The Central App

‘Perfect storm’ for building industry

The Central App

Maddy Harker

20 June 2021, 6:06 PM

‘Perfect storm’ for building industryPricing for building is “going through the roof”, says Chris Leith of David Reid Homes. PHOTO: Wanaka App

Wanaka tradespeople are feeling the pinch as building supply shortages and escalating prices make building and renovating increasingly difficult. 


Combine those problems with a shortage of tradies, throw in a housing boom, and the result is “a perfect storm,” David Reid Homes Wanaka & Central Otago co-owner Chris Leith said.


“Pricing is going through the roof,” Chris said. “We’re getting price increases monthly on certain products, and being told to expect increases of three to five per cent each month for the next three months.”



In the past, Chris said, prices for supplies were likely to change every six months to a year, but for some products now “quotes last ten days if you are lucky.”


Supply-side issues are another ball that must be juggled by stressed construction industry professionals, and while some delays in the sector are normal - up to eight weeks for a lot of things, Chris said - those wait times are dragging out much longer. 


Chris Leith of David Reid Homes Wanaka and Central Otago PHOTO: Supplied


“A lot of the time what was a six week wait might be 12 now,” Chris said, adding that for some products, merchants are now unable to give any estimated arrival time at all, and others - like cedar - just aren’t available at all. 


This means a huge amount of behind the scenes work communicating with merchants and suppliers, balancing budgets, and managing expectations with clients whose first options are often unavailable.


“I think a lot of people are getting to the point where they have had enough as well - stress levels are pretty high,” Chris said. 


Chris said he thought shipping was one of the main issues causing the problems, and Covid-19 related shortages have also played a role.


Hayden Wilkinson, owner of HDW Builders, puts the building supply shortage down to a number of factors, including changes in customer preference for certain products, but believes there are wider issues.


Hayden Wilkinson says there’s not enough manufacturing in New Zealand to keep up with the rate of building. PHOTO: HDW Builders


He told the Wanaka App this is the highest level of building activity he’s seen in 20 years in the industry.  


“This is a new level of activity. There’s just not enough manufacturing going in New Zealand to keep up with the amount of building going on,” he said.


Hayden said most general building products used in New Zealand are manufactured here, and he’s heard that sawmills are “flat out, and as soon as the stock is made available it’s gone”.


“We’re quickly starting to learn that you can’t take anything for granted,” he said. “Common things that you wouldn’t think twice about aren’t available, and the suppliers don’t know when they’re going to be available.”


Like Chris, Hayden said it was stressful at times, and he has to be “super organised” and communicate the issues clearly with clients, and allow for price fluctuations when quoting for jobs.


But because supply issues are currently plaguing so many industries, the general public are becoming more aware and understanding and aware of the issues, which Chris said goes a long way.


“At the coal face there isn’t a lot we can do about it apart from constant communication with our suppliers and merchants,” he said. “But if people can be flexible that really helps us.”