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Is NZ too reliant on too few suppliers in the building trade?

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  • Is NZ too reliant on too few suppliers in the building trade?

    The Carter Holt Harvey debacle over the lack of timber has been described as a 'comedy of errors'.

    You certainly have to laugh at the timing of it. Everything is hinging on more new builds and there's a lack of timber. While it will probably be resolved quickly it does suggest we may be too reliant on too few suppliers - i.e. is there a monopoly on supply and that's why materials are overpriced?

    Well I missed this on - Labour to get Commerce Commission to look into monopoly of supermarkets and building supplies sectors

    From the link =

    • Supply of some building materials is highly concentrated – two companies control 85 percent of the supply of concrete, three companies control 85 percent of the supply of glass wool insulation, one company controls 94 percent of the supply of plasterboard, and there are only five major building materials retailers.

    cheers,

    Donna

    A shortage in supply of timber for building projects is being labelled "a comedy of errors" that's going to cause stress and hardship for small-time builders.
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  • #2
    Timber is only one thing. I heard from a building supplier that there were supply constraint holding up jobs because of shower trays, sink benches and toilet pans. Possibly other items, too.

    As comrade commissar Cindy and her socialist sycophants never bother with the advice of their policy analysts, they'd certainly not bother to check with the building industry before shooting off their mouths with the latest bit of stupidity labelled 'housing policy,' now, would they?
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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    • #3


      Good opportunity there, for some local manufacturers to fill in the gaps.

      Hint hint.

      Or some good old Kiwi ingenuity to provide alternative solutions.
      Last edited by McDuck; 03-04-2021, 10:02 AM.

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      • #4
        Originally posted by Perry View Post
        Timber is only one thing. I heard from a building supplier that there were supply constraint holding up jobs because of shower trays, sink benches and toilet pans. Possibly other items, too.

        As comrade commissar Cindy and her socialist sycophants never bother with the advice of their policy analysts, they'd certainly not bother to check with the building industry before shooting off their mouths with the latest bit of stupidity labelled 'housing policy,' now, would they?
        I feel you. They're really stupid.

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        • #5
          Building supplies shortages visible at the hardware store. I wonder how many developments are cutting corners or halted indefinitely due to supply shortages?

          Mitre10 Mega - has very few paving bricks. Countries are building their way to economic recovery e.g UK CHH on behalf of NZ clearly didn't stockpile enough product and prices are hiking. We may not be far off needing $7K per sqm or more for a standard home build. Expect a rise in floorplans sizes of 120 sqm or less.

          What interesting times we live in.

          cheers,

          Donna

          SEARCH PropertyTalk, About PropertyTalk

          BusinessBlogs - the best business articles are found here

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