Latest / Early Edition with Ryan Bridge / Tommy Honey: Construction Industry Council Executive Director on the survey showing builders believe the slowdown will continue another year

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Tommy Honey: Construction Industry Council Executive Director on the survey showing builders believe the slowdown will continue another year · Early Edition with Ryan Bridge

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  Speaker 1: Almost three quarters of builders believe the construction slowdown will
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  Speaker 1: carry on for at least another year. According to a
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  Speaker 1: new EBOSS survey of six hundred and fifty Kiwi builders,
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  Speaker 1: sixty seven percent don't have as much work as they
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  Speaker 1: did last year, No surprises there, while seventy percent think
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  Speaker 1: that industry conditions will decline over the next twelve months.
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  Speaker 1: Executive director of their Construction Industry Council is Tommy Honey.
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  Speaker 1: He saw with me this morning.
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  Speaker 2: Hey Tommy, thank sure, and Ryan, how are you doing?
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  Speaker 1: Yeah? Good, thanks mate. I've been looking at a couple
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  Speaker 1: of things. Housing can censor down. You've seen those stories
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  Speaker 1: about developers going tits up as well. Who's this hitting hardest.
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  Speaker 2: It's heading hardest of smaller builders. So those about half
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  Speaker 2: of the builders in the survey generally in the country
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  Speaker 2: have zero to five employees. So there are some big
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  Speaker 2: companies around that employ a lot of people and do
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  Speaker 2: very well, and they're probably riding through this crisis, you
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  Speaker 2: want to call it that better than most. So if
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  Speaker 2: you look at the smaller builders, there the ones that
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  Speaker 2: are being hit hardest. And this is survey's extraordinary that
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  Speaker 2: EBOSS surveys. There's a summary out, but if you're actually
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  Speaker 2: look into the detail, there things that make a real
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  Speaker 2: difference of what they call the forward workload or the
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  Speaker 2: short shorthand that's pipeline how much work you've got coming
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  Speaker 2: towards you. And for what is it thirty percent of
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  Speaker 2: builders it's now down to zero to three months, and
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  Speaker 2: some of that will be at zero. So people have
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  Speaker 2: no work. There's no work out there at the moment,
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  Speaker 2: and I'd say there's a sort of a perfect storm
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  Speaker 2: with them. And once the economics slow down, which is
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  Speaker 2: hitting us all. You know, the interest rates aren't moving,
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  Speaker 2: but also in building, the material costs are going up,
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  Speaker 2: so it's things have costing more. The second is the
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  Speaker 2: kind of flat real estate market, and so people because
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  Speaker 2: they can't get to sell their house for what they want,
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  Speaker 2: they're just sitting and waiting. And it's the same is
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  Speaker 2: true for building. So they might want to build house,
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  Speaker 2: but they've got to sell their old one, so they're
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  Speaker 2: not doing anything. So that kills that no one's renovating
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  Speaker 2: their houses to put them on the market because they're
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  Speaker 2: waiting for the market to change, So that kills that
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  Speaker 2: part of the sector. And the third thing is the
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  Speaker 2: change of government, which in itself isn't necessarily a cause
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  Speaker 2: of this, but there's a bit of well I call
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  Speaker 2: it wait and see on their part, the government's part,
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  Speaker 2: and therefore on the whole market, everyone's just waiting and
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  Speaker 2: the impact of sitting builders.
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  Speaker 1: Tommy, thanks for that update, Tommy Honey with us. He
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  Speaker 1: is from his executive director at the Construction Industry Council,
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  Speaker 1: responding there to a new Eboss survey six hundred and
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  Speaker 1: fifty KI builders basically saying, and most importantly, as Tommy
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  Speaker 1: pointed out, the pipeline of work isn't there. So if
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  Speaker 1: you're a builder, or if you're a trading even and
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  Speaker 1: you're looking at these construction as sorry, developers going under,
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  Speaker 1: and your pipeline of work isn't there, what do you do?
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  Speaker 1: Do you bugger off overse? I mean if you can,
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  Speaker 1: if you're mobile, you don't have kids, that sort of thing.
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  Speaker 1: How do you weather the storm when your you know
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  Speaker 1: your runway is looking so short in front of you?
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