Northland's building industry booming again

Things are improving, says builder Michael Jordan

Northland's construction industry is booming with building consents reaching a seven-year high in New Zealand.

However, with the high has come a workforce shortage.

Statistics New Zealand released that new residential building consents reached a seven-year high in New Zealand in November 2014.

In Northland, October and November saw 149 consents issued, valued at $42 million - a 19 per cent increase on the same period the previous year - and the highest for the two months combined since 2007.

There were 85 consents issued in October 2014, which is the highest monthly total since June 2010. Whangarei saw the most consents over the two months with 76 issued.

The Far North had 42 consents, and Kaipara 31.

Barry Trass, Homeworld Design and Build owner and a member of the Whangarei Economic Development Group, said he is "at capacity" but is looking forward to taking on apprentices in the future. He said it is great to see more confidence in the region.

"We've been waiting for it to happen for a while," Mr Trass said.

Whangarei builder Michael Jordan said he had an increase in enquiries during October and November.

"Things are improving."

Last year Northland had almost 100 apprentices start building or construction apprenticeships.

Eighty apprentices signed up in Whangarei, while 19 apprentices signed up in the Far North, the Building and Construction Industry Training Organisation said.

Mark Dobbs, Certified Builders Association Northern Board Director, said the industry needs more young people coming through as there is now a workforce shortage.

"We're all busy, I haven't heard of any builders scratching around for work," he said.

Kyran Vaniperen, a building apprentice for Coastal Homes in Doubtless Bay and the runner-up Registered Master Builders Carters 2014 Apprentice of the Year, believed the large amount of available work was drawing people to the industry.

"Things are really picking up at the moment," he said.

"We only had the statutory days off this year because we were so busy."

Mr Dobbs said commercial construction is slowing down, but Ruakaka, One Tree Point, and the Tutukaka Coast particularly are seeing growth in residential buildings.

He said the boom is due to a variety of reasons including better job security after the financial crisis, ex-pats returning from overseas, and an increase in Aucklanders selling up and moving north.

"More people are spending more money. There's more confidence out there," Mr Dobbs said.

He said the increased work is a welcome change for the industry.

"Everyone has a good smile on their faces. It makes up for the five years of doom and gloom," he said.

Across the country 2420 new residential buildings valued at $727 million were issued in November, with Auckland and Canterbury contributing the most to this number.

"November is typically a strong month for new dwelling consents. The number this month was the highest since August 2007," Statistics New Zealand business indicators manager Clara Eatherley said.