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Home / New Zealand

Unsure future worries builders

Wairarapa Times-Age
3 Feb, 2011 03:00 AM3 mins to read

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Building consents may be up but the Wairarapa building industry is struggling to stay afloat.
New homes have been thin on the ground, say Wairarapa firms, with the majority of work being renovations, and tenders for commercial work being more competitive than ever.
Holmes Construction, one of the biggest contractors in Wairarapa
with 30 carpenters, said while it had a strong four months in the lead-up to Christmas, the future was uncertain.
Managing director Andy Holmes said the firm had let three builders go in the past year and was cautious about taking on apprentices.
It now had about two to three apprentices and several had left the company without being replaced.
Mr Holmes said he saw light at the end of the tunnel but it was the Government that was holding the torch at the moment.
"The Government has continued to spend, which has kept the industry afloat. If that hadn't happened, we would really be suffering, I can assure you, because the private sector has not spent and what we need is the private sector to start spending again."
Chris Hurrell, managing director of Rigg-Zschokke, which focuses on commercial building, said a lack of capital meant big projects were being deferred.
"They say something is starting at the end of January and you will find there's delays and it might start two months later."
The company of 25 builders laid off two people and two or three of their younger workers left for their OE without being replaced.
However, Mr Hurrell said training the next generation of builders was a priority and the firm was taking on two more to bring its total to 10.
He said the greatest risk for the building industry would be if experienced builders fell away to a point where builders aged only 25 to 30 were teaching the 20-year-olds.
Wayne Johnson, managing director of Johnson Bros, a Featherston-based firm that focuses on renovations and rural construction, said it was surviving through strong relationships with existing clients. The firm of 10 builders, six carpenters and four apprentices, hadn't laid off anyone but couldn't afford to be picky about the jobs on offer.
Gareth Norris, managing director for Jennian Homes Wairarapa, which focuses on residential homes, said it built half as many houses last year as it had in the boom period. The market was tight and over the past three years, the firm had cut back four or five builders.
It was taking on an apprentice this month but was reluctant to add more.
However, he said the down period had let the firm reassess its long-term business plan and it was was focusing on two new show homes and a 200sqm selection centre that combined three show homes into one building.
Nationwide, 14,663 homes were built last year but the Registered Master Builders Federation said more than 20,000 needed to be built to maintain the country's level of skilled builders.

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