KEY POINTS:
The $12 billion-a-year building industry is experiencing a work downturn, open order books and the potential for job layoffs.
Builders, electricians, plumbers and other tradespeople in Auckland are reporting a drop in workload as the economy slows and people become more cautious, deferring new house starts
and renovations.
But there's a bright side for home-owners - the waiting time for a tradesman seems to have got shorter.
At stake are the jobs of more than 100,000 people, including 45,000 to 55,000 builders who have been putting up around 25,000 new houses annually throughout the decade.
Trade chiefs are blaming the string of finance company collapses and Blue Chip's demise for the unexpected drop in demand, saying thousands of people had lost millions of dollars which they might have spent on their houses.
The president of Master Plumbers, Gasfitters and Drainlayers NZ, Ian McDermond, noticed the change four months ago and said the usual pre-Christmas rush didn't eventuate.
"We might have to lay people off because at the end of the day, we have to make a buck," he said of his firm, McDermond Plumbing and Gasfitting, which employs 17 plumbers in Auckland and has a staff of 20.
"So many people have lost their life savings that it's taken millions of dollars out of the system. The new housing market has gone, and people aren't renovating because they don't have the money."
Despite having less work, he plans to increase his rates from $80 an hour to $82.50, citing the need to cover rising petrol and insurance costs.
The Weekend Herald has learned of one house-building business which will run out of work after June and a large plumbing business which has suddenly found itself with a bare order book after June.
Throughout this decade, tradespeople have been so scarce that consumers faced long waits and the industry had favoured immigration status in an attempt to increase the pool of skilled labour.
Auckland Registered Master Builders Association president Steve Brackenridge has noticed house-building projects going on hold.
"It's less busy than last year. It was frantic before but it's more manageable now," said the Warkworth builder, who charges $30 to $50 an hour plus GST.
As the residential market slowdown begins to bite, tradespeople have become more plentiful.
The country's 1800 registered master builders, who employ more than 15,000 chippies, is feeling the pinch.
Their association's chief executive, Pieter Burghout, said the housing sector was softening.
Registered Master Builders' Auckland manager Sally Mehrtens posted a notice calling for builders in February and got nine who could start work immediately.
At the height of the property boom, in 2006, Mr Burghout said, the average wait for a builder was a year and apprentices could command annual wages of up to $100,000.
Neville Simpson, chief executive of the Electrical Contractors Association, which has 1600 members employing 8000 sparkies, said new residential work had become more scarce but electricians remained relatively rare.
Tradespeople feature prominently on the Department of Labour's long-term skills shortage list.
Plumbers, fitters, turners, welders, electricians, cabinet makers, boat builders, carpenters and joiners are in short supply, and the unemployment rate is at a record low of 3.4 per cent.
WHAT THE WORKERS HAVE TO SAY
THE SPARKY
Kirk Anderson, an electrician, was planning to increase his $55-an-hour (plus GST and travel time) rate. But the slowdown has made him change his mind.
"Work is not as chaotic as last year. The phones are quieter," said the Mt Albert tradesman. "People are scared. Everyone has huge loans," he said. People were afraid of spending too much and putting their houses at risk.
THE PLUMBER
Steve Frogley of PlumbQuick, with 11 tradespeople in Auckland and Wellington, says his firm hasn't noticed much change because it specialises in emergency work. "But when the construction side of the industry drops away, plumbers fall back on maintenance, and that creates more competition for us." PlumbQuick charges $69 an hour plus GST and travel time. Mr Frogley says house-building has been hit by high interest rates and finance industry collapses.
THE CHIPPIE
Warkworth builder Steve Brackenridge has noticed a big change in workloads, and say starts on new housing are being delayed. He partly blames the consent process but is sure the general economic downturn isn't helping. Expect to pay $30 to $50 an hour, plus GST, for a builder, he advises. "It's less busy than last year. We might have five sites running at any one stage. It hasn't got to the stage yet where we're wondering when the phone's going to start ringing."
