STATE OF THE INDUSTRY

Reports from Branch Presidents August 2020

AUCKLAND-NORTHLAND

For most of us returning from Covid-19 lockdown was like just releasing the pause button and carrying on with the work we had on our books. However, there were some joinery companies that experienced having jobs cancelled or put on hold. This was mainly due to their customers being associated with the Airlines or travel industry. Since the return to Level-1, the Auckland Northland members have found business favourable. The order books have been kept full of a constant stream of work with all the companies I have spoken to so far. The range of work has been varied from company to company from the larger jobs (over $50k) to small additions, sashes etc. Some members commented that they are even looking at how much work they can fit in before the Christmas break. Most members on the outskirts of Auckland have also been busy and struggling to cope with the influx of work. Confidence within the industry appears to be strong with positive feedback, with builders having good forward work and machinery suppliers and tooling manufacturers reporting good sales. Concerns of work levels for next year and beyond are on most of the Auckland members minds. We approached one of our larger architects, which reported their workload has increased substantially with ongoing work since Covid-19. We are also seeing an increase in domestic spending with no overseas travel, and with the current buoyant housing market and car sales being high. This domestic spend is all positive for our future. As Auckland President I feel our industry is in a good place for the recovery of Covid-19 and into the future. P.S. Then 12th August 2020 Lockdown level-3 hits! - Rob Pickup

Canterbury

Covid 19 has changed lots of things in the world, unfortunately mostly for the worst. However our Canterbury members have found that the unexpected result of this epidemic is a huge increase in people wanting to update their kitchens and home offices after spending far too long in their homes. People that can no longer spend their excess cash on a overseas holiday seem to want to spend it updating their homes. Most of our members have more than enough work to keep them busy for the rest of the year. People seem keen to start projects immediately and want everything done yesterday. This will make the usually busy pre-Christmas season crazier than normal. After a period of zoom meetings we have now gone back to our monthly meetings. We are very grateful to Blum who have provided us with a new meeting space in their brand new South Island showroom/warehouse. We have had some great turn outs and good discussions. On the rural front we have had a very dry warm winter which has been great for the farmers who are currently in the middle of calving and lambing. The grass is really starting to grow and it does the heart good to see the young animals running around. Coming up we have our social event of indoor stimulator golf which should be a great event. We are striving to host more social gatherings as a way of spending time outside of meetings getting to know each other and having a beer.

- Nathan Busch

Central

Just when we thought we could get back to some normality Covid rears it’s head again, we can only hope that this doesn’t turn into another outbreak, our Government will finally learn that “Being Kind” to people coming back into the country will only lead to more and more outbreaks and further disruption to an economic recovery. Before this event the Central region had been experiencing a major resurgence in workloads with many reporting bookings well into the New Year, one can only assume that money once earmarked for holidays etc. is now going towards renovations and new pools. Hopefully people don’t start getting cold feet and pulling pin on their building projects with so much uncertainty around. Master Joiners continue to be proactive though with several initiatives nearly ready to roll out to members, the 30K contract and disputes process are nearing on completion so we hope to have something for our members to use in the not too distant future. -

Andrew Reilly

HAWKES BAY

- POVERTY BAY

HB/PB Master Joiners are keeping very busy. Busier than normal perhaps with the compounding of time frames due to the five-week lockdown or with the interest rates kept low. Surprisingly still a good rate of enquiry in the residential market. Staffing levels have always been an issue in a busy market - to retain your main team and then the challenge of looking for new staff. With more pressure of the unknown further out, whether to take addition staff on can be a tricky decision. Along with the ups and downs of the year we have said our farewell to a long-standing local member Larry Mckenna. He is sadly missed at our meetings with his positive outlook on the industry and interest in the future of training. Personally, he was always welcoming to us at local meetings and was good for chat regarding new purchases on machinery. In reflection these are some of the reasons why we are members. Locally we have enjoyed a night out at our Mid-Winter Xmas dinner, which was a good time to catch up in a more relaxed atmosphere with a light-hearted Secret Santa. - Greg Rabbitte

NELSON-MARLBOROUGH

We continue to wonder about the future of our local economy. In Nelson, the housing market and construction outlook are subdued, and consumer confidence is low. The impact of our closed borders removing the international tourist will be missed in the region. The retail sector posted solid sales growth over the quarter across the entire region. The Marlborough region mirrors Nelson however the pipeline of construction work looks solid based on the value of residential and non-residential consents issued over the past year. We all understand that COVID-19 poses a threat to exports, a key element of our region’s economy. This includes the high value export of wine, which is certainly a challenge. But the grapes were harvested this year despite the lockdown challenges. Reports suggest it should be an outstanding vintage despite the challenging situation. Nelson Marlborough and the wider Tasman region have reasonably diversified economies, so we expect the top of the South Island will prove to be more resilient than others. Our members in the present feel positive, with full order books and some already planning to close off for Christmas. The future is less predictable which necessitates our focus on upskilling our members through training and product awareness. Control what you can control. To that note, in July we held our first Joinery and Design Awareness event. Held at the NMIT campus 12 suppliers and training providers provided insights into new products, new innovations and new opportunities. We also celebrated the 186 category entries into the JADA 2020 awards and acknowledged the winners. This is another example of staying true to a vision but working in partnership with all in our industry. I’m fortunate to have our local secretary Phil Thompson who creates the concept and the platform to make this happen. The man knows how to network! We cannot control the future both locally and nationally and it is difficult to comprehend the global economic outlook, but we will remain focused on our vision to develop people and business. I encourage our members nationally to invest in your people and your local economy. Apologies to the little French general for this bit of plagiarism but a last comment and some regional promotion. “Nothing makes the future look so rosy as to contemplate it through a glass of our Top of the South wine”. -

Myles Sellers

Taranaki

With this winter weather here now, we are getting rain and wind storms running through the Taranaki province, with just the odd day of fine weather and warm temperatures, and the Mountain in all its glory. Since coming out of lockdown most members are busy, and inquiries are steady. Materials are generally coming in on time, with most supplier having stocked up and are large ordering more than they need, especially if coming in from overseas, as time frames have stretch out. Taranaki has generally been sheltered a bit, not really relying on tourism, this has helped us to move on and resume normal work life for the most part. It will be interesting once the wages subsidy has finished, and what that looks like for employers. Housing seem to be steady, with most builders reporting steady workloads, commercial is a bit quiet, but with the government announcement that stage 2 of the Base Hospital project about to kick off in December, with the announcement of the main contractor being let now. Earthquake proofing Yarrows Stadium will also put money into the Taranaki economy, as well as the Hydrocarbon announcement from the Government. It sounds like the oil and gas sector might be able to amp things up with some drilling taking place, so that can only be good. Most companies seem to be well staffed but finding the right person to want an apprenticeship is more of a struggle. Finding someone that is willing to work, has a good attitude and is interested in joinery, is quite the challenge. We need to be actively talking to the young people we know, or even, those looking to retrain, to gauge any interest. Maybe actively promoting this at high schools could be something to look at from a National Perspective.

- Bryan Frank

WAIKATO-BAY OF PLENTY

What began as a busy year for most of the Master Joiner members in the Waikato/Bay of Plenty before lockdown - is rapidly becoming an extremely busy year! While a number of companies started back at level one on four day weeks initially, certainly the majority are back to five day weeks. Members throughout the region are reporting high levels of enquiries, paticularly with renovations, although new builds don’t seem to have slowed down either. Some companies have closed off for Christmas and are taking bookings for early next year. Not being able to travel overseas seems to have been a factor for a number of clients deciding to spend those funds on a new kitchen instead. While lack of work doesn’t appear to be an issue, the supply chain is becoming a concern. Delays with imported materials will likely only get worse, especially with the increased demand that wouldn’t have been anticipated by the suppliers at the start of the year. Where possible it would pay to get orders in promptly. It may be an idea to prepare clients that supply of their chosen product may be affected and perhaps they should have a back up choice. Well the news has just broken that there are four cases of community transmission in South Auckland

- David Higgins

Waitaki

The Waitaki area continues to be very busy which was not what members expected after the Covid lockdown and pessimistic economic forecasts. Fortunately, for our area, very few jobs have been cancelled due to Covid. There seems to have been a bit of a slow down in the larger commercial jobs but this has been offset by a rise in residential jobs. There continues to be a high number of enquiries throughout the region as well as lots of pricing to be done for work to be completed both this year and next year. The high level of enquiries appears to be due to people not being able to travel overseas and deciding to spend money on their house instead. Some members have even had to turn work away because they are fully booked. Our members will be busy through until at least Christmas and the majority already have work booked well into next year. Staffing remains stable and some members are considering hiring new staff. One member hopes to start a new apprentice within the next couple of weeks. Two other members will both look at employing another apprentice soon if work carries on at the same rate as present. Both an office manager and a labourer have been employed recently by one member while another is currently supporting the high school ‘Gateway’ programme. It has been noticed by members throughout the region that some people are a bit more stressed since the lockdown and not so tolerant in the workplace. Members are looking at ways to assist/deal with this. Supply and delivery of material was a bit slow after the Covid lockdown but seems to have improved since then. It is currently good for most items but there are still some delays/courier issues. These issues seem to be affecting panel board, some timber and the supply of appliances. Most clients are paying on time with no issues. One member reported a couple of slow payers but noted that they are now current. No bad debtors have been reported for this quarter. While Waitaki’s members are positive and have good forward workloads, there is still a lot of uncertainty about next year due to the ongoing Covid situation and the possible long-term effects it could have. The end of the Government wage subsidy could also impact on our industry – both directly and indirectly. Everyone is hoping that we don’t see a second wave of Covid in New Zealand. Despite the doom and gloom of Covid, the Waitaki area is enjoying being busy and will make the most of the current growth in residential work. -

Gary Firman

Wellington

As usual “Where has the year gone”. Guttered that AWISA was postponed … I’m sure we were all looking forward to that, myself included. COVID gets the middle finger for that one. It seems lockdown had a silver lining for us in the industry. Talking to reps and other fellow Legends of the industry, the general feel is “busy” and “positive”. The lock down for us was like an extended holiday with time to recharge the batteries. Also there is a noticeable reduction in sick days within my business, which I’d say is a direct benefit of everyone staying at home. Now we have the Christmas rush to look forward too. There is a high amount of renovation post lock down in our region accompanied with some large commercial construction underway. I suppose that is one huge Plus with the government being so local. Some members have seen an increase in apprentice enquiries which could be something to take advantage of … maybe get some fresh blood through training. We had a very large turnout to our last meeting which was great to see. We have a few new members join as well. Dear I say, Christmas is coming and we are looking forward to finishing on a high and this rollercoaster of a year to be over. –

Grant Smith