3 June 2011
Registered Master Builders says new building activity worst year ever
The Registered Master Builders Federation (RMBF) says the latest building consent figures released today indicate that
the number of new houses to be built in 2011 will most likely result in the lowest number ever recorded. Statistics New
Zealand figures show 893 new home consents were issued in April, down 14.7% from the previous month. New home building
consents issued so far this year are 777 in January, 973 in February, and 1047 in March.
RMBF CEO Warwick Quinn says that “when these figures are extrapolated for the remainder of the year we are looking at
barely over 11,000 new home consents for 2011 and with apartments included we might make 11,500. If these trends hold
true that translates to a 25% reduction on the 2010 year”. This means that builders will continue to release skilled
staff which will result in the continuing loss of capability at the very time they need to be retained given what New
Zealand is facing over the next few years.
Mr Quinn says that due to the current work shortage there is no immediate skill shortage however we have an imminent
medium - long term skills capability problem. He cites the Canterbury rebuilding work, the housing shortage in Auckland
and the leaky home repairs needed as known work streams and says the economy will also eventually recover to a point
where there is a general increase in construction activity.
“It is imperative the construction sector does not contract further as the industry will struggle to cope when the
market eventually responds. We can see this large amount of work in front of us but in the mean time we are continuing
to lose skills as the work disappears.”
Mr Quinn says that there is spare capacity in the system at present and liquidity pressure was building in the
Canterbury region as a result of September and February quakes.
The regions with the largest decreases were Canterbury, Waikato, Hawke’s Bay and Otago.
ENDS