TRADE HUB
TIPS
S U M M E R 2 017 -18
SEE PAGE 11
Y L R E T R A U Q
KIWIBUILD SCHEME WHAT IMPACT WILL IT HAVE? TECH GUIDE INTERTENANCY WALLS
THE WANAKA WAY
TEAM APPROACH KNOCKS IT OUT
This publication contributes to LBP points under the Skills Maintenance Scheme
mitre10.co.nz/trade
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CONTENTS
FEATURES
15
12 AROUND THE REGIONS
NZCB Regional Presidents share their thoughts on how things are going in their part of Aotearoa.
15 A WHOPPER “MAN-CAVE” FOR WANAKA
Wanaka builder Phil Rogan shows us one of his latest house builds.
22 TRANSFORMING THE BUILDING SYSTEM WITH INDUSTRY INPUT
MBIE’s General Manager of Building System Performance Anna Butler shares her views.
24 STEPPING UP THE GAME ON SITE SUPERVISION
LBP Scheme Registrar Paul Hobbs discusses the importance of getting supervision right.
33
30
28 UNPACKING THE CORDLESS JOBSITE A look at DEWALT’s FLEXVOLT system.
33 WHAT’S IN THE TOOLBAG TO GROW THE WORKFORCE?
BCITO CEO Warwick Quinn talks about the industry’s labour crunch.
REGULARS
19
8 IN THE COMMUNITY
A flyover of Mitre 10 Trade news from around the country.
11 TRADE HUB
Making your online experience more efficient.
19 COMMUNITY FOCUS
Mitre 10 MEGA Nelson and NZCB build a house to raise funds for Nelson Marlborough Rescue Helicopter Trust.
20 BY THE NUMBERS
Will the Government’s KiwiBuild initiative move the needle on new builds?
30 TECH GUIDE
5
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QUARTER UPFRONT
TRADE HUB
TIPS
SEE PAGE 11
S U M M E R 2 017 -18
TIME FLIES WHEN you’re busy, and this year has gone by at full speed. Our customers and trade teams have kept the pedal to the floor with construction demand remaining firm throughout the year, and it’s positive to see the boost it has brought to all corners of our industry. Increased demand also brings increased pressure on resources, and we know that across the sector there are more than a few headaches which need to be addressed. We caught up with four NZCB regional presidents from all corners of NZ to find out what conditions are like in their region and how their members are responding to the challenges (page 12). The Government’s KiwiBuild initiative is planned to get underway in 2018, so we asked forecasting experts Infometrics to look at the numbers and give their opinion on what the effects might be for those in the construction sector (page 20). We also checked in with BCITO for an update on industry efforts to improve the labour shortage (page 33), and MBIE’s GM of Building System Performance gives an insight into the Ministry’s approach to improving our building system (page 22). Our national trade offering is continuing to expand and achieve great results across the country by delivering on our mantra to make it easier for customers to do business. Our Wanaka store is a great example of this, and they recently teamed up with local builder Phil Rogan for an interesting project – supplying everything from foundation to fence line, including one of our designer kitchens – resulting in a smooth and hasslefree build (page 15). Your feedback is really valuable in assisting us to improve our offer to you, so please let our store teams know what’s good and not so good about doing business with us. We know our success would not be possible without your support, so on behalf of all of our team members, thank you for a great year. I hope everyone gets the chance to enjoy a pleasant, safe, and well-deserved break. Take care of yourself and your team members over the summer period, and we’ll look forward to seeing you all in the New Year.
Y QUARTERL
KIWIBUILD SCHEME WHAT IMPACT WILL IT HAVE? TECH GUIDE INTERTENANCY WALLS
THE WANAKA WAY
TEAM APPROACH KNOCKS IT OUT
This publication contributes to LBP points under the Skills Maintenance Scheme
mitre10.co.nz/trade
This Wanaka build included a 100m2 gallery to house the owners’ car and motorbike collection. Read more on page 15.
Mitre 10 Trade Quarterly is published four times a year in association with Mitre 10. Managing Editor Adele Thurlow Art Director Marc Backwell Sub-Editor Katherine Granich Contributors BBFNZ, BCITO, DEWALT, GIB, Infometrics, LBP, MBIE, MIT, NZCB Print and distribution PMP Limited Editorial enquiries Chocolate Fish Media adele@chocolatefishmedia.co.nz Advertising enquiries marketingsupport@mitre10.co.nz
Derek Heard General Manager Trade
Private Bag 102-925 North Shore City, Auckland 0745 mitre10.co.nz/trade
In between issues of Trade Quarterly, catch up on the latest Mitre 10 Trade and industry info by visiting the Mitre 10 Trade Blog – go to mitre10.co.nz/trade and click on the “News” tab to access the blog.
THIS PUBLICATION IS RECOGNISED BY THE BUILDING AND HOUSING GROUP AS CONTRIBUTING TOWARDS THE SKILLS MAINTENANCE REQUIREMENTS FOR THE LICENSED BUILDING PRACTITIONER SCHEME. If you are a licensed building practitioner, cut out and safely retain this panel with your skills maintenance literature for future reference and audit confirmation. Ref: Trade Quarterly Summer 2018
7
Mitre 10 Trade Quarterly is subject to copyright in its entirety. The contents may not be reproduced in any form, either in whole or in part, without written permission of the publisher. All rights reserved in material accepted for publication unless initially specified otherwise. Opinions expressed in Mitre 10 Trade Quarterly are not necessarily those of Mitre 10. No responsibility is accepted for the suggestions of the contributors or the conclusions that may be drawn from them. Although Mitre 10 has made reasonable efforts to ensure accuracy, the reader remains responsible for the correct use and selection of any tools, materials, and systems followed, as well as compliance with all applicable legislation. Mitre 10 Trade Quarterly does not constitute legal advice and readers should consider seeking their own professional advice.
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FROM THE REGIONS
IN THE COMMUNITY Check out what’s been happening across the country.
Grand Designs in Helensville Mitre 10 Westgate helped a Helensville couple recreate a Victorian-style villa that was featured on Three’s Grand Designs NZ television show. The store supplied building products throughout the house, including the shed, chattels, and kauri flooring. See page 9 for more.
Helicopter House charity build
Mitre 10 MEGA Manukau hosted the final fitout for one of the three shipping containers repurposed into modern learning spaces by Manukau Institute of Technology’s Faculty of Engineering and Trades before being donated to Manurewa High School. The fitout took place during a weekend in October in the store’s carpark and involved students from Manurewa High School. See page 9 for more.
NELSON MAIL
Mitre 10 MEGA Nelson’s Helping Hands project teamed up with NZ Certified Builders and Nelson Marlborough Institute of Technology on a charity build to benefit the Marlborough Rescue Helicopter Endowment. The three-bedroom house was constructed over eight weeks and auctioned off in December. See page 19 for more.
Turning containers into classrooms
Yacht club sail sponsorship
FAIRFA X & WANAK A MIRROR
Mitre 10 Wanaka has teamed up with local architect Anne Salmond to host a series of free monthly Superhome Movement talks. Running from October to March, the talks will focus on sustainable home design and energy-efficient construction methods.
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STAR MEDIA
Wanaka Superhome Movement
Mitre 10 MEGA Ferrymead and Mitre 10 MEGA Nelson donated new mainsails to their local yacht clubs to be used for learn to sail classes. The new orange sails are nice and bright, perfect for training.
CLEVER DESIGNS
TURNING CONTAINERS INTO LEARNING SPACES
showcase their skills to the public while getting stuck in to finish the project. Mitre 10 MEGA Manukau Trade Manager Ben Haverfield says it was great to get involved in a community project to help out a local school. “This was a unique opportunity to generate interest in the trades for the high school students, giving them an opportunity to work on a project alongside MIT students sharing experiences on a possible pathway after completing high school,” says Ben. “The students showcased some great skills during the final fit-out, and by hosting it in our car park, we were able to engage with the community and show how local businesses are supporting students who want a career in the trades.” The project was completed in late October and the repurposed container was taken to Manurewa High School to be used as both an educational and community facility for the students.
MITRE 10 MEGA Manukau recently partnered with Manukau Institute of Technology (MIT) to repurpose and fit-out a 20-foot shipping container, transforming it into a modern learning space for Manurewa High School. MIT’s Faculty of Engineering and Trades developed the idea as part of their goals to work with the community, showcase the trade skills of their students, and benefit a local school. Prefabrication work on the container was completed onsite at MIT before it was transported to the carpark of Mitre 10 MEGA Manukau for the final fit-out. During a weekend in October, both students and tutors from MIT and Manurewa High School were able to
HISTORIC HOMESTEAD IN HELENSVILLE HELENSVILLE LOCALS JOE and Kelly Davison’s five-bedroom house build was recently featured on the Season Three premiere of Grand Designs NZ. The build ran from November 2015 to January 2017 and was replicated from a Victorian-style Dargaville villa that Kelly fell in love with as a child. Joe says the villa was a unique
challenge compared to most other house builds. “We needed to keep the traditional villa design authentic while incorporating modern building standards. This meant constantly adjusting building methods used throughout the project to suit the different building materials.” Some of the more challenging 9
features of the build included high ceilings with a 3.6/3.2m stud height, 300mm stud-centred double studs throughout the framing, insulation interference with the window sash weights, two-degree pitched decks with a bull-nose veranda, and the villa’s fretwork and detailing. Mitre 10 MEGA Westgate was the main supplier to the build, and they partnered with both Akarana Timber to supply pre-nailed frames and trusses, and IBS Building Products to supply Egger OS’Brace RAP and OS’Floor flooring. Mitre 10 MEGA Westgate Trade Manager Neil Race says Joe and Kelly were great to work with thanks to their level of organisation and extensive building knowledge gained from previous projects. “There was constant communication throughout the project, which assisted with the smooth supply of materials to site,” says Neil. “I’m proud of the effort put in by the whole team to make this project a success, especially our account manager, Doug Painton, who made sure everything flowed seamlessly.” M I T R E 10
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THE NEW MITRE 10TRADE HUB LET YOUR FINGERS DO THE HEAVY LIFTING
Run your business on the go with the new and improved Mitre 10 Trade Hub. • Faster estimates • Better product searches • Instant access to pricing • Easy to use on all devices • Custom-built for NZ tradies • Free to all Mitre 10 Trade account holders Whether you’re in the office or on location, Mitre 10 has got you covered. To learn more, contact a Trade Account Manager at your local Mitre 10.
Visit mitre10.co.nz/trade
TRADE HUB
GET THE MOST OUT OF MITRE 10 TRADE HUB
Control staff purchasing permissions from your Trade Hub account.
PURCHASING PERMISSIONS Trade Hub makes it simple and easy for you to manage your staff purchasing permissions, no matter where you are, 24 hours a day.
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In-store purchases ■■ Create staff member purchasing PINs by simply clicking on the “Staff” icon at the bottom of the left-hand menu on the Trade Hub page (see below).
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Before you click “Save”, remember to set their permission level to “Editor (Standard Access)”. This means they have full access to Trade Hub except for the “Staff” page. Once you hit “Save”, the selected staff member will then receive an automated email directing them to set up their own secure password.
KEEP YOUR FINANCES IN CHECK See real-time information from your account wherever you are, including your balance, credit limit, and goods on order. ■■ Any invoices generated at your home store will immediately appear in the “Accounts” page of Trade Hub (see below).
Click the “+ Add new staff member” button, enter your staff member’s name and email address, type in their preferred PIN number, hit the “Save” button and you’re done. The PIN is instantly active at your home Mitre 10 store, and allows your staff member to make purchases and pick-up items in-store. To disable a staff member’s purchasing permissions, simply click on their name, hit the “Off” button next to “Store purchasing PIN” and click “Save”. The pin will no longer be active.
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Online purchases ■■ You can give individual staff members access to your Trade Hub account allowing them to create purchase requests for delivery direct to site or pickup at your home store. ■■ On the “Staff” page, select the staff member’s name and hit the “On” button next to “TradeHub access”.
From the “Accounts” page, you can reprint an invoice, as well as generate and print monthly remittances for the invoices you’re paying. You can also save time by giving your accountant or administrator direct access to your invoices through the “Staff” page of Trade Hub. Follow the instructions in the ‘Purchasing Permissions’ section of this article and under “Trade Hub Access”, select “Editor (Invoices Only)”. This means they’ll only have access to the “Accounts” page. For more tips, help and advice, contact your Mitre 10 Trade Account Manager or click on the help icon at the top right-hand corner of the page in the Trade Hub portal.
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AROUND THE REGIONS
We caught up with four NZ Certified Builders (NZCB) regional presidents to get their thoughts on how things are going in their part of Aotearoa, what’s on NZCB members’ minds, and what pressures they face in the upcoming months.
BAY OF ISLANDS / FAR NORTH
WELLINGTON
MARK TODD ABSOLUTE BUILD
ADRIAN REID ADRIAN REID BUILDERS
The boom means we’re all in the same boat – with most members booked for six months or longer. It’s positive, but also requires good organisation and communication with supply merchants, and scheduling everything in advance. Most builders are careful not to over-commit, taking on only what they can. The market up here has experienced a little slowdown in sales, but there are still a lot of enquiries and people moving into the Bay of Islands area for the lifestyle and weather, coming from places like Auckland, Wellington, Christchurch, and even Invercargill. The boom has definitely exposed a shortage of good-quality labour – especially in the sub trades like electrical and plumbing – and it’s mostly guys moving up from Auckland who are filling those shortages. As NZCB members, we’re able to act as a support network – it’s a small community and we make sure we’re sharing resources and not working against each other.
The boom is good, but you have to handle the stresses that come with it. Most members in our region are flat out, with work lined up for at least the next six months, if not more. Some members are expanding, but it depends on the nature of their company and whether they can find the right staff. There are young people making enquiries about apprenticeships, but it’s a lot harder to find qualified staff and people who are capable of running a job. In boom conditions there can be an element of poaching, so finding and keeping staff is also a key concern. It means taking the time to make sure they’re being well looked after. Our members need to plan well during this busy time, accounting for delays with subbies, high prices for products, and delays with Council consents and inspections. Management tools for job, staff, and subcontractor planning
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INDUSTRY VIEWS
OTAGO
SACHA GRAY JUST BUILD IT LTD Work has taken off in the last 12 months – doubling from 2016. House prices have risen significantly and there are lots of new consents, which are slowing down the inspection process. Many locals are deciding that they’re better off renovating, but there are still a lot of new builds. Extended lead times in getting consents, materials, and subbies onsite means we need to be extra organised, but everyone seems to be responding well – catching up with delays and pushing through the amendments quicker. With any boom, there’s a risk of workers jumping ship or being poached. I don’t think it’s as bad as the bigger centres, because around here everyone knows each other, but you still need to look after your guys. There’s also some concern about the numbers of older builders who are exiting the trades and taking a lot of knowledge and experience with them. That issue can be magnified by the fact that it’s often hard to find good labour. Getting passionate apprentices can be a problem – you want good workers, but they also need the right attitude and a desire to run their own business someday.
NELSON
GARRY NOTT TASMAN HOMES Most builders I’ve spoken to are in a similar situation – booked up for at least the next six to 12 months. With workloads increasing, there’s a constant need to find good labour. Personally, I’ve got two apprentices coming to join me: one who is straight out of school and the other from a pre-trade course. Land is one of the issues independent builders are facing in our region, with new sections and subdivisions being tied up by housing group companies. Fortunately, this is becoming less of a problem recently. However, a separate issue is that the Council seems to be under-resourced to cope with the boom. This is creating a lag time for getting someone to come out and do an inspection, which in turn slows everything down. There have been some concerns over the availability of materials, but for New Zealand products this isn’t a problem. In some cases, overseas materials might be a bit harder to source, but as long as builders are well-organised with planning and placing orders, this isn’t an issue.
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CUSTOMER FEATURE
A WHOPPER “MAN CAVE” FOR WANAKA
A 100m2 gallery to show off the owner’s car and motorbike collections is a major feature of this stunning new build. THE BIGGEST “MAN cave” built in Wanaka for many years is a key feature of a 340m² home recently completed by local builders Phil Rogan and Craig Rizzi. The large single-storey new build for a couple relocating from Dunedin includes a 100m² gallery to cater for a keen car and motorbike collector. “It’s definitely the biggest man
cave I’ve ever seen, let alone built, and may well be the envy of every male in Wanaka,” says Phil. The big rectangular space – created to display the owner’s motorbike collection – has a double garage at one end and numerous 400mm wide glazed windows. Phil’s sister Andrea is the partner of the motoring enthusiast, 15
and the build was the first time Phil had built for a family member. “It might have been quite awkward if she’d approached someone else,” he says with a smile. Apart from the man cave, the couple wanted all-day sun, mountain views, and a reasonable-sized section not too far from town. M I T R E 10
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CUSTOMER FEATURE
“IT’S THE FIRST TIME I’VE USED A MITRE 10 KITCHEN AND I GATHER IT’S ONE OF THE BIGGEST ONES THE LOCAL STORE HAS DONE. THE QUALITY OF THE JOINERY AND THE HARDWARE WAS TOP NOTCH AND THE INSTALLER DID A GOOD JOB.”
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“Building for family added a bit of pressure, as I’m going to be in the house quite a lot in the years to come. You want everything to be tickety-boo. “On the flip side, as family, you know each-other well. Issues are sorted out informally with a quick phone call. That makes it easy.” Excavation started at the end of 2016, and construction ran from late January until August. The home features 2500 lineal metres of vertical cedar cladding and a metal tray roof. “A 15m hallway runs through it, requiring control joints in the GIB. It was reasonably straightforward, but not something you come across often.” The house and double garage exist as one big gable-ended section, with the man cave gallery at 90 degrees, linked by a small, flat roof. To cope with Wanaka’s big seasonal 16
variations, the house has a fully insulated slab, R5 insulation in the ceilings and walls, and a ducted heat pump system that takes the house from 8 to 18°C within an hour. Phil was fortunate with the weather during the build, losing only one day due to rain between putting the slab down and having it fully closed in. “It was a dream run. We had quite a lot of rain once we were closed in, but that didn’t affect timelines.” Mitre 10 supplied all the construction materials and fittings and fixtures including a large kitchen. “It’s the first time I’ve used a Mitre 10 kitchen, and I gather it’s one of the biggest ones the local store has done. The quality of the joinery and the hardware was top-notch, and the installer did a good job.” Phil says once he knew Mitre 10
Opposite page: The Mitre 10 kitchen was “top-notch”, says builder Phil Rogan. This page: The mancave gallery and double garage are linked to the house with a small, flat roof. Below: The nearly floor-to-ceiling windows provide light, warmth, and stunning views.
Wanaka was giving him a good deal, using the store as a one-stop shop made his life a lot easier. “Rob, Stu, Jay, Miranda, and the team have great product knowledge because they are dealing with suppliers all the time. We’d just talk with the Mitre 10 reps about any issues, and they’d go back to the suppliers and sort things out. It removed us from the equation and left us to concentrate on building.” A Mitre 10 Wanaka customer for the past decade, Phil says the store has grown as Wanaka has boomed since 2015. “You get the impression the whole town is gearing up for growth, and it’s quite noticeable at Mitre 10 too. They’ve taken on more staff to cater for the increased demand and to keep up with the play.” He expects growth will continue in Wanaka for quite a few more years, and looks forward to more residential new builds like the one wrapped up for his sister and her partner. “It was nice to have a big build that was straightforward and enjoyable. That was partly due to the weather, partly due to Mitre 10, and partly due to us, I suppose!”
FROM FOUNDATION TO FENCELINE... PLUS THE KITCHEN SINK WHEN TALKING ABOUT the key to Mitre 10 Wanaka’s trade growth and award-winning service, Trade Manager Rob Quick has a simple response.
“It’s about offering tradies the total package,” he says. “Not just building supplies and timber, but the kitchen, bathroom, heating, and
flooring too.” “When the plans come in, our team talks through the options with the builder and client – showing them the full range of options on offer and the benefits of ordering through a single supplier.” On the recent build with Phil Rogan, account manager Stu Scott and company rep Jay Sharp teamed up with Mitre 10 Wanaka’s in-house kitchen designer Miranda O’Leary to make the process as easy as possible. “By talking to the builder and client from the word go, you get to make it really simple and easy for them,” says Jay. “We sort out exactly what
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they want, and stay in touch every step of the way – so there are no surprises and the builder and client get a great result.” The store has seen a significant uptake of their kitchen offering year-on-year, and Rob says that’s been due to a growing awareness of what Mitre 10 can provide, combined with a service tailored to builders. “Having Jay and the team involved from beginning to end means there’s no miscommunication, and each builder and client knows all the options upfront. Once they make their choice, then we take care of the rest.”
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OUR KITCHENS COME WITH A FREE DESIGNER
At Mitre 10 MEGA our in-store Kitchen Designers are on-hand to help create the dream kitchen for your client. From planning, right through to installation, we can tailor a stunning kitchen that works within their budget. With a wide range of styles and the best quality kitchen components available in New Zealand, we’ll help create a kitchen that your client will be proud of.
Pop in and check out our kitchen showrooms, and get started on your dream kitchen today.
G E T STA R T E D N OW mitre10.co.nz/kitchens
NELSON MAIL
COMMUNITY FOCUS
HELICOPTER HOUSE TAKES OFF
NELSON’S RESCUE HELICOPTER service got a helping hand after Mitre 10 MEGA Nelson partnered with its local New Zealand Certified Builders (NZCB) association for their latest community project: “Building for the Future”. The project challenged a team of builders from NZCB Nelson to build a three-bedroom home over eight weekends throughout September and October to raise funds for Nelson Marlborough Rescue Helicopter Trust. The 149m2 house was built on a block of land beside the Mitre 10 MEGA Nelson store. Pre-trade carpentry students and their tutors from Nelson Marlborough Institute of Technology were also involved throughout the build, and helped out during the week with vital preparation work such as the fitting of the trusses and external bracing. Mitre 10 MEGA Nelson Marketing Manager Murray Leaning says there were a couple of curly moments throughout the build when trying
NELSON MAIL
A collaborative community effort in Nelson creates a three-bedroom house to be auctioned in a fundraiser for Nelson Marlborough Rescue Helicopter Trust.
to meet deadlines. “It was great to see so many people helping out and lending a hand for this build. We were on such a tight deadline, and we wouldn’t have been able to pull it off without the amazing help and support from the community and local businesses and manufacturers.” A large number of businesses from around the region also helped out by donating building materials, such as Niagara Timbers, who donated the weatherboard; IBS, who donated Eggers OS’Brace Rigid Air Panel; and Freeman Roofing and NZ Steel, who donated the roof. “Because we didn’t know where the house would end up, we built the contemporary bespoke house with materials to withstand all conditions in New Zealand, including coastal environments with extremely high wind zones,” says Murray. The team successfully completed the build in late October. The house was auctioned in December by Summit Real Estate, with the net proceeds from the auction going to the Nelson Marlborough Rescue Helicopter Trust. “The Nelson Marlborough Rescue Helicopter Trust’s funding has dropped recently, and we wanted to help to make sure that they can keep going in our community, saving the lives of those who need this incredible service.”
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WILL KIWIBUILD MOVE THE NEEDLE ON NEW BUILDS?
Gareth Kiernan, Chief Forecaster of Infometrics, looks at the numbers around the Government’s KiwiBuild programme and gives his take on how it could impact the construction industry. THE LABOUR GOVERNMENT’S KiwiBuild initiative to deliver 100,000 new affordable homes over the next decade GARETH KIERNAN CHIEF FORECASTER comes at a time INFOMETRICS when capacity in the residential construction industry is already stretched. Any new homes constructed during the next two to three years will be the maximum possible under these supply constraints, whether the Government chooses to
build during this time or not. The Government has also stated that half the KiwiBuild homes will be built in Auckland. Graph A shows the possible locations for KiwiBuild homes around the rest of the country, based on where population pressures and housing affordability issues are most critical. However, Infometrics does not expect the Government to achieve a rapid increase in the housing supply and alleviate housing shortages. Graph B shows the extent to which other activity will be “crowded out” by the Government’s push to build lower-cost
homes. We estimate that over 80% of KiwiBuild activity nationally will simply be a substitute for private-sector work, with the crowding-out figure likely to be close to 100% in the already stretched markets of Whangarei, Auckland, Hamilton, Wellington, and Nelson. FOREIGNERS’ INFLUENCE ON HOUSING AND CONSTRUCTION Many foreign buyers have been excluded from the property market over the last year, with New Zealand-based banks refusing to lend to people with overseasbased incomes. The Government’s
GRAPH A: ADDING A LOT TO DEMAND PRESSURES Current residential build rates and possible KiwiBuild programme locations WHANGAREI AUCKLAND HAMILTON/WAIPA TAURANGA/WEST BOP URBAN WELLINGTON NELSO N/TASMAN GREATER CHCH QUEENSTOWN-LAKES
0
2,000
Consents, year to Sep 17
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4,000
6,000
8,000
Estimated KiwiBuilds per year
20
10,000
12,000
BY THE NUMBERS
GRAPH B: GOVERNMENT WORK MOSTLY CROWDS OUT OTHER ACTIVITY Annual running consent totals, total areas with KiwiBuild programmes 35,000
30,000
25,000
20,000
15,000
10,000 Mar 17
Sep
Mar 18
Sep
Projections including KiwiBuild
ban on property buyers who are not permanent residents in New Zealand will remove any remaining foreign buyers from the market. The exclusion of foreign buyers will cement the housing market’s downturn between now and 2020. Even so, the boom was ending and house price falls already looked likely over the next three years. The Government’s goal to bring net
Mar 19
Sep
Mar 20
Sep
Forecasts prior to KiwiBuild
Mar 21
Sep
Mar 22
Projections excluding KiwiBuild (private sector work only)
migration down by 20,000 to 30,000 people per year will ultimately reduce medium-term underlying demand for new housing. However, Auckland’s undersupply of housing implies the need to maintain an elevated build rate for several years, even with net migration easing and set to head lower. Alongside the migration cutbacks, the Government recognises the shortage of
construction workers and has proposed a special visa category allowing up to 1,500 tradespeople into the country at any one time. However, this figure is well short of the 20,000 construction professionals that the LookSee Build NZ campaign is aiming to attract and tiny compared to the 55,000 people required to fill job openings in the construction industry over the next five years.
QUICK FACTS
82%
82% of KiwiBuild activity could be a cheaper substitute for new homes that would have been constructed anyway.
There will be 55,000 new and replacement job openings in the construction industry over the next five years.
Potentially 85% of the annual KiwiBuild programme in Nelson/ Tasman is relative to current consent numbers, with figures of 45-60% for Auckland, Hamilton, Tauranga, and Wellington.
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There is an estimated undersupply of 42,000 houses in Auckland, which will outweigh any near-term effects of a 20,000 to 30,000 reduction in net migration.
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Infometrics provide industry, regional, and general economic analysis and forecasts that assist organisations in making planning, policy, and strategic decisions. To find out more visit infometrics.co.nz
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TRANSFORMING THE BUILDING SYSTEM WITH INDUSTRY INPUT
We asked MBIE’s General Manager of Building System Performance, Anna Butler, to share her views on MBIE’s approach to develop the building sector, and what the future could hold.
How does MBIE see things at the moment on the building quality front? There will always be room for improvement, but I believe that the approach we’ve taken to ensure highquality construction in NZ is absolutely fit-for-purpose. We are very clear on the standards and the performance we expect from our buildings. But we also have flexibility for people to innovate and do things in new ways. The last thing we want to do is stifle industry innovation and changes through heavy-handed regulation. MBIE is here to be a partner, not a barrier. There are things the sector needs to do for itself, and it’s pleasing to see examples of the industry owning its own aspirations and desires for transforming the system. What’s an example of the industry helping to “transform the system”? How BRANZ and MBIE are working together to speed up the use of Building Information Modelling (BIM) is a good case in point. BIM involves creating a computer model with real-life attributes, and sharing this information widely to get the best possible design, construction, and operation of that built asset. M I T R E 10
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What guidance do you take from building system changes in other countries? Any regulator needs to stay informed of international trends. MBIE regularly looks to international evidence and how things are working across the globe as we work Which key areas of ideas into our policy ANY SECTOR THAT the system is MBIE and regulation IS CHARACTERISED focussing on? development. BY BOOM-AND-BUST We are deliberately A recent CYCLES WANTS TO GET focussing on the development in ITSELF TO A POINT TO WHERE IT HAS THE system as a whole Australia was the MATURITY AND DEPTH law in Queensland and all parts in it. The TO MANAGE THROUGH which introduced construction sector is THAT KIND OF CYCLE pretty complex, and accountability for – AND THAT’S QUITE you can’t look at any poor building A CHALLENGE. one bit in isolation. products right along We have a particular the supply chain. We’re interest in four key areas: keeping an eye on that development, ■■ Performance standards: Ensuring seeing how it rolls out and whether it buildings are safe and fit-for-purpose. could be right for our building system. ■■ Regulatory and commercial processes: Making them efficient What upcoming trends do you see and effective. for the construction sector? ■■ Building products: Ensuring reliability, Any sector that is characterised by safety, and reasonable prices. boom-and-bust cycles wants to get ■■ People: The right skills and clear itself to a point to where it has the accountabilities for those in maturity and depth to manage through the industry, and protection that kind of cycle – and that’s quite for consumers. a challenge. The impacts of these The BIM Acceleration Committee is doing some great work to promote the benefits of BIM, and we’re starting to see some uplift there. Around 50% of those in the commercial space are using it, and Mike Greer Homes has also picked it up.
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VIEWPOINTS
MBIE’s General Manager of Building System Performance, Anna Butler
cycles should be easier to manage as the sector keeps lifting managerial capability, thinking about business planning, and having strategies for upskilling staff and retaining them during a downturn. Record-keeping is another area we’re all working to improve – but it can be a struggle due to the complexities of the system and the wide range of roles and responsibilities involved. This is an area where technology can be useful, and BRANZ is rolling out an app which
I believe they are trialling with Auckland Council that actually captures building information as they go. So you will hopefully have a streamlined consenting process where people can send in tagged photos of what they’ve done that day to a consenting office, and then we’ve got that permanent record of what a building was looking like at that point as it was being built. What are your priorities for 2018? It’s important we stay focussed at that
systems level, and are always thinking about the big picture – including the four key areas I mentioned earlier. My team is putting a structure in place to help us think in an end-to-end way to identify issues and feed them into a policy process – making sure they are implemented well. A key consideration is the end users of our regulation, and making sure we shape guidance and training material so it is fit-for-purpose and makes change as painless as possible.
MBIE FOCUSSES ON FOUR KEY AREAS ACROSS THE BUILDING SYSTEM MBIE deals with the complexity of the construction sector by focussing on four key areas: ■■
Performance standards: Buildings are safe and fit-for-purpose.
■■
Regulatory and commercial processes: Efficient, effective, not too slow.
■■
Building products: Reliability, safety, reasonable prices.
■■
People: The right skills, clear accountabilities, consumer protection.
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STEPPING UP THE GAME ON SITE SUPERVISION We asked Licensed Building Practitioner Scheme Registrar Paul Hobbs to talk about the reasons behind their recent Practice Note on Supervision and the general industry attitude towards supervision rules.
Paul Hobbs LBP Scheme Registrar
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THE RAPID GROWTH of the building industry over the past year paired with the steady increase in Licensed Building Practitioner (LBP) numbers means that supervision needs to be one of our key priorities. We need to make sure LBPs and builders in New Zealand understand how supervision works in practice and onsite.
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After receiving feedback from a number of industry bodies (along with a few too many complaints), we were prompted to develop a Practice Note on Supervision. It was created as a guide to assist LBPs who are tasked with the job of supervising others, particularly for restricted building work.
SITE SAFETY
THE AIM OF THE PRACTICE NOTE LBPs need to be clear about the requirements for supervision and their role as supervisor. By producing this in a Practice Note format, we are also trying to mitigate poor supervision practices. One of the practices we are trying to improve is remote supervision, where the supervisor has limited contact with the site where the person they are supervising is working. This should only be carried out when the onsite builder has a high skill level, and the restricted building work is not too complex. Remote supervision can be risky and, if it is carried out incorrectly, the LBP supervisor can be held to account by the Building Practitioners Board. COMMON MISCONCEPTIONS A majority of builders believe that supervision is an intrinsic skill that anyone has, but it’s not. Supervision is a learned and harnessed skill, and it has a process that needs to be followed. Another misconception in the industry is that LBPs think they can supervise other LBPs. This isn’t the case;
ONE OF THE PRACTICES WE ARE TRYING TO IMPROVE IS REMOTE SUPERVISION, WHERE THE SUPERVISOR HAS LIMITED CONTACT WITH THE SITE WHERE THE PERSON THEY ARE SUPERVISING IS WORKING.
an LBP cannot supervise another LBP if they both hold the relevant license class. The scheme is an individual accountability model, meaning that all LBPs who carry out restricted building work must provide a record of work. INDUSTRY ATTITUDE I’m pleased to say that feedback about the Practice Note has been positive. We consulted with various industry bodies to get an overwhelming consensus
WHAT TO LOOK OUT FOR
THINGS TO TAKE INTO ACCOUNT
Complexity of the work
Take the time to consider how complex the building work is and if there are any particularly risky details or building consents which may require more oversight and instruction.
Experience of the person being supervised
Think about how skilled the person being supervised is. People with lower skills will require more supervision than those who are more experienced.
Working relationship with the person being supervised
Reflect on your experiences working with them in the past to see if you have a good understanding of their skills, competencies, and limitations.
Location of the work
The physical separation of work sites is something you will need to plan carefully. Although remote supervision is a viable option in certain circumstances, onsite supervision should be prioritised to ensure quality and compliance.
Sequencing
Using a step-by-step approach from the start is always useful to those under supervision.
Timelines of the building work
Consider the risks of tight timelines, as they can often lead to unforeseen issues or rework, which all require careful thought.
A booming construction market
It’s not uncommon for new faces to show up onsite and the use of contract or unskilled labour to increase, but keep it mind that this can affect team continuity and depth of technical ability.
Workplace environment
Factors such as weather, health and safety, plant and tool use, and product or material selection are all things that can affect the level of supervision required.
Communication
Consider how possible literacy or language barriers could impact the quality and compliance outcomes achieved onsite.
on the resource. Building Consent Authorities have also been on board, and are distributing the Practice Note to LBPs in their regions. PROVIDING GOOD SUPERVISION If you are an LBP, you are able to supervise non-LBPs such as apprentices or labourers who are carrying out restricted building work. Above are some things to look out for and consider before stepping into the role of supervisor. 25
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INDUSTRY ADVICE
BRICKS AND MORTAR – KEEPING THINGS EVEN
We asked for advice from the Brick and Blocklayers Federation on what to expect when subcontracting a bricklayer. A GOOD SUBBIE is worth their weight in gold – and while you may feel confident in their work, if you are the main contractor, the responsibility for the quality of their work ultimately falls to you. That’s why it pays to be up-tospeed with what standards to expect from the finished job, and who you can talk to if you don’t see eye-to-eye. We talked to the Brick and Blocklayers Federation (BBFNZ) to find out what standards to expect from bricklayers. BBFNZ set and promote high standards of workmanship for the trade, as well as acting as a watchdog to ensure the maintenance of good practices. Here’s what they had to say. WHAT TO WATCH OUT FOR: MORTAR JOINT WIDTHS BBFNZ have noticed a spike in complaints about mortar joint widths and have advised bricklayers about the importance of using a gauge rod to ensure mortar joints are appropriately and evenly spaced. “The trouble seems to be when the sizing ranges from 6mm to 20mm on the same wall,” says BBFNZ CEO Melanie McIver. “We have seen some veneers that almost make you seasick, which has left us wondering if all bricklayers are using a gauge rod properly to set up their lines.” BBFNZ does accept that there is a little bit of confusion within the industry over the acceptable tolerances of mortar joints. Based on their interpretation of the standards, BBFNZ believe that
a single measurement should not be used to assess whether or not a brick veneer has reached an acceptable level of workmanship quality. Instead, they say the most reliable method of assessing whether the mortar joints are of acceptable widths is to apply the workmanship quality visual test (within ASTM C90) of standing 6.1m back from the veneer (in diffused light) and seeing whether the variance is noticeable. WHO TO CALL IF YOU DON’T SEE EYE-TO-EYE If at the completion of a brick veneer you’re unable to agree with the bricklayer on whether mortar joints are acceptably placed (or if you or the client have any other concerns about the brick 27
veneer), then you can call a Brick Veneer Assessor. BBFNZ have a list on their website of approved, independent Brick Veneer Assessors. These are individual sole traders who are appropriately qualified or experienced and who have agreed to comply with BBFNZ’s code of conduct for Brick Veneer Assessors. BBFNZ has also provided a simple standardised assessment template so that any report provided by a Brick Veneer Assessor is clear and easy for all parties to read.
For more information on the Brick and Blocklayers Federation, visit bbfnz.co.nz M I T R E 10
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UNPACKING THE CORDLESS JOBSITE We asked DEWALT to explain the technology behind their XR FLEXVOLT cordless system.
BY NOW YOU’VE most likely heard about the latest generation of cordless tools that promise the performance and power of their corded counterparts. This development would definitely be a game-changer on the jobsite, but do these tools actually deliver on their performance claims and are they worth the investment? DEWALT answers these and a few other frequently asked questions. DEWALT XR FLEXVOLT The possibility of a cordless jobsite means more convenience and efficiency for builders, as well as less tripping hazards. DEWALT’s XR FLEXVOLT range is a big step towards making this possible – delivering the power and performance required to run a wider range of tools than ever before.
HOW DOES THE XR FLEXVOLT BATTERY WORK? Battery performance is generally measured in two ways: Amp hours (Ah) and voltage (V). In basic terms, more amp hours equals a longer run time, while higher voltage means greater power. In the past, battery manufacturers have had to compromise on both to achieve good overall performance. The XR FLEXVOLT battery is different because it can run at either 18V or 54V by recognising the tool it’s on and adapting its power delivery. When placed on an 18V tool, the battery
THE TECHNOLOGY This range hinges on the new XR FLEXVOLT battery, which uses a world-first convertible battery technology that is not only compatible with DEWALT’s existing 18V platform, but is also capable of amplifying voltage to deliver unprecedented levels of cordless power. M I T R E 10
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will run with three strings of 5 cells in parallel – delivering greater run time. When placed on a 54V tool, the battery switches to 15 cells lined up in series – working together to deliver the equivalent of corded tool performance. WHAT’S THE RUN TIME LIKE? The FLEXVOLT battery comes in two versions – 6.0Ah and 9.0Ah. When used on an 18V DEWALT tool, the FLEXVOLT battery will have either a 6.0Ah or 9.0Ah capacity, and has an extended run time compared to a DEWALT standard 18V battery (2.0-5.0Ah). This means the FLEXVOLT battery will run for longer in typical applications. When used on a 54V XR FLEXVOLT tool, the FLEXVOLT battery will deliver corded tool performance with either 2.0Ah or 3.0Ah of capacity. However, the increased power, higher running speed, and improved performance delivered by
TOOL GUIDE
the FLEXVOLT battery when attached to the 54V tool means the tool will be more efficient, resulting in run times which can be equivalent to (if not greater than) 18V tools in many applications (when used with an 18V battery). HOW DURABLE IS THE XR FLEXVOLT BATTERY? The battery life and durability of the XR FLEXVOLT battery is comparable to our 18V batteries. All batteries are covered by a threeyear warranty, with the third year being subject to fair usage.
released the XR Fast Charger, which has a charge time of 60 minutes, and also the XR Dual Port Charger, which can charge two batteries at a time. WILL THIS BATTERY WORK WITH MY EXISTING DEWALT TOOLS? The XR FLEXVOLT battery is compatible with any 18V DEWALT power tool.
WILL I NEED A NEW CHARGER? The XR FLEXVOLT batteries will plug into our standard DEWALT charger; however, they take longer to charge because they are 54V. We recently
WHAT 54V TOOLS ARE AVAILABLE ON THE XR FLEXVOLT SYSTEM? The range currently includes everything from circular, mitre, slide mitre, table, plunge, reciprocating, and alligator saws, to angle grinders and hammer drills. New additions coming soon to the FLEXVOLT lineup include the Heavy Duty Joist Drill, 8KG 48mm SDS-Max Rotary Hammer, and Dual Handle Paddle Mixer. For more information on the DEWALT XR FLEXVOLT range, talk to your local Mitre 10 store or visit dewalt.co.nz/xrflexvolt
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GIB INTERTENANCY WALL SYSTEMS
GIB has the solution to some of the challenges involved in constructing terrace homes.
INTERTENANCY WALL SYSTEMS FOR TERRACE HOMES Attached and terrace-style homes are increasingly popular throughout New Zealand, and can create some unique challenges for builders when compared to traditional standalone dwellings. M I T R E 10
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One such challenge is the use of intertenancy wall systems. These are the dividing walls between dwellings that are required to meet fire safety and noise control performance criteria under the NZ Building Code. GIBÂŽ produces a range of four 30
Intertenancy Barrier Systems for Terrace Homes, and recommends exceeding the minimum noise-control performance criteria when installing intertenancy walls, as this will usually lead to a more enjoyable and relaxing environment for occupants.
TECH GUIDE
GIB INTERTENANCY BARRIER SYSTEMS FOR TERRACE HOMES Introduced in November 2016, these Intertenancy Barrier Systems have become a common sight on terrace home builds due to their high performance, cost effectiveness, and ease of installation. GIB® has provided some tips below for installation, which builders may find useful. Placement of GIB Wall Clips ■■ Two wall clips (one each side) need to be placed no more than 600mm below the top of each GIB® H-Stud. Placing the clips any lower will require them to be relocated to within the accepted guidelines. ■■ NOTE: Using more than one wall clip on each side is not accepted practice, as it may reduce the sound transmission class (STC) performance achieved by the system. Installing damaged GIB Barrierline ■■ It can be difficult to remove and replace a damaged sheet of GIB Barrierline once it has gone up. If you spot a damaged sheet during the installation process, then call the GIB® helpline (0800 100 442) to arrange delivery of a replacement.
Fire door installation ■■ While technically possible, it’s not a good idea to install a fire door in the Intertenancy Barrier System. GIB® is unaware of any fire door suppliers who have tested their products in the Intertenancy Barrier System, and also note that installing a fire door would significantly degrade the STC performance of the system. ■■ If a fire door is needed, GIB® recommends switching the specification to a more traditional type of intertenancy wall, such as double frame.
Wall linings ■■ Wall linings play an important role in the primary FRR (Fire Resistance Rating) and STC performance delivered by the systems. ■■ Breaks or penetrations in the wall linings that exceed stated maximums will compromise the published FRR and STC performance. ■■ The images below show a stair stringer and a bath cradle adjacent to the intertenancy wall. In both cases, insufficient gap has been left to allow the wall linings to run past.
For more information on GIB® Intertenancy Barrier Systems, visit gib.co.nz 31
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ASK ABOUT OUR BUILDING PARTNERSHIP PROGRAM
SCHLAGE SENSE™ SMART DEADBOLT
Our smartest lock just got smarter.
The Schlage Sense™ Smart Deadbolt’s Bluetooth® technology now allows the pairing of the lock with an Android phone, as well as with iPhone®, iPad® or iPod touch®. Users can add and remove codes, lock and unlock the door, and check the lock’s history when within Bluetooth® range. A Virtual Key can also be sent via text message to guests or contractors. In most cases, Schlage Sense™ can be retrofitted in minutes with only a screwdriver.
BCITO
WHAT’S IN THE TOOLBAG TO GROW THE WORKFORCE?
We spoke with Building and Construction Industry Training Organisation (BCITO) CEO Warwick Quinn about issues contributing to the industry’s labour crunch and how they’re being addressed. OVERVIEW OF LABOUR SHORTAGE Apprentice numbers have grown 10% over the past eight months, and we are at record levels. This is positive, but it’s not enough. MBIE estimates we’ll need around 56,000 workers in the construction sector over the next five years – and we estimate about half of those need to be tradequalified. We’re on track to produce about half that amount, so the number of apprentices currently training is well short of what is required. FACTORS LIMITING LABOUR GROWTH At the moment, only 10% of construction companies are able and willing to train apprentices at
BCITO CEO Warwick Quinn
any one time. The majority of construction companies in NZ simply have little or no capacity to train apprentices, with 91% of companies employing only five staff or less, and 65% operating as sole providers. Additionally, construction is more specialised now than ever before, which means that many companies don’t have a need for a traditional 33
four-year apprentice, and can’t offer those apprentices the full scope of work required to complete that sort of qualification. OFFERING MORE SPECIALISED APPRENTICESHIPS We’re working with NZQA and industry groups to trial a specialist apprenticeship model, which offers qualifications and M I T R E 10
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BCITO
programmes that are more closely REDUCING THE RISK TO EMPLOYERS aligned to niche contractors such as In the first 18 months of an apprenticeship, window and kitchen installers. Some some 40% of apprentices change their will be new qualifications altogether, employer or trade, which is disruptive to while others might be part of an existing all involved. While BCITO re-signs half of industry specialisation. This should that 40% and they eventually settle into increase the a long-term role, the opportunities churn still creates for businesses a drag on resources. WE WANT TO IMPROVE to take on an To address this, we THE WAY WE PROFILE OUR apprentice, want to improve the APPRENTICES TO BETTER because there way we profile our UNDERSTAND THE RISK FACTORS WHICH MIGHT will be a closer apprentices to better CAUSE AN INDIVIDUAL alignment of understand the risk TO CHANGE EMPLOYERS skills and factors which might OR TRADES IN THE FIRST business needs. cause an individual COUPLE OF YEARS. The option to change employers to complete or trades in the first a shorter specialist couple of years. We qualification creates more flexibility are partnering with the NZ Council for for jobseekers to train according to Educational Research to help us identify specific industry needs, increasing these risk factors – which will eventually both employability and incentive allow us to provide more targeted to train – especially during the pastoral care and better support downturn. The new model is designed for employers. to complement the existing traditional four-year apprentice programmes, For more information about BCITO and apprentices can stack these and their upcoming initiatives, visit micro-credentials to earn a full bcito.org.nz apprenticeship over time.
OPPORTUNITIES FOR GOVERNMENT SUPPORT We’re currently asking the Government to do a number of things to ensure vocation educational training is considered a viable career option. Initiatives include: Review the industry training framework to make it more flexible and responsive ■■ Raise the profile of vocational learning so that it compares more favourably with academic pathways ■■ Allow ITOs to train ■■ Direct employer funding support for those businesses that train apprentices ■■ Use Government procurement as an incentive to train by mandating a training component for companies who are successful in winning Government construction contracts ■■ Have better construction labour force planning so we don’t constantly over- or under-train ■■ Encourage more diversity in our work force; ■■ And ensure that immigration is complementary to our training system and not seen as the primary skills development option. ■■
OVERVIEW OF CORE CONSTRUCTION SECTOR EMPLOYMENT
17%
Auckland accounts for 33% of employment in the Core Construction sector, followed by Canterbury (19%) and Wellington (9.4%)
of employees in the Core Construction sector are female, up from 13% in 2000
116,386
Employment in the Core Construction sector grew by
people were employed in the Core Construction sector in 2016
33% 9.4%
19%
6.0%
between 2015 and 2016
The Core Construction sector contributed $6.53 billion to New Zealand’s GDP in 2016. That’s 2.9% of NZ’s total GDP
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Around 56,000 people are needed in the sector between 2017 and 2021 to meet employment growth and replacement demand
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NAIL THE WHOLE JOB WITH US From the foundations to the fenceline you can get the whole job done with Mitre 10. We can supply and deliver your complete build, sort out any special orders, and help make the whole job go as smoothly as possible.
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