STATE OF THE INDUSTRY

Reports from Branch Presidents February 2021

AUCKLAND / NORTHLAND

We start the year as we ended 2020; full books and under pressure. Although a few companies were slower to get started with clients still making the most of the great summer weather, but now up to full capacity. The common feel is that 2021 will continue to be a year effected by Covid 19. International travel and tourism on hold, resulting with the investment back into the domestic construction. Also we are faced with delays in imported materials and componentry, with countries still being closed down with outbreaks recurring. The upturn in domestic construction has put huge demand on our timber supplies, in particular Pine. Pine being widely used in construction, along with high level of export log, our suppliers struggling to get feed stock. The impact of interrupted supply of materials on our members businesses is concerning with jobs not been completed on time and alternative products needing to be sourced which have not been budgeted for. Members are now starting to talk about the effects on their businesses, as the Government has introduced a Bill to change the entitlement of sick leave; doubling from 5 to 10 days. To add to this is the addition of another public holiday; Matariki first one set down for 24 June 2022. Both combined, potentially in the worst case, businesses will lose a week’s production from each employee, resulting in charge out rates having to increase. With a spate of price increases in materials and the pending increase in overheads, members are concerned about the increase in cost of timber joinery in the market. The Auckland’s annual Fishing trip is set down for mid-February, which our members are all looking forward to. This year venturing to the Hauraki Gulf but are currently at risk due to the latest Covid-19 outbreak. - Rob

Pickup

Canterbury

After a crazy busy time leading up to Christmas our members have also had a very busy start to the new year. I hope you all had a well earned Christmas break and enjoyed the lovely warm weather ready for a busier than normal year ahead. With confidence in the industry strong, qualified staff are becoming hard to find. Lots of our members are taking on apprentices with the governments grants available. I am pleased to see apprenticeships are now a pathway for our young people. With the short supply and long shipping times of materials, we now need to be more organised in planning jobs. This also requires clients to finalize plans, colours and hardware earlier or risk long delays. In Canterbury we are getting good numbers attending our meetings at Bum’s great new showroom/warehouse in Christchurch. Our meetings are a great place to have a beer, a meal and discuss all the happenings in the joinery world. We are holding our inaugural Canterbury Master Joiner Awards in late February. We are looking forward to showcasing our local Master Joiners amazing work. In order to raise the profile of the MJ brand and Master Joiners we have been advertising in Metropol magazine. We want the public to recognise MJ logo. Our aim is to get potential clients to use a Master Joiner for all their Joinery needs. With conference approaching we are all looking forward to catching up with fellow members from throughout the country. Conference has a bit of a different look this year. With some great speakers, breakout sessions and the Annual Excellence Awards.

- Nathan Busch

money on renovating their homes. The feedback is that people are getting multiple enquires a week for quotes and designs on kitchens etc. - Andrew

Reilly

Nelson Marlborough

Central

The Central Region is definitely still very much under the pump. From what we have heard from members and also nonmembers, everyone is solidly booked well into the middle of the year. Residential new builds are keeping a lot of people busy. The rest are being kept busy with the renovation market which has just taken off after the first Covid lockdown. People who were planning overseas travel, are now instead spending their

Part way through 2020 we as a region envisaged our economy being hit hard and about to enter a significant recession. But the scenario is somewhat different. All of our members have seen incredible customer demand, significant pressures on supply and retaining staff has become front of mind. Our members are tremendously busy with full order books until mid year and have established reliable supply arrangements. We are blessed as a region to have a number of suppliers who have been superb support partners in fulfilling supply demand requirements. House builds are up, consents are up, internal migration is still very positive towards our region. We as a branch continued a focus on professional development and training over the last year. This years focus will be Personal Well-being for our members and our members staff. We believe the effects of Covid has mediated people’s perspective on what is important, so staff need to be approached differently. The traumas of last April and May also indicated that education around well-being support and resilience management is a priority. We feel in a very good position to face 2021 and whatever that may bring but we need to develop tools to protect our future. In line with that we again celebrated our end of year ‘graduates’ alongside ARA, BCITO and NMIT. We took the opportunity to celebrate and award those who completed the PreTrade programme and the high performing apprentices. Another great event and another example of celebrating achievement and focusing on the positives. We have our own awards locked in for early March and have a high interest in attending the MJ conference this year. Even though we are all very busy, we see the benefits of learning and also believe celebration of our industry is important. Late last year saw an initiative with a local establishment midway between our two regions Marlborough and Nelson, the Rai Tavern. Suppliers and Joiners worked together to help the renovation of the old pub. Meaning that moving forward we will have a venue halfway between the regions, that is master joiner friendly and perfect for our joint meetings. Every day is a good day. There is something to learn, care and celebrate. -

Myles Sellers

Otago Southland

The Otago-Southland region enjoyed a strong finish to 2020, and this has continued on to a good start in 2021. Local joiners are reporting a good outlook on workloads and confirmed jobs into 2021. There appears strong demand in most segments. Labour and Labour supply remains steady. Apprentice training is also looking good for the future with strong numbers nationally and locally. Supply chain pressure remains as the most significant of the short-term risk. Global supply chains are still recovering from the COVID interruptions and this has persisted as challenges to Sea and Air Transport.For the joiners, we have a great pipeline of events in 2021. Our National Conference in March 2021 is the first face-to-face since the #1 most-awesome conference ever in Invercargill, June 2019. Locally, we have scheduled multiple events and meetings all over the Otago and Southland region: Dinners, Activities, Site-Visits. Employees, staff, and all local and regional associate members are welcome. I look forward to catching up with you all soon.

- Reuben Bogue

Taranaki

With hot summer weather and long sunny days, most of our member have started the year with good work loads, and most have good forward work loads. Most members have reported heavy work loads leading up to Christmas time. A shortage of some materials has been, and continues to be a problem, which means that members are developing better organisational, and forward planning skills. Fortunately, most suppliers had stocked up with larger quantities of product, which proved a saving grace. Ordering from overseas is still proving a challenge with some products taking longer to get to NZ, and then through the necessary procedures, before they get to us. Taranaki is experiencing an extremely hot housing market, with houses selling very fast, sometimes within 24 hours of being listed. Section’s seem to be moving fast all over Taranaki, and Stratford is a huge part of that. Sections are often sold before the first sod is turned, or titles issued. New housing seems to be very buoyant, with most builders reporting steady to heavy work loads over the next year and into 2022 . The Government’s kick start projects have begun, with the Base Hospital under way, and the Yarrows Stadium stage 1 Earthquake Strengthening having started, as well as the Somerset Rest Home development in Bell Block. While the hive of activity in all areas of the building trade is great for us all, it is putting an enormous strain on employing and retaining qualified staff over all trades. Most companies seem to be well staffed and there is little movement. People are moving to Taranaki but finding the right person, willing to work, reliable and with a good attitude and a responsible work ethic can be a challenge. It is heartening to hear that a couple of companies have utilised the Governments Apprenticeship Scheme. There are so many possibilities within the joinery field and we need to be thinking about how we can entice the youth of today to want to be involved, to be a joiner, a furniture or kitchen designer, a CAD designer…the opportunities are endless. Lets keep moving forward together, as an industry, to support the team of five million! -

Bryan Frank

WAIKATO – BAY OF PLENTY

The lead up to Christmas was absolutely diabolical for Master Joiner members in the Waikato/ Bay of Plenty, it was where we really felt the effects of the five week loss of manufacturing while in Lockdown. We also contended with stock and materials being delayed and/or being out of stock - it was like nothing we’d ever experienced before. Frustration levels were running high, and I think everyone in the industry copped it at some stage - yet the situation was (and still is) out of anyone’s control. I hope you all had an opportunity to rest and relax over the holiday period, and recharge the batteries. As members were so busy, we opted to have a Zoom meeting in October, but it was great to see (in person!) twenty or so Waikato/Bay of Plenty members and Associates at our Christmas Golf evening in Tirau in November. Shannon Atwill (Laminex) was the proud winner of our coveted regional trophy, for being closest to the pin in a “shoot-out” after the nine holes. Members throughout the region are still reporting high levels of enquiries, and it doesn’t show any signs of letting up. How long it will continue for is anyone’s guess. Staff shortages are still an issue, unfortunately it would appear no joiners have returned from overseas! Although the suppliers were able to catch up slightly by working some or all of the holiday period, with the pandemic still raging around the world, we may soon be back where we were pre-Christmas with stock concerns. Within our own company we’re doing our best to get material orders in promptly where possible, but that creates its own issues; cost, storage, etc, and it’s not always feasible. We’re looking forward to hosting the Conference in March, seeing familiar faces and sharing experiences. We are extremely fortunate to be able to participate in an event like this, while the rest of the world is still so restricted. Let’s make the most of it while we can. I wish you all the best of luck in these uncertain times. -

David Higgins

Waitaki

The Waitaki region is very busy. There is a lot of work to design and quote on, and new inquiries are being received on a regular basis across our region. Work has remained steady with no quiet patches. Members reported that forward workloads are looking good. All members have plenty to do for several months and for some most of the year is already fully booked. Unfortunately, this means that some are having to turn down pricing of work. Due to demand and work being booked so far in advance, it is hoped that timing for most jobs remains as currently scheduled. Since the last report, four apprentices have been employed in our region and another member is considering offering a new apprenticeship. In addition to the apprentices, five members have taken on new staff in a variety of roles including joiners, office manager and quantity surveyor. While some staff have been lost due to retirement or leaving the area, the number of new staff taken on has been greater than the number leaving. The high amount of work about at present means that seven members are considering employing extra staff The skills being looked for include apprentices, qualified joiners (if they can be found), installers and CAD programmers. One member noted that they have been using temp staff from Christchurch until they can find permanent tradespeople. There is a shortage of qualified joiners in our region. Getting material is proving to be challenging and may become worse as the year progresses. Also of concern is how this may affect contracts with liquidated damages if the end dates cannot be met due to materials not being available. It has been noted that there is a quick turnaround of board again which is great. Unfortunately supply of both stone and laminate benchtops seems to be slower than normal due to stock and Covid hold ups. Other suppliers, for example hardware fittings, are struggling to get stock and the lead times for delivery are getting pushed out. Members are aware that this means we all need to be more organised and order stock well in advance of needing it. Finances are mixed across our region. Some members reported no issues while others noted that residential clients are pushing the boundaries. Examples are being slow to pay or only making part payments. This is across deposits, progress payments and standard invoices. No major bad debts were reported but we all need to keep on top of this so that it does not escalate. In general, the Waitaki District has a positive outlook. It looks like it will be another busy year, however, it may be more challenging due to Covid and overseas lockdowns affecting the supply chain. There are a lot of renovations and new builds happening in the area so the work involves house loads of joinery, not just kitchens. The lack of overseas travel appears to have had benefits for our industry when it comes to people deciding to build or do alterations. Work keeps rolling in and long may it last.

- Gary Firman