STATE OF THE INDUSTRY

Reports from Branch Presidents August 2021

AUCKLAND / NORTHLAND

Auckland region is continuing as the year started, with full books and under pressure for joinery with the continuation of high domestic spending due to lack of international travel. The Covid-19 lock down level 3 at the end of February beginning of March seems not to have much of an impact due to the construction sector able to work in level 3.

Supply issues with delays of hardware in the exterior timber window and door sector has eased considerably. Suppliers are now holding higher stock levels thus not having stock out situation due to shipping delays. I would like to applaud them for this as we all know it is a financial cost to carry stock, and we really appreciate their support to the industry.

Shortages of timber supplies on the other hand are at a level we haven’t experienced before. With finger jointed pine products and pre profiled timber being not obtainable for the greater part of this year. Cedar supply is also under pressure with one of our major suppliers deciding to cut 100% of its cedar for the building sector i.e., weather boards, leaving the joinery sector high and dry, especially as they were a major suppler of ex 64mm which is used for double glazing.

We are currently seeing continuing price increases in materials right across the board, as our suppliers’ battle with worldwide increases and the ever-increasing cost of shipping. We are seeing differing amounts from 5% to 25% which in turn has to be passed onto our customers.

It is exciting to see joinery company’s across our region taking up the Government’s support and taking on apprentices. We all know how hard it is to find qualified staff.

It was great to see many Auckland joinery companies enter into the Master Joiners Annual Awards, which resulted in collecting a couple of awards for Highest Workmanship & Skill for an Apprentice and Best Use of

Imported Timber. All in all, the industry is looking positive with plenty of activity been reported in the near future. - Rob

Canterbury

Pickup

The closure of our boarders has been very bad for some industries, but this combined with less money being spent on overseas holidays, has left the joinery and building industry busier than ever. Its not only new builds but renovations that have us struggling to keep up with customer demand. The only downside to this has been the increasing difficulty in sourcing some materials and having to order materials well in advance of needing them. In some cases clients are needing to have a second choice option due to unavailability of their first option. One difficulty with the increase in work load is it is getting harder to find skilled workers. Lack of availability in overseas workers is compounding the problem. Our local meetings have been well attended and we all enjoy having a meal and beer before hand. We have had a variety of guest speakers during our meetings including health and safety guest speakers. Canterbury Master Joiners are also currently conducting a pay rate survey to find out where different employees sit in the pay scale. This will help us determine our local average wage and help our members. Our next social function is a beer and nibbles catch up with partners included.

The Canterbury Master Joiners continue to advertise the MJ brand in the Metropol magazine to increase brand awareness.

We are glad its finally starting to dry out a bit in the rural areas after a very wet winter. The floods not only affected farmers but movement of products north and south with the Ashburton bridge being closed for an extended period of time. Hopefully the government now realises what these transport links mean to people outside the main centres.

- Nathan Busch

Central

The past 12 months has seen the Central Region continue to struggle with the growth in the construction and renovation sectors. Enquiry rates are still extremely high for renovations, which we can only assume is still due to the fall out from our borders being closed. Therefore, people have money and are upgrading their existing kitchens instead of travelling.

New builds are also not slowing down. Word from builders in the region is that people are approaching them with land secured and wanting builds to start as soon as possible. There is also a high demand for land and build packages.

Our Joiners are doing their best to keep up with demand, however it is pushing lead times out with most of our members now booked for the remainder of 2021 and into 2022.

Finding qualified/experienced staff is the next huge issue for us all. If you manage to find this type of person locally, then you are basically poaching them from another company, which isn’t great for the industry. There are also quite a few of us waiting on the government to make decisions around immigration and current Visa holders being able to renew their Visa’s and apply for residency.

As a region we have put an initiative in place for companies to hire new apprentices. This has been going great, seeing us take on fourteen new apprentices in the region over the last 12 months. This is the way forward to make sure the industry continues to thrive. We also have another initiative in the early stages to approach local High Schools with wood working compartments to try and encourage year 11 and 12 students to join the industry. All in all, it is looking really encouraging for the industry with no signs of it slowing down in the near future.

- Andrew Reilly

Otago Southland

The Otago-Southland region has continued on from a good start in 2021. Across the region and in almost all sectors the construction pipelines are strong.

Local joiners are reporting a good outlook on workloads and confirmed jobs through the rest of the year.

Labour and Labour supply constraints remain. Apprentice training is looking good for the future with strong numbers nationally and locally, although it will be some time before this translates to a larger and stronger workforce for the industry.

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 local joiners, we have a great pipeline of events remaining in 2021. We’ve had record attendance at our AGM and mid-year dinner in Cromwell, we are off to the Mataura MDF plant later in the month, and have the usual regional meetings across Cromwell, Dunedin, and Invercargill. 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 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 Hydro carbon 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

Waitaki

In general, the Waitaki area is very busy with many members having very good forward work, with some bordering on “extremely” busy. There are many opportunities for pricing, putting many estimators under the pump, and production departments in an over committed position with a lot of members pushing work out into the future.

Staffing is proving to be an ongoing issue with experienced tradesman and installers hard to find, which is also a reflection that in the Waitaki area, where unemployment is currently sitting at 2.4% - making for a very shallow labour pool to pick from. To try to manage the trade shortage long term, many members have 2 or more apprentices in their factories that will take a couple of years to become fully productive; however, a number of these apprentices are doing very well and advancing through their training quickly.

Material and product supply are a constantly evolving issue, with freight costs escalating, availability of some hardware, and material items being pushed out further due to disruptions in the supply chain. Generally, members are working through these issues with alternatives or securing product early. Constant price increases have made pricing extremely difficult with product quotes being valid for a lot shorter time frames, and additional clawback clauses in customer quotes.

All members indicate that clients are generally paying on time with the odd straggler requiring prompting.

In general, the Waitaki area seems to be moving forward well with most, if not all, members having a full workbook to early and mid2022. It had been noted by some that moving into the last quarter of the year overlapping contracts will make for some stressful times as the work ramps up, for myself this highlights the importance of “our” Waitaki Joinery Manufacturers network and the fact that being able to share our concerns at our regular meetings can be a huge support to all in attendance.

Gary Firman

Master Joiner Made

There are minimum standards that the joinery industry are required to manufacture to. AS/ NZS4386 sets the bar for kitchens, NZS 4211 for windows and doors. Usually, these standards are exceeded as manufacturers have set their own standards above and beyond the minimum requirements.

True manufacturing standards are achieved and confirmed by satisfied customers who enjoy great spaces created by well designed and professionally manufactured cabinetry and joinery. High standards also provide comfort in the knowledge that the materials and techniques used have provided the best fit for the intended use and that they will last the distance. Much of what is manufactured by Master Joiners can be considered Legacy products that will last for generations to come, not be tossed on the heap with the flat packed and imported alternatives clogging up landfills.

To constantly meet standards Master Joiner member companies, apply the tools of the profession across a broad range of operations. Whether its hand crafted, artistic ability to create a handrail wreath or geometric stair, or the skills to maximise efficiencies without sacrificing quality, manage logistics, and build high performing teams, there are many aspects to being a good operator.

Master Joiners make great mentors. Whether there are formal qualifications to acknowledge the skills gained or not, the best apprentices, cadets, trainees come from the best learning environments. Standards of manufacture are ingrained and when coupled with technology and vocationally learned skills the bar is set high.

A strength in membership organisations are the networks. Locally, regionally, and nationally there is acknowledgement of excellence in manufacture and awareness of peer review. There is accountability that comes with being a Master Joiner. The sticker on the front window and the logo on a shirt are proudly displayed as a mark of recognition. Of being Master Joiner Made.

Paul Ingram NZJMF Past President