Design centre future where timber construction leads the way

formance of Manufacturing Index (PMI) recorded an index of 52.1 in January 2022. (A PMI reading above 50 indicates that manufacturing is expanding, below 50 signifies that it is contracting).

With the exception of August 21, a month impacted by a COVID-19 enforced national lockdown, the PMI has registered growth every month since December 2020.

Of the main sub-indices only employment registered contraction.

The strongest results were delivered by Deliveries (53.8) and New Orders (53.3). New Zealand’s rating compares favourably with both Australia and China, which, according to J.P. Morgan’s Global Manufacturing PMI index, experienced contraction in the opening month of the year registering ratings of 48.4 and 49.1.

Retail Sector

Retail leasing conditions in major CBD markets remain challenging as a result of Covid-19 impacts on pedestrian counts, inflation, staffing and consumer spending activity. Auckland CBD vacancy has reached a record high 14%, while Wellington’s vacancy remains more resilient at 4.9%, below the 25-year average.

While CBD prime rents have increased over the past decade in NZ and Australia, the gap between rents for the two country’s remains high. With ongoing border limitations in NZ versus an opening in Australia’s border restrictions and a return of CBD office workers, the gap is likely to increase further moving forward.

Figures from Stats NZ show that actual retail card spending totalled $6.35 billion in January 2022, up $344.75 million (5.7%) on the January 2020 figure.

Core retail spending increased by $273 million influenced predominantly by a 9.4% increase in spending on consumables and a 5.7% lift in sales of durables. Only the hospitality sector saw a decline in sales values with total spending contracting by 2.9%.

The expansion of online retailing has accelerated over the last two years. Figures released by NZ post show that in 2021 online spending reached $7.67 billion. This represents annual growth of 21% which, following a huge year of growth in 2020, sees online spending now 52% larger than it was pre-pandemic.

NZ’s Offshore Sales Activity

Despite NZ’s closed borders, offshore investment activity remains a highlight of NZ’s transactional market, a feature highlighted by the recent GIC/Precinct announcement.

While Russia’s invasion of Ukraine is elevating risk and uncertainty on international investment decision making currently, NZ’s ‘safe haven’ appeal will continue to remain a positive feature.

With border restrictions gradually easing in NZ, more so in the second half of 2022, a boost in offshore sales activity is expected that will lift overall sales values back in line with more recent sales trends over the past few years.

aPRIL- May 2022 Design centre future where timber construction leads the way

Envisioning a future where timber is used more widely in mid to high rise buildings and contributes to carbon neutral targets, is an exciting opportunity

The tools to make this a reality are now coming together with the launch of the Timber Design Centre.

Te Uru Rākau – New Zealand Forest Service deputy director general Jason Wilson announced the launch at the WoodWorks conference, explaining that the Timber Design Centre aims to increase the use of timber, particularly in structures such as offices, hotels and multi-storey apartments.

The Centre will provide expert advice, research, information and educational resources for those in building design and construction. The services are being shaped directly by industry and the timberdesigncentre.co.nz website has been created to support this from day one.

The Centre’s work programme will be co-designed with a wide range of people involved in the building construction process including developers, designers, council planners and consenters, architects, engineers, builders, building owners, students and researchers.

The Centre is an initiative between Te Uru Rākau – New Zealand Forest Service and a consortium comprising Scion (Crown Research Institute), the Wood Processors and Manufacturers Association (WPMA), New Zealand Timber Design Society and BRANZ.

The consortium explains that the greater use of timber in construction provides an opportunity for the sector to support the Government’s commitment to be carbon-neutral by 2050, whilst realising the broader economic and wellbeing benefits of including wood products in multi-storied buildings.

Scion sustainability architect Andrea Stocchero says the world is on a quest to decarbonise and many people don’t realise New Zealand’s built environment is responsible for about 20 percent of the country’s carbon footprint due to the emission of greenhouse gasses over the full life cycle of buildings. This includes embodied emissions of building materials and products.

“New Zealand can maximise the use of sustainably sourced, locally grown and manufactured wood products.

“Trees sequester carbon from the atmosphere while they’re growing, and as long as the wood is in use, that carbon is stored so

it’s not going back into the atmosphere. If the timber is sustainably certified it means that the forests are re-growing after each harvest, and the carbon sequestration cycle continues,” he explains.

Timber Design Society president Dr Daniel Moroder says the time is right for New Zealand to have a dedicated timber knowledge centre which provides advice and guidance on timber construction.

“Over recent years, the interest in engineered timber construction has increased significantly and we now need to ensure that clients, designers, contractors and authorities have all the information they need to build efficiently in timber.

“The centre aims to bring the timber industry together and to provide answers to all current obstacles we encounter during the design and consenting process of timber buildings,” he explains.

WPMA chief executive Stephen Macaulay says technological advancements in wood manufacturing provides an opportunity to accelerate the use of engineered mass timber products in medium to high rise buildings across New Zealand.

“The Centre has a key role to play in promoting greater use of an expanding range of timber products available to the construction industry. Greater use of locally harvested timber products in apartments and offices not only significantly reduce the carbon footprint of these building structures, it also offers the natural characteristic of comfort and warmth to occupants that are rarely found in other building materials.”

BRANZ General Manager of Research Dr Chris Litten says the development of the centre has been a true collaboration between Government, industry and the research community.

“We are excited by the role the Timber Design Centre will play in challenging the construction sector to produce healthier and more sustainable buildings. BRANZ is proud to support the work of the Timber Design Centre in providing evidence-based information for low-emissions construction.”

The Government is funding the Timber Design Centre as part of its Fit for a Better World roadmap and is one of several key initiatives under way this year to help transform the forest and wood processing sector.

Te Uru Rākau New Zealand Forest Service programme delivery forest science lead Emily Telfer showcases the new timberdesigncentre.co.nz website

The Timber Design Centre encourages and facilitates greater use of timber in the design and construction of all building projects. It has a particular focus on non-residential buildings and multi-story residential buildings. Visit www.timberdesigncentre.co.nz