Building industry buoyant

By TOM CLARKE

The Registered Master Builders' Federation is not expecting the recent increase in interest rates to have a dramatic impact on the construction industry.

The federation's new president, Hank Lieshout, of Pukekohe, says factors such as higher interest rates and slowing population growth, reflect mainly at the lower end of the market.

Higher interest rates generally impact on first-home buyers who rely on "reasonable rates so they can afford the down payment and the cost of the mortgage," he says.

"When you get out of that bracket, you're dealing with a second-tier market where people are upgrading their homes. Fortunately New Zealand still has a good second-tier market."

Mr Lieshout says the economy does impact on the building industry, however.

"Just put up interests rates and people don't build to the same extent," he says. "It's an ideal tool for the politicians to regulate the economy and it always will be."

He is not anticipating any major fallout from the latest round of interest rate increases, however. The industry will adjust, as it always has, through the peaks and troughs, he says.

He does not believe there will be any reaction from the commercial sector where, he says, there is a very buoyant feeling.

"Things are happening in New Zealand," he says, and - with economic growth - the future looks quite bright. "I think this is just a little bit of a leveller and things won't stand still - they'll go on as usual."

The construction industry is positive and in a growing and developing nation like New Zealand, "it's a great industry to be in."

But, he says, the industry is in need of more skilled tradespeople. There are 2400 people in apprenticeships, compared with only 900 eight years ago, but more are needed.

"We need more skilled, experienced tradesmen now, and we need more apprentices coming into the industry," he says.

"There are shortages in Auckland, Whangarei, Gisborne, Taranaki and Manawatu, and there are plenty of warning signs that we haven't quite got enough apprentices in the system."

The traditional industry peaks and troughs present difficulties in matching supply and demand, but the federation is working to try and ease that. Mr Lieshout says off-site training providers and pre-employment courses will enable new entrants to "come on tap" more quickly when the industry needs them.

Mr Lieshout has had 45 years in the industry in his own business, Pukekohe Builders Ltd (now Pukekohe Developments Ltd), which he established in the 60s after arriving in New Zealand from Holland.

He has a long background with the Auckland and national Master Builders Federation, and has a particular interest in training. He is chairman of the Building and Construction Industry Training Organisation and its national carpentry committee, and served for 12 years on the former government training group, the National Apprenticeship Committee.