Skilled tradies in short supply as rise in building consents pushes construction boom along

A large sign at NPM Construction's site on Reyburn St is helping the company keep ahead of the skills shortage in Whangarei. PHOTO/MICHAEL CUNNINGHAM

A drop off in tradies and skilled construction workers during the recession has left the district's construction boom builders with a skills shortage headache.

Northland had experienced a lift in building consents in the year from November 2015 to November 2016, with the majority of those based in Whangarei. The 133 building consents issued in Northland in November were worth a record $45 million.

However, the demand for new builds had driven up construction costs, with the skills shortage resulting in companies lifting wages to retain staff and attract new people.

Companies such as Bowling Infrastructure Group has been innovative in its recruitment drive, erecting a huge roadside sign at its NPM Construction site on Reyburn St to attract workers.

The site will house a $5.6 million medical facility, being built on the 4350sq m former Mitsubishi Motors in Reyburn St and owned by Auckland-based Johnstone Group.

The new building will feature a pharmacy, new urgent care White Cross facility, with dental, X-ray and ultrasound, lab tests and physio. A cafe was also planned.

Bowling Infrastructure Group manager Steve Bowling said there was a shortage of skilled and experienced workers across the district. The company erected the sign to ensure a steady flow of workers.

"From carpenters, concrete workers, skilled labourers, machine operators, concrete layers, truck drivers ... there are plenty of people willing to come and give it a go, but not many with proper skills."

He said industry compliance was vital and the standard of work had to be high for clients, which left companies facing a challenge.

"During the recession, lots of guys dropped out of the industry and now we're in a boom and need them again."

Some workers had come from Auckland and the company now employed about 110 people throughout Northland, with some working in Auckland.

Mr Bowling said that construction workers' pay had increased between 5 and 7 per cent in the past year.

"Pay rates are sneaking up to hold staff."

Simon Crawford, Northland chairman for the Registered Master Builders, said the region's huge build demand was coming from Auckland buyers.

He agreed that construction workers were dictating labour costs and terms, but that at least the money was filtering down into the local economy.