NZCB InHouse magazine October/November 2021

Page 26

IN THE KNOW —

Timber shortage – spring update The structural timber shortage around the world continues but there is hope for New Zealand. Since my last New Zealand Certified Builders update, I have spent time in Australia with some of the largest importers, sawmillers, truss makers and builders. The structural timber issue is far worse there, mainly because Australia relies on imports for 20 percent of its needs. Most of that comes from mainland Europe, where suppliers have been diverting product to closer markets with high demand and cheaper logistics, such as Britain and the USA. In Australia there is an added complication that it is illegal for building firms to have price escalation clauses in house building contracts. This means many are at risk of failure, and this is being compounded by limits on building activity in states such as Victoria. Back at home, and there is undoubtedly still a shortage for some merchant outlets. Framing stocks in sawmills are very low for this time of year. However, the Level 4 lockdown in Auckland will provide a chance for the sawmills – which are generally now in Level 3 regions – to start to catch up on the shortfall. Sawmills too have lost two weeks of production, but if Auckland has, say, an additional five weeks of lockdown, then that is 10 percent less annualised demand from the part of the country that takes around half the timber. The nett effect could be to free up 5 percent of annualised supply. In the past I have speculated the shortfall could be in the 5–10 percent range, so this lockdown could help reduce that significantly if it goes on. Sawmills will use this time to re-fill the merchant yards and frame and truss plants around the country. The smart builder in Auckland would be talking to their merchant about what this means for their needs and the ability to secure earlier supply. Red Stag is starting to see many Cross Laminated Timber (CLT) projects coming through the design and consenting process. This is logical given its speed of construction, sustainability, and the fact that it is readily available now. Red Stag’s entry into the market has bought competition which has lowered the price of CLT generally – welcome news at a time when nearly everything is going up in price, including steel, which I read is up 48 percent in the last 12 months.

Red Stag Group CEO Marty Verry (left) with NZ Police David Houston, inspecting CLT floors destined for a project in Palmerston North.

CLT alleviates the need to build the mid-floor on site with components. It’s true that this reduces labour, and therefore the builder’s ability to charge the client. However, builders should remember that they typically make money by marking up the materials component also. Further, by completing the job earlier, it allows the build firm to move on to the next project and increase turnover that way. It is important to factor in CLT at the design stage though. 126mm thick CLT floors need taller frames. Clear spans can be over 5m with terraced houses and apartments with CLT. Consider CLT if you have a lot to build or are having trouble getting wides and flooring material to make your own floors, and you have some control at the design stage. Finally, keep an eye out for glulam lintels from Red Stag too. These should hit the market in the next month or two and will help fill the timber shortage and lower construction costs.

The other supplier from Australia is facing increased shipping costs and logistical challenges, which is also having an impact. This is a good example of the benefit of supporting local manufacturing, which is being increasingly recognised in the media now. Marty Verry, CEO, Red Stag Group. Red Stag Timber is an independent, privately owned timber company, based in Rotorua. It is currently New Zealand’s largest sawmill, focussing on producing high-quality timber products for the residential and commercial construction markets in New Zealand, Australia, and the Pacific Islands. A recent addition to their production portfolio is Cross Laminated Timber. For more information visit www.redstag.co.nz

24


Turn static files into dynamic content formats.

Create a flipbook

Articles inside

NZCB Affinity Partners

1min
page 62

NEWS BITES

4min
pages 58-59

Adding structural strength with spray foam insulation

1min
page 57

GIB Barrierline® common questions

2min
page 56

Control costs and protect your work with SOLITEX EXTASANA®

2min
pages 54-55

Don’t miss out on important news and offers

2min
page 51

Apprenticeship training – the latest RoVE update

3min
page 50

How to protect yourself from burnout

2min
page 48

Message from the AST Trust

2min
page 49

Supporting someone who is showing signs of stress

3min
pages 46-47

Auckland Family Day a great success

0
page 44

$2,000 raised for Taranaki Coastguard

1min
page 43

Dozens attend inaugural professional development day in Hamilton

2min
page 42

Task Analysis: What it is and when to use it

2min
pages 40-41

Working together to boost Health and Safety

3min
pages 38-39

Green Building Council launches new Homestar

4min
page 36

Damn Spambots! How to win the battle against the scammers

2min
page 37

How tech will help you in and out of lockdown

3min
pages 34-35

Halo Guarantees Limited – one year on

6min
pages 32-33

Calculating accurate labour costs is well-worth the effort

3min
pages 28-29

Tips for better client management

3min
page 31

Why now’s the time to spend money on your brand

3min
page 30

Are you a manager or a leader?

3min
page 27

Are doughnuts the answer to your staffing issues?

3min
pages 24-25

Timber shortage – spring update

3min
page 26

Can you pass on cost increases to your clients?

7min
pages 22-23

Notifiable privacy breaches

3min
pages 20-21

Meet the NZCB Board

5min
pages 18-19
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.