Latest / Best of Business / Matt Duder: EBoss managing director on the new data showing significant percentage of builders have grim outlook for the year

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Matt Duder: EBoss managing director on the new data showing significant percentage of builders have grim outlook for the year · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks. There'd be
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• 0:17
  Speaker 1: Heather do for Sea Ellen.
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  Speaker 2: Now, almost three quarters of builders think that the industry
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  Speaker 2: isn't for another tough year. Unfortunately. This is according to
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  Speaker 2: a new survey of six hundred and fifty Kiwi builders.
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  Speaker 2: Seventy six percent or rather sixty seven percent of them
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  Speaker 2: don't think that they don't have as much work as
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  Speaker 2: they did last year. Seventy percent of them think industry
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  Speaker 2: conditions will decline over the next twelve months, which is
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  Speaker 2: the vast majority of them. So you've got to believe
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  Speaker 2: what you're hearing. Ebos died the survey and Matt Dooda
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  Speaker 2: is the managing director.
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  Speaker 3: Hey Matt, Heather good evening.
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  Speaker 2: How much longer do you think these guys can hang on?
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  Speaker 3: Well, let's provide some context here. I think the report
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  Speaker 3: confirms what we've been seeing and building consent numbers in
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  Speaker 3: anecdotal reports really just suggests that we've got significant capacity
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  Speaker 3: today and that capacity is going to remain for some time.
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  Speaker 3: I think the overall message for people here is, if
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  Speaker 3: you're actually been considering a project, whether it's a renovation
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  Speaker 3: or a new build. I think the window over the
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  Speaker 3: next twelve months is going to be the best time,
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  Speaker 3: probably in the next five years to get stuck into
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  Speaker 3: a project, because you're going to find you've got builders
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  Speaker 3: and architects available when you want them, and we've got
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  Speaker 3: married with building prices, building product prices at stabilized rates,
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  Speaker 3: and competitive labor rates as well.
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  Speaker 4: So I think we should.
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  Speaker 3: Try and encourage the demand for building in terms of
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  Speaker 3: you know, for those hanging on, we're builders to operate
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  Speaker 3: on tight margins, so having continuity of works really important
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  Speaker 3: to them. So there are some concerns here, particularly for
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  Speaker 3: smaller builders who told us that, hey, they're doing this
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  Speaker 3: toughest and have had the most significantly reduced workloads.
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  Speaker 2: So I would imagine that you guys would be particularly worried,
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  Speaker 2: or people who are worried about the stuff would be
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  Speaker 2: particularly worried about the twenty twenty one percent or thereabouts
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  Speaker 2: who are working at about at zero to forty nine
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  Speaker 2: percent capacity, Right, I mean, you're not doing half the
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  Speaker 2: work you could be doing. Who are these people? Are
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  Speaker 2: they the sole traders? Are they the small guys?
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  Speaker 3: Yeah, it's definitely skewed towards the smaller, smaller companies. I would, however,
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  Speaker 3: mention that you know, some of the larger companies have
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  Speaker 3: actually got significant pipelines that are more positive about the future,
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  Speaker 3: and it also urged people to think that are just
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  Speaker 3: remind them there's some regional differences here, so there's different
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  Speaker 3: levels of demand depending on where we are in the country.
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  Speaker 3: But you know, in terms of the actual financial stability,
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  Speaker 3: you know, we're actually seeing the report that you know,
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  Speaker 3: most builders they're responsible, and they are actually responding like
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  Speaker 3: anyone tightening their fiscal belt. They've mentioned multiple factors to
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  Speaker 3: looking to drive greater efficiency. They're open to utilizing new
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  Speaker 3: products and technology, and certainly thinking about widening their portfolio
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  Speaker 3: of services, particularly into the renovations market. So it's good
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  Speaker 3: to see.
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  Speaker 2: Hey, I was quite fascinated to hear that some builders
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  Speaker 2: are wary of the new law that's going to remove
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  Speaker 2: the requirement for the local certification of materials. I would
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  Speaker 2: have thought that they would want it to want it
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  Speaker 2: to be easy to get the stuff in.
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  Speaker 4: I hither, the way I read the report, I actually
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  Speaker 4: see that the majority of builders are actually supportive of
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  Speaker 4: loosening the rules to allow more important product.
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  Speaker 3: But I do think that a number of them just
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  Speaker 3: have a word of caution for the government to make
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  Speaker 3: sure that not all product is considered equal. So let's
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  Speaker 3: think about taps and toilets differently from windows and structural
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  Speaker 3: elements and roofing products.
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  Speaker 2: Yeah, that's actually a very good point, Matt. Thanks so much, mate, appreciated.
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  Speaker 2: Look after yourself. It's Matt, due to Eboss's managing director.
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