Building supplies: Some low-hanging fruit, but no quick fixes
In the first of a three-part series on the building supplies sector, NBR looks at the implications of rampant build cost inflation and efforts to nail down the problem.
What’s at stake:Rampant build cost inflation has been largely blamed on the cost of building products and an uncompetitive, monopolistic construction sector landscape. There have been moves to fix that and the issue is firmly in the sights of the coalition Government.
Background: Building material costs ratcheted up dramatically over the past few years, driven by logistics issues and a pandemic-induced residential building frenzy. Quarterly price gains were recorded at more than 10% last September – sparking calls for government intervention and a new sourcing model.
Main players: Building and Construction Minister Chris Penk, Chris Bishop, Fletcher Building, PlaceMakers, Winstone Wallboards, Simplicity Living, Shane Brealey, Sam Stubbs, Shamubeel Eaqub.
New Zealand’s construction sector last year generated $98.3 billion in sales.
Almost seven of every 10 dollars, about $69.6b, went to materials and service providers. Just under half of that, $32.4b, was spent on construction procurement.
A newly released snapshot of the construction sector,
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What’s at stake:Rampant build cost inflation has been largely blamed on the cost of building products and an uncompetitive, monopolistic construction sector landscape. There have been moves to fix that and the issue is firmly in the sights of the coalition Government.
Background: Building material costs ratcheted up dramatically over the past few years, driven by logistics issues and a pandemic-induced residential building frenzy. Quarterly price gains were recorded at more than 10% last September – sparking calls for government intervention and a new sourcing model.
Main players: Building and Construction Minister Chris Penk, Chris Bishop, Fletcher Building, PlaceMakers, Winstone Wallboards, Simplicity Living, Shane Brealey, Sam Stubbs, Shamubeel Eaqub.
