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Carl Taylor: Combined Building Supplied Co-op Chair on the increase in building costs · The SME Stream

• 0:00
  Speaker 1: New insight though. Meantime into where our construction sector is.
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  Speaker 1: We've got the Core Lodge of Construction Costs index, so
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  Speaker 1: we've gotten uptick for the quarter of the chairperson that
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  Speaker 1: Combined Building Supplies co Op. Carl Taylor's with us on
• 0:11
  Speaker 1: this Carl.
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  Speaker 2: Morning, Good morning, Mike. How are you well?
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  Speaker 1: Thank you mate, one point one percent rise for the quarter.
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  Speaker 1: So what is the small seeds like at the end
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  Speaker 1: of the tunnel green shoots, singing hammers.
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  Speaker 2: Yeah, we're just starting to see a bit of an
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  Speaker 2: uptake and work. I mean, obviously we're seeing that building
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  Speaker 2: consensus they're slowly coming up, but that only counts for
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  Speaker 2: a small portion of the actual work out there a
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  Speaker 2: lot of guys that have the indecks and fences and
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  Speaker 2: the small stuff that they cry and they're really hurting.
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  Speaker 2: I'm still hoping the phones are ringing more, but that's
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  Speaker 2: going to take a fair bit of time.
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  Speaker 1: I think how much of it's about money, access to money,
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  Speaker 1: and my desire to borrow some to build something bigger.
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  Speaker 2: Yeah. Well, I saw going to a shareholder yesterday and
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  Speaker 2: he said generally he would normally go to a thirtier
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  Speaker 2: lender lending for his speck builds any just starting to
• 1:01
  Speaker 2: see the doors of the banks open a little more.
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  Speaker 2: So I guess what he's saying is that the banks
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  Speaker 2: are come in a bit easier to lend money to spex.
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  Speaker 2: But again, that's going to take twelve ony months to
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  Speaker 2: see come back to the market by the time those
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  Speaker 2: speck builds come back on track.
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  Speaker 1: So does today, for example, in the inflation rate in
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  Speaker 1: another cut before Christmas from the Reserve Bank. Does all
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  Speaker 1: of that materially help or is it still a bit early?
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  Speaker 2: Still early? But it obviously brings confidence back in the market.
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  Speaker 2: We certainly want to see the phones ring again. There's
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  Speaker 2: liquidations that happen a lot, so anything that helps the
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  Speaker 2: construction economy is certainly going to help the market.
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  Speaker 1: Yeah, okay, So costs are they down or have they
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  Speaker 1: just stopped rising?
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  Speaker 2: We've got one price increase this week five percent over
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  Speaker 2: a product that that's the first one I've seen in
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  Speaker 2: a long time. I know, steel prices come down a
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  Speaker 2: fair bit. Jim plateau. I think the key thing here
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  Speaker 2: is hasn't gone up. It just seems to plateaued right
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  Speaker 2: off now. Labor price like guys could certainly play with
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  Speaker 2: that that's gone up in the last two years. But
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  Speaker 2: if they played with that, they might get some work.
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  Speaker 2: But again, it's bloody tough out there at.
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  Speaker 1: The moment exactly. And here's my problem, because I followed
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  Speaker 1: this really closely because I'm fascinating with housing. The problem
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  Speaker 1: you've had is the cost has gone through the roof
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  Speaker 1: and so even if things have settled now, which they
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  Speaker 1: appear to be, you're still at a cost per square
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  Speaker 1: meter at a ridiculous rate, aren't you. Yeah, I mean,
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  Speaker 1: why would I build? What's the point I'll buy something
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  Speaker 1: that's already there.
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  Speaker 2: Well, the big thing that's gone up as the land
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  Speaker 2: as we know. If I use one example here in
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  Speaker 2: christ which Preston Subdivision two years ago, you get a
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  Speaker 2: section of two fifty for four hundred square meters. You're
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  Speaker 2: now paying close to half a million. So what we
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  Speaker 2: were selling for nine hundred, we're now trying to sell
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  Speaker 2: for one three, one four, one five. So people just
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  Speaker 2: don't have that tin to be able to buy them.
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  Speaker 2: So yeah, it a bit of a mongol, this for sure, all.
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  Speaker 1: Right, a bit of a mongrel.
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  Speaker 2: I like it.
• 2:56
  Speaker 1: Carl, well done, appreciate you time very much. Cal Taylor,
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  Speaker 1: who is the chairperson for the Buy and Building Supplies
• 3:01
  Speaker 1: coor