Demand puts pressure on pay

Grant Kedian says there's a demand for skilled trades.

Tauranga's building sector is proving to be the city's powerhouse, a report reveals.

However, an industry expert believes wages will have to rise as tradespeople press for higher pay.

Statistics New Zealand figures show 300 more people got jobs in construction last year compared to 2012 and it was the fastest growing industry in the Bay.

Other super sectors included rental, hiring and real estate, IT and transport, while there were 130 more people employed in administration roles last year than there were in 2012, and an increase of more than 90 more people employed in transport and warehousing.

Tradestaff northern operations manager Grant Kedian said economic trends in Tauranga were closely linked to the construction industry and it was in "growth mode".

There had been a distinct increase in commercial construction and significant movement in residential building in Papamoa East and The Lakes, he said.

Carpenters were in the highest demand Mr Kedian said followed by candidates with steel tying experience, hammer hands and trade assistance across all trades.

"We are placing chippies with residential or commercial construction experience as fast as we can find them."

However, pay rates in the Bay were expected to lift as companies could no longer rely on Tauranga's lifestyle image, he said.

"There is an economic reality - it comes down to supply and demand. And as we head back into a candidate-short market, wages become an increasing factor to attract and hold onto staff."

Jobs in electricity, gas and waste services also experienced modest growth, according to the Statistics New Zealand report.

Across the wider Western Bay of Plenty, agriculture, fishing and forestry have the most jobs, but the number employed in those sectors dropped from 4550 in 2009 to 3680.

According to the latest Ministry of Business, Innovation and Employment Jobs Online report, the number of skilled job vacancies advertised in the Bay of Plenty increased by 7.1 per cent over the year.

NZ Transport Agency's Bay of Plenty acting highway manager Andrew Scott said more than 2000 people had been involved with the Tauranga Eastern Link project with a peak of 280 people on site at any one time.

Other big projects were the $56 million Hairini Link design set to start next year and the $102 million Bayfair to Baypark project expected be approved in 2016, Mr Scott said.

Shades Trucking operations manager Alan Coddington said they were not feeling as confident as they had in the past due to the lower dairy payout.

They had noticed a significant decline in the amount of farm machinery it was transporting that made up 33 per cent of its business.

Tauranga Hire manager Richard Baird said it established 10 months ago and it was "growing by the day."

Ross Stanway, chief executive of Realty Services, which operates Bayleys and Eves said it had experienced growth in the number of sales people coming into the company.