Builders returning to work face prospect of not being able to get materials

Wednesday, 1 September 2021

Construction sites outside Auckland and Northland, construction work can resume work today but now they face another potential hurdle: sourcing building supplies.

The building industry is struggling to get supplies out of Auckland and could be in pain if Auckland remains in lockdown for more than another two weeks, a construction industry leader says.

The Building Industry Federation, which represents building material suppliers, says the Government has decided not to issues exemptions to allow most building materials past Auckland’s border.

This has raised fears that construction sites coming out of Level 4 lockdown in the rest of the country might grind to a halt if they can’t get necessary materials like steel mesh or gib board.

Dean Kimpton, chairman of the Construction Sector Accord, confirmed the industry had raised the issue, but the Government had decided to put public health first.

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Exemptions were being made for materials for projects that were of national significance.

“Yes there is concern. The issue is that Auckland is a point of entry for imports and it’s a manufacturing centre for a number of construction materials, particularly the residential sector.”

“If Auckland remains at Alert Level 4 for longer than another two weeks, than yes, I think it will become increasingly critical.”

Building materials are already in short supply due to post-pandemic shipping disruptions, and lockdown delays have left many firms under time pressure.

The building supply industry is worried work will grind to a halt if materials can’t be transported out of Auckland.

The Master Plumbers Association was also concerned, saying there was little point letting the construction sector return to work if the Government failed to open key supply chains.

“We’ve got 21 pages of protocols outlining how businesses can operate under level 3, but it’s all a complete waste of time if you aren’t giving these businesses access to supplies so they can do their job. It really is a Clayton’s opening of business,” chief executive Greg Wallace said.

Auckland warehouses stored almost all New Zealand’s construction supplies, he said.

“Economic recovery is going to be majorly stifled if businesses don’t have the supplies they need to operate.”

In the meantime, work was being done to see where materials stockpiled around the country lay, Dean Kimpton said.

Previously some information was commercially sensitive, so the overarching picture had not been clear but given the circumstances, the accord expected its members to collaborate.

Julien Leys, chief executive of the Building Industry Federation, said the Government had made assurances that it was working with the accord and would release products if necessary.

But he was worried the issue was far more serious than was being portrayed. Many of New Zealand’s manufacturers of steel mesh and other key building products were based in Auckland.

“The direct consequence is that a lot of construction work that is allowed under Alert Level 3 may not proceed,” he said.

“Some building materials like wall boards, plaster systems, gutters and down pipes, construction glues, and additives for structural concrete will run out within three days.”

Leys called on the Government to allow materials to flow across the Auckland borders in the same way it allowed other essential products.

“We know that freight providers are ready and able to comply with a strict non-contact process and move essential building products in the same way that New Zealand’s bulk food products are distributed from warehouses in south Auckland to the rest of the country.”

Fletcher Building, which owns Placemakers, said work had stopped at its manufacturing and distribution sites in Auckland to observe the rules around Level 4.

The only exception was its Golden Bay cement facility in Whangarei which continued to operate.

The company was in talks with government departments about the impact, “especially with parts of the country beginning to ramp up building again”.

“We are awaiting direction from them once they have digested the information we have provided.“

Carter Holt Harvey have been approached for comment.