Building industries worldwide are facing a huge shortage of supplies, whether it be roofing, windows, screws or plasterboard. This issue is accompanied by price increases of up to 150% and labour shortages across the industry. As a result, building firms are facing reduced productivity and the ability to book jobs and continue cash flow has been affected. According to the Ministry of Business Innovation and Employment, over 115 building companies in Aotearoa New Zealand were liquidated by June of 2022. This problem also greatly impacts the efforts being made to solve the national housing crisis, putting further pressure and delays on this process.
Material shortages began as a result of the COVID-19 pandemic and have continued in the years since, with predictions saying these issues will only continue to increase in the years to come. This began with factories closing due to lockdowns; interest rates then dropped significantly, causing house markets to boom as people secured low rates to build or buy homes. Such an increase in demand added pressure to remaining factories, forcing price increases. Other factors affect countries worldwide, such as Brexit complications, more people wanting to build in rural areas, and government housing schemes.
In New Zealand, there has been an increased building material demand, with many dwellings needed to be constructed in New Zealand. Many of these dwellings are either new-builds to accommodate the ever growing population rates, or renovations to repair the existing homes which were built at lower housing standards. As a result of such a growing demand, there have been many price increases due to material shortages. Recently, this has had the effect of making the building industry slow down with much unpredictability in regards to timing and pricing.
To combat these issues here at Korben Homes, we do our best to lock in pricing and secure materials as far in advance as possible, enabling us to prevent major delays in the building process. We also ensure to keep up regular and transparent communication with clients; being realistic with them about time frames and costs is the best way to ensure satisfaction in these unprecedented times. Furthermore, planning as far ahead as possible will always ensure the best outcomes are possible, with the avoidance of any potential delays from the industry.