 1840.2 tonnes (subject to high uncertainty).

Commenting on the outlook, Worldsteel economics committee chairman Máximo Vedoya says: “For 2022 and 2023, the outlook is highly uncertain. The expectation of a continued and stable recovery from the pandemic has been shaken by the war in Ukraine and rising inflation.”

The Superyard platform launched on 8 August and already some large players have signed up, including Wesfarmers-owned industrial equipment supplier Bullivants, and global construction manufacturer PERI Group. 

“This is a huge development because large suppliers are usually very protective of their stock levels and pricing. It really shows how the industry is evolving as it addresses the current challenges,” Djamhur says. 

Managing director of PERI Australia, Yannick Lelievre, says: “We’re pleased to encourage the redistribution of material through Superyard to minimise waste and support the circular construction economy.”

Djamhur hopes more will soon follow. 

“I want to create a thriving sustainable community of businesses of all sizes to share materials and move the industry further. 

“Industry is already thinking about sustainability with fuel use and water. But the area that’s not being addressed is material waste. From my experience, there’s a genuine need to progress the industry to be mindful of resource use. One way to do this is through a circular economy solution.” 

“Superyard is a service, not an opportunist.”