Supply chain strain

By Megan Dunn

Supply chain issues are certainly not a new phenomenon for the infrastructure and building world.

However, since the emergence of COVID-19 supply chain strain has become heightened to entirely new levels, wreaking havoc in the industry- especially all the way down here in little old New Zealand.

Being one of the most remote island nations in the world does have its’s advantages on many occasions however, this is not one of them. Getting goods from point A to point B tends to be easier when there are not huge bodies of water and continents between the two. Ports of Auckland chair, Jan Dawson, acknowledges the challenges New Zealand faces in these stressful circumstances. “New Zealand is a tiny trading nation that lies thousands of kilometres from its overseas markets, so we need to make sure our national supply chain and its international connections are as efficient as possible,” she told Newsroom.

“We’re a small nation with limited resources, so our infrastructure investments need to be well thought out and well used, in order to deliver value.”

The infrastructure commission recently established that freight and supply chains are at the centre of their recent draft strategy for the government.

“Our nation will benefit if we can create an infrastructure plan that enjoys cross-party support and lasts beyond the terms of individual governments,” Jan says.

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“The Commission’s evidencedriven approach and long-term thinking is very positive in this respect, and bodes well for the future.”

The long-term strategy comes just at the right time as frustration mounts over export and import delays that have seen companies and our economy as a whole lose out on millions of dollars’ worth of goods- stuck on container ships unable to dock in our ports.

The draft strategy outlines “Global supply chain disruptions have been common, with widespread impacts on global airports and air freight.

“This has added to the cost of freight, increasing lead times and lowering inventory levels. Many of these impacts are expected to continue for some time. For many suppliers, traditional models of consumer shopping have been replaced with home delivery,” it says. “Maintaining security of supply within often remote and geographically challenging parts of the country is important to all New Zealanders.

Road and rail transport will remain fundamental in connecting our regions. However, digital and mobile connectivity are also becoming essential. Moving data and information will become as important to the regions as moving energy or water.”

The Ministry of Business, Innovation and Employment (MBIE) recently published the Building and Construction Sector Trends Annual Report 2021 (Report). Their data on construction materials and products are as follows: We’re a small nation with limited resources, so our infrastructure investments need to be well thought out and well used, in order to deliver value.

Supply chain: COVID-19 has had a devastating impact on the global supply chain. This has largely impacted the construction sector given a significant proportion of New Zealand’s construction materials are imported. GDP: The construction sector is a major contributor to New Zealand’s economy, contributing 6.7 percent of total GDP in 2019. The sector was the primary contributor to both New Zealand’s decline in GDP following the pandemic, and its rebound in early 2021. Key trends in materials and products includes:

• Sheet metal becoming the most popular roof cladding material • Weatherboards becoming a popular wall cladding material • Timber remaining the most popular material for wall framing and floor joists • Fibreglass being the dominant insulation material for walls and ceilings.

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