STATE OF THE INDUSTRY

Reports from Branch Presidents August 2022

AUCKLAND / NORTHLAND

Auckland /Northland region are currently reporting a good amount of work and forward work, however there are still concerns where 2022 may end up, with inflation, increasing interest rates. As a result of the current economic climate the Group home sector are reporting a slowing down of enquiries.

In May we were finally able to hold our first face to face meeting for 12 months, which the AGM was incorporated into. We had a good turnout with the attraction of our guest speaker Robert Campion from the Window & Glass association talking and educating us about the new H1 Thermal Regulations, and the impact to our industry. Robert illustrating how timber joinery thermally outperforms Aluminium Joinery, which will give timber joinery an opportunity to grow its market share.

The outbreak of Covid 19 and the Flu in the community is having huge impact on all our businesses, with high staff absentees due to catching the virus or having too self-isolate. Some companies are reporting 200 -300 production hours lost per month. This is only adding to staffing issues we are all facing, not been able to employ good trades people and general staff. There is a real need for more companies to take on apprentices to train.

Hardware suppliers are now seeing some of the effects of the supply chain issues from parts of China having been in lock down affecting production. Along with long transportation times causing delays in products getting to New Zealand.

We are not seeing any easing of the continuing price increases of materials, thus increasing the sales price of our products, putting the price outside the affordability of some customers.

For the Kitchen industry scheduling has become one of their major problems, as the homes haven’t been ready in time for the install of the kitchens. The problems are arising from the supply of Gib, to plastering and painting and a whole raft of other trades that builders are trying to co-ordinate in a time of high demand and short supply. -

Rob Pickup

Canterbury

Welcome to my first ‘State of the Industry’ report as the new president of the Canterbury Master Joiners. The region is extremely busy, both with workloads and everyone struggling with absent staff due to the flu and The South Island has been hit hard with COVID.

Supply issues seem to have crept up on us again, so forward planning is a must!

We are still managing to have our monthly meetings, with a good turn out of members and associates. One of the major discussion points has been about how to deal with quoting a job and dealing with constant price increases from suppliers. There has also been talk around how long this busy period will carry on for?

With Te Pae Christchurch Convention Centre having recently opened and Canterbury having finally got the ‘go ahead’ with the new Te Kaha Stadium, the local economy has a positive feel. Our social committee organised a quiz night in July and we had 55 people attend, which was a fabulous turn out. It was a great night for all who attended and I am sure the winning team loved their prize.

Looking ahead, in August Blum are kindly hosting the CMJA Joinery and Design awards at their new showroom and the national Master Joiner conference in September is hosted in Blenheim. Good numbers are going up to conference from Canterbury this year, with a few first timers which is awesome. The ‘break-out’ sessions were popular at the last conference in Hamilton and conference is always good time to catch up with others in the industry from around the country.

With the days getting longer and more staff having been employed at work, I am looking forward to getting my weekends back and I know my wife is hoping we can go on a horse trek or local pub ride together soon. Our bees have wintered well so far and we are looking forward to a sweet harvest when the flow starts. -

Central

Paul Baker

The Central Region held its yearly AGM on the 18th of May. We had a decent turn out with Members and also Associate Members attending. We celebrated the success of our Apprenticeship Initiative. In total over the past two years, we have seen 24 new apprentices join our industry across 13 of our members. Each of these apprentices was given a $500 Carters voucher to put towards a set of drills to start them on their path to success. I have been getting mixed information from builders. Some are still seeing a small decline in inquiries, while others are starting to see it pick up again. The common theme is that the first home buyer clients have gone quiet. The clients that are looking to build are cashed up and know what they want. The renovation market is a little bit slower than it has been with people watching what they are spending money on. The second wave of covid along with winter bugs, has been taking its toll on the region. Our company looked at the numbers this week and we have lost 59 days of production in July alone due to staff being away sick. I know this is tough on the business, however we also need to make sure that we are checking in with our staff and making sure that they are coping. If someone doesn’t seem themselves – then take the time to ask the simple question ‘Are you ok?’ I know I have some staff members really struggling to get over illness and it is taking a toll on them mentally. Supporting your team is crucial.

NELSON / MARLBOROUGH Summary

The industry is still very busy in the nelson Marlborough region. Workloads forward are in months, many of months. The problem is with materials supply, certainty of workflow readiness and staffing to achieve it. There is a real concern of a perfect storm late year in workloads, when materials supply may become easier and projects continue.

Workloads

Seems we have entered a new phase of confusion, there is buckets of work around but customers are unable to give accurate delivery times, we may as well guess on our own with many builders months out on planning times. We fear this December is going to be hell! Planning will be crucial. We notice some of the dates on the tenders date back to late 2021, so they have taken a while to get through the system to this stage which tells me there are delays throughout the pipeline. Materials supply

Hardware not too big a problem now with many alternatives on the market, if one suppler has run out its now easy to switch. Imported timbers are getting harder to get and have increased in price significantly, longer lengths are getting harder to get, one member said it might be easier to plant a tree …

With Gib all over the news it’s clear that’s not sorted but steel reinforcing, steel for the roof, h3 timbers are all in short supply but nowhere near as bad as GIB. Builders now ordering materials before the dirt is even turned. There is alot of distrust with the suppliers.

Any shifts in the market

There seems to be an increase in commercial work in the pipeline (next 2 years) at the moment however domestic is certainly still strong especially alterations and additions

Staffing and training ... covid

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Kristine Holmes

Seems the flu has well and truly overtaken covid as the reason staff are away, its ironic that many are sicker with the flu than covid. Staff movement seems to have settled down perhaps they feel a little less secure heading into what will be a changing market, possibly even a recession. To get it all done once the pipeline issues are sorted, we won’t have enough people to do it all.

Anything else in the headlights ... 25th December ...

We are just starting to see some delays in payment where banks had changed the rules after the build had started. All be very aware at his stage of the cycle where the deposit of cash for the next house was paying for the final payment of last house; and the next house is not there, a scenario we’ve all seen before. -

Phil Agnew

OTAGO / SOUTHLAND

The Otago Southland region has continued to perform well during 2022. Across the region strong workloads and a steady supply of incoming work tend to be the common themes.

There remains positive news on several fronts – apprentice numbers are strong, and the supply chain appears to be settling. Challenges remain with Gib affecting building progress and headwinds with Interest Rates and Inflation lay firmly on the horizon. Winter will soon be giving way to spring, and we will be looking forward to the run home to Christmas already! Wow.

Our AGM and mid-year dinner was a great success. Record numbers again and a wonderful night was had by all. Special mention to Christine Leith for organising. Following the AGM, we have a new VP in Kate Munro from B&M Joinery in Cromwell, and it is great to see so many new faces and younger members of staff come along and join in our MJ community. Long may that continue. I look forward to catching up with you all again soon. -

Reuben Bogue

months so far. Winter weather has set in, it seems to be more wet and windy days than sunny days, cooler temperatures.

Most Taranaki joinery factory are busy, with some reporting high level of work. While others report that inquiries have slowed up, but generally things a still trucking along. With more jib available now it seems people are starting to get their projects back on track. This means that there will be more press on jib fixers and plaster to get house ready to paint. Materials seems to more readily available, with most supply well stocked for the run into Christmas. General freight seems to better now and couriers seem to be getting back on track with their delivery.

Most us have been struggling with staff being sick or of with covid which has brought it’s own challenges with workflow and cashflow. Again the same old thing; staff still seem to be the issue, with people moving between joinery factories. TMJ has spent time canvassing the career advisers at the mouthly meeting where we present what opportunity where available in our industries; which went very well. I don’t think they knew how many opportunities were available in the industries and the pathway that student could take.

Let’s hope for more sunny days as we head to more warmer months and fine days. Be kind and stay safe.

- Bryan Frank

WAIKATO / BOP REGION

The fantastic summer weather mentioned in our last report has been followed by one of the wettest winters on record adding a further complexity to building project management in the Waikato/BOP Region. Members’ work schedules continue to be challenged with regular delays on building projects. On a positive note though, the gib ‘crisis’ appears to be easing.

workloads is a concern we must address to ensure we don’t lose more good people from our industry.

The Panel Discussion at our recent AGM was well received by the Members. Our thanks again to Master Builders, BCITO and MJ for providing panellists to speak to the current challenges facing the building industry and provide insight on how the wider industry can work together to provide support and thrive together.

Our Regional Committee is currently planning our Meeting/ Events schedule for the next 12 months, providing opportunities for our Members to unite again with ‘in-person’ events that will support our Member businesses in terms of sharing and learning. More details will be available at our next Member meeting and on the MJ website.

First off the rank will be the Ken Monk Memorial Fishing Trip which we hope to reschedule for later this year. A social day out of our busy work lives to connect with like-minded people, share a few laughs and hopefully catch a few fish! Could be just the re-set we need before the Christmas rush. Until then, take care. Nga Mihi. - Cherie van der Poel

Wellington

Finding the time to write these reports is more difficult than ever. The staffing issues and hold ups are taking their toll on many businesses with a lot needing to purchase extra storage. It seems companies are training low skilled people to fill the gap which is inundating the training providers. Sickness has also decimated timelines and increased waiting time on freight.

Waitaki

The Waitaki area has been busy over the last few months with most members dealing with 2nd round of Covid 19 and staff absenteeism at work, the Flu is also having a large negative impact on production, despite all having good forward work members are having to manage work loads very carefully. Despite supply chain issues that are being endured nationally it would appear that the construction industries need for joinery pricing is still growing both residentially and commercially in our region. There are many opportunities for pricing that with the back end of the year fast approaching will be a very busy time for many.

Finding good staff is proving to be an ongoing issue with many members working hard to source suitably motivated people to fill apprenticeship roles in their factories, however this will take some time to turn around.

Material supply seems to be freeing up a bit for those who are organized but the continued cost increases seem to be coming in with monotonous regularity and required a bit of management with clients and their expectations. Quote validity periods are constantly being reviewed as you would expect due to material increases, but most if not all the members indicate that clients are generally paying on time with few outstanding debts held.

Taranaki

Well, that time again to write another report, how the year flys past, it been a interesting eight

Absenteeism due to covid and flu and filling vacant positions seem to be the biggest challenges many of our Members are dealing with at the moment. Unsustainable

But it’s not all doom and gloom, Companies have succeeded in applying to become accredited with immigration and borders are finally opening. This could very soon sort some of the issues out. There is some light at the end of the tunnel. The workload seems strong; moving forward, We’ll just keep chugging along. - Grant Smith

In conclusion the members in the Waitaki area seem to be coping well leading up to this years Conference in Marlborough and all are planning in advance for the end of year rush which seems to appear earlier each year. We look forward to catching up with all those who are able to attend the Conference and plan to enjoy a couple of cold beers with you there. - Mark Albert