Simon Crawford from Whangārei's Bella Homes says business is slowing and it would be great if the government could help by bringing forward some of its major projects. Photo / Michael Cunningham
Simon Crawford from Whangārei's Bella Homes says business is slowing and it would be great if the government could help by bringing forward some of its major projects. Photo / Michael Cunningham
Northland builders are riding out a downturn in construction and say they would love to see the Government help to smooth out the industry’s boom-bust cycle.
The number of new building consents in Northland, for the year ending May, is down 29% when compared with 2023.
The biggest concern about the downturn is losing experienced builders who are hard to replace, said Darrell Trigg, managing director of Northland commercial building company Trigg Construction and director of the Registered Master Builders Association.
“People bail out to other industries, or move to Australia or other places [in New Zealand]. It takes four years to train someone and another couple of years for them to get really good experience.
“It’s quite a difficult conundrum - all of us are really committed to training but we can only train when there’s something to do.”
Darrell Trigg, Registered Master Builders Association director, says the biggest problem with the downturn is builders leaving the industry.
Trigg said for a number of years, the industry has been calling on the Government to smooth out the boom-bust cycle by bringing forward some of its own projects when there is a gap.
In Northland, upcoming Government projects include the $759 million Whangārei Hospital redevelopment, Project Pihi Kaha. The key part of the project, the acute services building, is due to be built between 2026 and 2030.
Master Builders chief executive officer Ankit Sharma said the project will be significant, as it is expected to add $233m to regional GDP and create more than 2700 jobs.
Other big projects include Kainga Ora’s $146M-a-year Northland build and an extension to Kaikohe District Court.
Simon Crawford from Bella Homes agreed building work is slow in Northland and a project such as the Whangārei Hospital redevelopment would help the industry significantly if it could be brought forward.
“A big piece like that would employ local builders - if residential is quiet those builders will apply and it keeps them in the trade.”
Crawford, who is the Northland representative on the Auckland Master Builders Association board, said the current downturn was particularly hitting contract builders who work for group housing outfits.
Sub-trades, such as electricians and plumbers, are also noticeably quieter and chasing work, he said.
With no problems with the supply of building products, all of this means customers who are ready to build can get their jobs done quite quickly, he said.
The residential market in Auckland is starting to pick up again, which is good news for Northland as the area usually follows behind the super city, Crawford said.
Crawford says Northlanders ready to build can get their projects done quite quickly. Photo / Michael Cunningham
Northland MP Grant McCallum planned to talk with Housing Minister Chris Bishop about smoothing out some of construction’s ebbs and troughs when he comes to Northland in July.
McCallum said the Government also wanted to make it easier for people to build more houses, to help fill the housing deficit.
The coalition Government has also changed rules to make it easier for Kiwi builders to use building materials approved by overseas jurisdictions, McCallum said.
Matt Hatchard from Russell company Hatchard Builders and NZ Certified Builders said while some Northland builders may be experiencing a down-turn, he is still seeing demand for high-end work.
While he agreed bringing Government projects forward could help the industry, he thought a bigger help would be removing the administration builders have to do - such as health and safety administration.
But some builders are concerned about taking on the liability for the building, and he warned it won’t be cheap for people, given they can’t build it themselves.
Hospital redevelopment staged over many years
The $759m Whangārei Hospital redevelopment, which addresses many years of underinvestment, will be done in stages over several years, a Health NZ | Te Whatu Ora spokesperson said.
The whānau house will be completed this year and the child health centre, due to be finished in 2026, is going through a construction tender.
The building timeline will be confirmed in 2026 when the detailed design is released, the spokesperson said.
Kaikohe court to be extended by 10%
The Ministry of Justice has already seen strong interest from contracting firms in a project to extend Kaikohe District Court.
The project will see a 131 sq m extension built at the back of the existing building, extending the court by 10%. Water storage will also be increased to help during droughts, said deputy secretary – corporate services Kelvin Watson.
The ministry is going through a tender process at the moment so the budget remains commercially sensitive, he said.
Building work is expected to start in September and the work will take about nine months. The court will remain open during the build and work may need to be staged, Watson said.
More social houses being built by Kāinga Ora
State housing landlord Kāinga Ora is continuing with its $146m-a-year build programme in Northland.
In March, the Northern Advocate outlined plans for 400 new homes in the region. Since then, Kāinga Ora has added more projects including 71 houses undergoing resource consent:
six homes Steere Pl, Tikipunga
32 homes McKinnon Cres, Otangarei
18 homes Kamo Rd, Te Kamo
15 homes Donald Rd, Kaitāia.
Construction has now started on the 95-home Kauika Rd development in Whangārei’s Avenues, which is due to be finished late 2025.
Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.
