This shortage was not helped when the Government closed down manufacturing, partially in Auckland, during the lockdowns. Now we are playing catch up plus labour shortages.
- Neil L
In reply to Neil L
Even importing products is hard our lead times have gone from 6-12 weeks to 12-26 weeks . It is a worldwide issue. Steel products have had 48% increase and that without exchange rate or freight cost. It started with freight issues first which wasn't passed on initially until it started coming more of long term issue.
- Carolyn G
If the MBA is correct that building costs have increased 34% over the last year & another 20% is likely in the next, I'd guess this is mostly a result of global supply-chain & shipping issues. Not to mention increases to fuel & interest rates across the world. I've been based in China for 20 years and in a different industry, but we're experiencing all of that. I suspect most of the stuff made for the construction industry worldwide comes from here too, & with the difficulties faced with the ongoing zero-Covid policy, the hit in NZ likely won't improve.The expected annual GDP target here has recently been reset to 5.5%, down from 8%, but might settle at 3-4% at year-end. That a gigantic hit for an economy this size. You should see what the real estate market looks like here for developers for example. It's currently pretty ugly! It reminds me of the old saying about Wall Street. When someone sneezes, the whole world gets a cold. Well manufacturing in China is sneezing!
- Marcus H
This price increase will underpin the housing market yet again. The replacement cost of houses far exceeds their market values hence the dreaded forecast of house price drops is well overstated.
- Geoff W
I have noticed there is a glut of sections for sale and are all sitting empty of construction and buyers. Yet at the same time there are virtually no new listings of houses for sale. As I see it, people are hunkering down for the mother of all storms to hit the economy.
- Gwill P
By the time the investigations are done and the reports written it will be "far too late" for most. Where is the proactive Government, not the reactive we currently have?
- Colin B
- Republished comments may be edited at the editor's discretion.
The Rotorua Daily Post and the Bay of Plenty Times welcome letters from readers. Please note the following:
• Letters should not exceed 200 words.
• They should be opinion based on facts or current events.
• If possible, please email.
• No noms-de-plume.
• Letters will be published with names and suburb/city.
• Please include full name, address and contact details for our records only.
• Local letter writers given preference.
• Rejected letters are not normally acknowledged.
• Letters may be edited, abridged, or rejected at the Editor's discretion.
• The Editor's decision on publication is final. No correspondence will be entered into.
Email editor@dailypost.co.nz or editor@bayofplentytimes.co.nz
