NZ Manufacturer August 2020

Page 1

August 2020

BUY NZ MADE

www.nzmanufacturer.co.nz BUSINESS 6 COVID-19 Investment in our

11 THE INTERVIEW

manufacturing industry a win-win for all.

12 COMMENT The hidden benefits of local supply chains: A steel case study.

Greg Kushnir, Founder, Emrod.

Post-Covid-19 construction crunch - From survive to thrive -Stephanie Pretorius, Intent Group

New Zealand’s construction industry has been heavily disrupted since the arrival of Covid-19 to our shores. A relief package is now available, with the New Zealand Government investing heavily in the industry to the tune of $3B. Funded infrastructure projects include a significant amount of ‘shovel ready’ projects identified to support the short-term pipeline over the next 12 months. Despite extra funding, certain segments of construction are likely to still be negatively impacted. As an example, Auckland alone recently lost $500 from Council revenue budgets; the flow on effects are still to be determined. The funding pipeline may be affected for multiple years and there is risk of misalignment of capacity as funding may swing between years. The intent of the fast tracked ‘shovel ready’ projects is to quickly stabilise cashflow, as well as the pipeline for the industry, and to help construction thrive in the short term. But how can we take this further and help construction to thrive in the long term? As a sector, construction has been ‘sailing close to the wind’ for a long time with tight margins and low productivity. The Construction Accord (Accord) has set

the tone for the future, outlining goals for improved productivity, capability and resilience.

Many construction businesses took away lessons learnt from their Covid-19 experience as the ability to respond and adapt to trying conditions was tested. A sense of urgency for being in a stronger position for basic survival is one of these lessons. Positive lessons to come from Covid-19 might include how the experience built stronger leadership foundations,

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