CATHERINE HARRIS
Optimism in the construction industry about the future has jumped significantly, but a new survey suggests the present reality is hurting badly.
Eighty per cent of respondents to a construction sentiment survey by consultants David Langdon expect their workloads to be stable or increase this year, up from 74 per cent in the September quarter.
Wellingtonians are even more optimistic, rising from 50 per cent to 82 per cent.
The Christchurch rebuild, funding to repair leaky homes and a housing shortage in Auckland are all expected to give the sector a major boost.
But subdued commercial investment, shrinking margins and the time it was taking for Christchurch's recovery to start are still major concerns.
Registered Master Builders Federation chief executive Warwick Quinn said there was a disconnect between what builders were hoping for and what they were experiencing.
"We've had very low levels of building for four years, and last year was the worst since records began when it comes to the residential sector, so it really can't get much worse."
Work was still patchy regionally, with more activity in Auckland and Christchurch.
Falling margins were also a worry. One observer said everyone was "fighting for every dollar", and the resulting "cut-throat pricing" was putting huge pressure on sub-contractors.
This could "exacerbate the industry's shortage of expertise by driving some out of business ... meaning the industry may lose much-needed talent".Quinn said the skills shortage was a major challenge, with apprenticeship numbers down by half.
"There's this real disconnect between how we can respond and encourage builders and tradespeople to take on apprentices, when there's no work for them, in readiness for the bounce when and if it comes."
Quinn said imported workers would be crucial to plug the gap, because when the work arrived, "we're going to need people almost overnight".
- ? Fairfax NZ News
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