The HIA Trades Report for the March Quarter 2013 has detailed an industry facing difficult headwinds in the coming years.

The quarterly report surveys builders and sub-contractors, and concluded that there is a relatively high availability of skills in the industry.

"Skilled trades people continue to operate in weak conditions - residential construction experienced declining activity in 2012 and while there are signs of a recovery in 2013, it is from a very low starting point," said HIA Economist, Diwa Hopkins.

"An adequate provision of skilled labour will be a crucial ingredient to a recovery in new home building that is of the magnitude required by Australia's longer term housing needs.

"A prolonged period of inadequate residential construction activity is not conducive to attracting new skilled labour into the industry, and this may undermine the longer term capacity of the industry to meet recovering demand. Improved support now for training will play an important role in mitigating this risk.”