Message from the Chief Executive

Material and labour shortages: the way forward

The situation regarding inconsistent supply and price increases as mentioned in earlier editions of InHouse articles this year has now hit hard and is causing significant difficulties for all, including delays to build times and rising build costs.

Obviously, this is due to several factors, including record levels of residential building activity in New Zealand, inconsistent shipping (both international and domestic) due to COVID-19 and general price increases across all inputs (material and labour) into manufacturing and services. With building consents issued for May 2021 being 17% ahead of May 2020 and annual consents being close to an all-time level, the strong residential building activity will continue. Much of this is unfortunately beyond our control. However, over the next few months we will be providing our members with regular updates and tips on what can be done to help overcome some of these issues and also help offset the risks that arise to your businesses from this current situation. Hopefully, we will be able to also give you some forecast of when suppliers think material supply shortages will reduce. Of note, is that two of our large domestic building material manufacturers (GIB® and Pink Batts) have reported to me that at present they are able to supply on time, which is encouraging. It is interesting that a recent survey I read said that 84% of retailers reported they intended to lift prices and with this and the other price increases we are witnessing, it can only put a threat to inflation rates.

It was great to see a large attendance at our recent Annual AGM, Conference and Expo and from feedback and surveys to date, both attendees and suppliers found coming along to the conference of real value and had a clear intention to attend again in 2022. A quick thanks to our supplier partners who this year again supported our event with trade stands and sponsorship. Without your support we could not have a conference of this size and quality. Thank you again, it is much appreciated.

Till next time.