Message from our Chief Executive

The impact and management of the Coronavirus pandemic continues to dominate our daily lives here in New Zealand. Despite attempts by many of us to try and work to a new world norm, this often is just not the case as the impacts of the virus continue to evolve in different shapes and places.

The building materials supply situation is a great example. If we cast our minds back to February 2020, who would have thought that we would be facing this complexity and daily disruption to our projects, especially the impact on global supply chains on imported building materials. I for one did not see this coming. COVID-19 has also had a significant impact on locally manufactured products. Manufacturers, many of who are Auckland based, have been faced with manufacturing plant closedowns that have delayed the supply of goods, some of which may take many months to recover. And this is on top of the skyrocketing demand they are seeing, due to record consent and building activity. Some are reporting increases of 30% on past record highs. From the view of many experts unfortunately this is not a short-term issue and an issue that will take many, many months before we get back to normality. The situation regarding vaccination for COVID-19 and employment conditions is a very rapid moving situation at present with the “legal and best practice ground” on this topic moving often and fast. I would encourage members to keep an eye out for the regular updates that are sent out by my team here at the New Zealand Certified Builders (NZCB) National Support Office (NSO).

Market Study into Residential Building Supplies

The Government has recently announced a Market Study by the Commerce Commission into Residential Building Supplies. The intention to commission this market study was signalled by the Government during the 2020 general election. The study follows on from the last market study into Supermarkets and it is due to be completed by December 2022. The brief provided by the Government was to consider:

• Industry structure for key building supplies • Nature of competition for key building supplies, including industry pricing practices or acquisition requirements that impact on competition • Impediments to the entry or expansion of new or innovative building supplies The major components for residential building have been stated as being foundation, flooring, roof, walls (Structural and non-structural interior and exterior) and insulation. With the price rises that we have witnessed over the past few months, it will be interesting what results and recommendations come from the study with this pricing activity as a backdrop. I will be particularly interested to see if any outcomes are shaded by the abnormal times, we are currently working in. NZCB will of course be fully engaged with the Commerce Commission on the study over the coming months.

A reminder that NZCB provides all members a set of helplines that you can access to discuss your situation in complete confidence with experts in their specific fields.

NZCB Services

A reminder that NZCB provides all members a set of helplines that you can access (mainly free of charge) to discuss your situation in complete confidence with experts in their specific fields. In particular, Employment Law specialists Copeland Ashcroft Workplace Lawyers, for any employment related issues and Health and Wellbeing specialists, EAP Services, who offer wellness programmes in the workplace and counselling services for you and your staff. Both are very valuable in these unusual times and I would encourage all members to use these support lines. Contact details for both can be found under the ‘Free Helplines’ section of the NZCB members’ only Toolshed: www.nzcb.nz or give the NZCB NSO a call on 0800 237 843.

The relaunched Halo 10-Year Residential Guarantee continues to be well accepted by both our members and their homeowners. I hope you have taken advantage of this relaunched guarantee product and offering it to your homeowners as part of your trust and service package. Till next time. – is this relevant? Sam