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Sept 2015

Building Activity

The year is flying by and I think all of us are busy. The statistics being reported support the activity we see and feel. July for example was our third best ever month for sales? Considering it’s the middle of our winter this is almost unheard of. The ability of supply chains such as timber, processing consents, delivering goods, and measuring etc are limited in NZ. We are, when all said and done, a country of 4.5m people, we have limited resources. No amount of rhetoric can make things happen faster without a lot of preparation. Planning and thinking are what we need, not jumping on quick fix solutions. We have limited resources to build in NZ and the most limited are skills and those seem to get forgotten.

Furniture Round Up

Black Walnut Bench insert by The Woodsmiths

For many of us the niches we operate within are as important as the headline numbers, thus the actual headline numbers can be miss leading. In the arena for supply of weather boards for example the markets range from multi million dollar homes to the cheap and cheerful low cost homes. Auckland is very busy, the strong immigration figures are driving this to a fair extent.

The following is an interesting extract from Tony Alexander's Sporadic this week. This is not something we see impacting us as the low cost homes are not a target market for us.

"Another drag, almost, is construction in Christchurch. The reconstruction period took longer to get started than we all thought, but it seems to have peaked earlier than we were all thinking. An over-supply of houses appears to have developed with part of that being a price mismatch between what earthquake-displaced people can afford and the new houses which have been built. Up until recently we thought rising commercial building would more than offset the residential construction decline which is now underway and likely to persist for maybe three years. But the feedback coming out of the commercial sector is that construction costs are so high and so many businesses have either got comfortable outside the CBD or have already signed up to new premises in the inner ring outside the CBD that they are unwilling to pay the prices developers need in order to go ahead and get their projects rising from the earth. And with the infrastructure rebuild over 75% done probably the best we can expect is a plateau in Christchurch construction activity in the coming year. The risk however is that the city becomes a negative contributor to GDP – which is not a bad thing necessarily, it is just happening sooner than most of us were expecting, by around two years. "

Previous ArticlePrevious Article
Current Feature Stories
September 2015
/imagesdb/Issue/f324da3f-5237-4fff-9368-59fd36a53857.jpgStaff Updates
A few changes and additions all in Auckland.
/imagesdb/Issue/c7e6abb8-eded-4671-a075-6c365ccfacf7.jpgBlack Butt decking a new non tropical choice
Black Butt decking provides a non tropical choice to build decks and still use a class 1 durable hardwood.
/imagesdb/Issue/d75b42f9-772a-43f1-a11b-6719e30b728c.jpgSupply chains
Supply chains are groaning at demand for key items. The growth in demand after the GFC has been slow and has seen a large number of sawmills here in NZ and elsewhere close and go broke. This is leading to shortages in supply as the remaining suppliers struggle to cope.
/imagesdb/Issue/b5dc470d-607c-417f-8cf4-bd6d27a1af74.jpgBuilding Activity
Data we see coming through suggest continuing demand for building materials and weather boards as an example are flying out the door. So prospects for Building Supply merchants should be okay.
Current Feature Stories
June 2015
/imagesdb/Issue/58a303f2-75b4-4cc6-b80c-95e5f7f2a6c0.jpgAustralian Hardwoods same same but different
In our quest to find hardwood's that are non tropical and suitable for use outside in NZ we are re focusing our attention on some of the Australian hardwoods. in particular we are looking at Black Butt.
/imagesdb/Issue/42027bbc-6b60-4efc-920b-a9466c61a538.jpgStaff news
A few changes in staff. The good news is a full crew in Christchurch and we have found great new staff to replace those leaving.
/imagesdb/Issue/36fabf7e-2add-44b1-9bfb-003a902fb70c.jpgSupply side developments
Lots happening with our supply chains and costs relating to each have their own story.
2015 has so far seen record sales levels but increasing pressure on margins as we see desperate sellers. Contradictory on so many levels but a fact. We ended the financial year 31st March with 2 record months in a row.
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TIMSPEC (Timber Specialist Limited) PEFC & FSC Certified Products are available on request
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