Construction material shortages, price hikes plague building industry
The rising cost of construction materials shows no signs of slowing, as widespread shortages of key products continue to plague the industry.
Tradespeople and building suppliers have told RNZ they are struggling to get their hands on basic materials such as exterior and interior cladding, which is causing long delays that are doubling some build times.
Combined Building Supplies Co-Coperative chairperson Carl Taylor said the delays were the result of increased demand as residential building consents hit record highs, a scarcity of labour needed to make the materials and a shortage of the materials needed to make specific building products.
Taylor singled out GIB plaster board, saying its lead time was now hitting May or June.
"If we can't get the materials we can't work, plain and simple," he said.
Fletcher Building's products division confirmed GIB plaster board was in hot demand and it was keeping customers informed about any timeframe changes to assist them getting the products they need.
Carl Taylor said the ongoing delays for a wide range of products was stretching the build time for an average house from five months to 12.
"We are aware of jobs where the builders will stand their frames and they are having to wait another three or four months until they can get their cladding, or get their roofing, or get their windows - and that's just in the residential sector.
The latest Price Index data for the December quarter revealed constructions costs had jumped by 16 percent in the past 12 months.
Taylor said Combined Building Services was forecasting further price hikes of 15 percent across all products in the coming year.
Tradespeople would wear the costs in the short-term but it was inevitable that the price increases would be passed on to consumers, Taylor said.
Managing director of building supplies merchant Build Link Simon Burden said he did not think much could be done about the shortages other than different parts of the supply chain communicating clearly with one another to manage expectations.
"If we were to have a set of plans to come over our desk at one of our stores right now, you've got to be realistic with the builder or the homeowner who's wanting to build that house [about how long it would take]."
Carl Taylor said clear communication within the industry was critical but added that he thought the government needed to have a constructive look into how the supply issues could be addressed.
"There are a whole lot of other products, all around the world, we could use. The problem is to bring in a product into New Zealand it has to either be codemarked or it has to go through the BRANZ (Building Research Association of New Zealand) and that takes a really long time."
That could be anywhere between 12 to 24 months for a product to go through testing before it's available off the shelf, Taylor said.
"That system almost needs to be fast-tracked so other companies on the other side of the world can actually bring their products here with ease.
"But on the same token, the products still have to be tested and I know there's some time around that, but it is something that could be looked at."
The rising cost of construction materials shows no signs of slowing, as widespread shortages of key products continue to plague the industry.
Tradespeople and building suppliers have told RNZ they are struggling to get their hands on basic materials such as exterior and interior cladding, which is...
The rising cost of construction materials shows no signs of slowing, as widespread shortages of key products continue to plague the industry.
Tradespeople and building suppliers have told RNZ they are struggling to get their hands on basic materials such as exterior and interior cladding, which is causing long delays that are doubling some build times.
Combined Building Supplies Co-Coperative chairperson Carl Taylor said the delays were the result of increased demand as residential building consents hit record highs, a scarcity of labour needed to make the materials and a shortage of the materials needed to make specific building products.
Taylor singled out GIB plaster board, saying its lead time was now hitting May or June.
"If we can't get the materials we can't work, plain and simple," he said.
Fletcher Building's products division confirmed GIB plaster board was in hot demand and it was keeping customers informed about any timeframe changes to assist them getting the products they need.
Carl Taylor said the ongoing delays for a wide range of products was stretching the build time for an average house from five months to 12.
"We are aware of jobs where the builders will stand their frames and they are having to wait another three or four months until they can get their cladding, or get their roofing, or get their windows - and that's just in the residential sector.
The latest Price Index data for the December quarter revealed constructions costs had jumped by 16 percent in the past 12 months.
Taylor said Combined Building Services was forecasting further price hikes of 15 percent across all products in the coming year.
Tradespeople would wear the costs in the short-term but it was inevitable that the price increases would be passed on to consumers, Taylor said.
Managing director of building supplies merchant Build Link Simon Burden said he did not think much could be done about the shortages other than different parts of the supply chain communicating clearly with one another to manage expectations.
"If we were to have a set of plans to come over our desk at one of our stores right now, you've got to be realistic with the builder or the homeowner who's wanting to build that house [about how long it would take]."
Carl Taylor said clear communication within the industry was critical but added that he thought the government needed to have a constructive look into how the supply issues could be addressed.
"There are a whole lot of other products, all around the world, we could use. The problem is to bring in a product into New Zealand it has to either be codemarked or it has to go through the BRANZ (Building Research Association of New Zealand) and that takes a really long time."
That could be anywhere between 12 to 24 months for a product to go through testing before it's available off the shelf, Taylor said.
"That system almost needs to be fast-tracked so other companies on the other side of the world can actually bring their products here with ease.
"But on the same token, the products still have to be tested and I know there's some time around that, but it is something that could be looked at."
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