The Premium Debate: Subscribers debate the state of the building and construction industry

The “relentless” rises in the prices of building materials put the industry under pressure. Photo/Getty Images

OPINION

Builders face further rises in material costs this year – sparking fears that ‘relentless’ price rises could topple more construction companies and make building homes unaffordable.

A list of price increase notification seen by NZME

If the MBA is correct that construction costs have gone up 34% over the last year and are likely to rise 20% more next year, I guess that’s mainly due to issues global supply chain and shipping. Not to mention the increases in gas and interest rates around the world. I’ve been based in China for 20 years and in a different industry, but we’re going through it all. I suspect most things made for the construction industry around the world also come from here, and with the difficulties with the ongoing zero-Covid policy, the hit in New Zealand is unlikely to improve . The annual GDP target forecast here was recently reset to 5.5% from 8%, but could stabilize at 3-4% by year-end. This is a gigantic blow for an economy of this size. You should see what the real estate market looks like here for developers for example. It’s actually pretty ugly! It reminds me of the old adage on Wall Street. When someone sneezes, the whole world catches a cold. And well to manufacture in China is to sneeze!
-Marcus H

About admin

Check Also

Use technology to mitigate risk and avoid litigation

Industry-specific software allows field teams to carefully record project progress and increases visibility for the …