FROM NZCB —
Grant Florence Chief Executive
What a year! In 2030, I am sure we’ll look back into the distant past to the year 2020 and recall it as one that stood out for its turmoil and uncertainty compared to other years. When I look back to when COVID-19 hit our shores in February/March and we entered living within the Alert Level framework, we were understandably concerned about the impact the pandemic would have on the future pipeline of building work. I clearly remember having a number of discussions and thinking that the industry would be able to continue for the next few months, working through the existing workload, but that the fourth quarter of 2020 would bring some challenges in terms of the demand for building work. ‘Oh, how we were wrong’.
Dominated by the COVID-19 pandemic and the raft of outcomes from this virus, we also saw a general election, that for many years did not result in a formal coalition being formed. We also witnessed interesting political events in many countries around the globe including the USA. Apart from COVID-19, what stood out to me was how the demand for building defied all the best projections from the economic commentator community and has indeed remained very buoyant. In addition, all projections are that this buoyancy will continue for at least the next two to three quarters.
Projections and feedback from the industry are that job pipelines are still very strong heading into 2021.
Projections and feedback from the industry are that job pipelines are still very strong heading into 2021. We are starting to see some of the effects of COVID-19 and high construction demand with shortages of building material and again the topic of skilled labour. But I suspect this will be something we may have to live with for the next few months as international shipping routes remain under pressure impacting on the availability of imported building materials.
New Government The Labour Party was re-elected into office during the year for its second consecutive term and with this the appointment of a new Minister of Building and Construction – Hon Poto Williams. Although it is too early to ascertain the direction the Minister is looking to take the building and construction sector, we can be fairly certain that some of the initiatives that have been launched in the last three years will continue. This includes building for climate change, investment in social housing, and seeking diversity in the sector. No doubt there will also continue to be a range of regulatory changes as well. As with all new Ministers of Building and Construction, the Association is looking to start engagement with the Minister as early as possible to provide support, and outline the key policy issues we believe require attention to improve the industry. In ending this year, I wish all members of NZCB and your families a joyful Christmas and a safe New Year. I encourage you to take a break over this holiday period and recharge your batteries ready to overcome any challenges 2021 may bring. ‘Till next time...
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