1
00:00:00,080 --> 00:00:02,880
Speaker 1: What does the Fletcher sale mean for construction and are

2
00:00:02,920 --> 00:00:04,840
Speaker 1: there morbids of Fletcher yet to be sold? The construction

3
00:00:04,920 --> 00:00:07,080
Speaker 1: arm of course, is going to see construction for a

4
00:00:07,120 --> 00:00:09,040
Speaker 1: bit over three hundred million. Fletchers want a future in

5
00:00:09,160 --> 00:00:12,039
Speaker 1: building products. Karl Taylor is the CEO of the Combined

6
00:00:12,080 --> 00:00:15,000
Speaker 1: Building Supplies co Op and is with us Calen morning.

7
00:00:15,560 --> 00:00:17,040
Speaker 2: Happiness here, Mike and you too.

8
00:00:17,160 --> 00:00:17,880
Speaker 1: Is this good news?

9
00:00:19,320 --> 00:00:22,680
Speaker 2: It's certainly not, certainly not bad news. I think it's

10
00:00:22,680 --> 00:00:25,799
Speaker 2: pretty good. I mean, it's certainly a signal that delivering

11
00:00:25,920 --> 00:00:29,640
Speaker 2: large scale infrastructure in New Zealand now requires offshore capital.

12
00:00:29,800 --> 00:00:33,320
Speaker 2: And you know, it's certainly been very, very tough over

13
00:00:33,320 --> 00:00:35,519
Speaker 2: the last few years, and I think simply these guys

14
00:00:35,960 --> 00:00:38,920
Speaker 2: are just looking to move on their risks. So I

15
00:00:38,960 --> 00:00:41,000
Speaker 2: think it's not a bad thing for the industry, that's

16
00:00:41,000 --> 00:00:41,360
Speaker 2: for sure.

17
00:00:41,400 --> 00:00:43,839
Speaker 1: Are you confident that I'm trying to work out what

18
00:00:43,840 --> 00:00:45,840
Speaker 1: the message is, is the message that you can't build

19
00:00:45,880 --> 00:00:48,280
Speaker 1: anything of substance in this country? Or if Fletcher is

20
00:00:48,320 --> 00:00:49,839
Speaker 1: just a bit useless and they had to get out

21
00:00:49,840 --> 00:00:51,360
Speaker 1: of it and someone else will do a better job.

22
00:00:53,320 --> 00:00:56,400
Speaker 2: It just means now, Mike, that you know, modern construction

23
00:00:56,520 --> 00:00:59,720
Speaker 2: in New Zealand's just a global capital gain. The locals

24
00:00:59,760 --> 00:01:02,480
Speaker 2: just want to take that risk and it just moves

25
00:01:02,520 --> 00:01:06,520
Speaker 2: that risk over to a global the global company. And

26
00:01:06,720 --> 00:01:09,520
Speaker 2: this isn't new. We've had these global companies here before.

27
00:01:09,560 --> 00:01:12,640
Speaker 2: You've only got a look to Kaha Stadium in christ Church,

28
00:01:12,760 --> 00:01:17,080
Speaker 2: the Metropols and christ which all completed by global construction companies.

29
00:01:17,480 --> 00:01:20,520
Speaker 2: And you've got to also remember that these guys also

30
00:01:20,640 --> 00:01:23,640
Speaker 2: employ a lot of locals, a huge amount of locals.

31
00:01:23,640 --> 00:01:27,279
Speaker 2: So I don't see this as bad news as good news.

32
00:01:27,280 --> 00:01:30,920
Speaker 2: It might be some better flow through with these projects.

33
00:01:31,080 --> 00:01:33,240
Speaker 1: Yeah, I got a bit of text action on HGB

34
00:01:33,400 --> 00:01:35,600
Speaker 1: which they already are in to Vanci already in the country.

35
00:01:36,080 --> 00:01:38,000
Speaker 1: Are they too big? Is there is still some good

36
00:01:38,080 --> 00:01:39,640
Speaker 1: competition in the marketplace or not?

37
00:01:41,120 --> 00:01:43,560
Speaker 2: It should open up some more competition. It might put

38
00:01:43,600 --> 00:01:48,720
Speaker 2: a little squeeze on those tier two type companies and

39
00:01:48,760 --> 00:01:50,680
Speaker 2: that just means that they might have to be a

40
00:01:50,720 --> 00:01:53,080
Speaker 2: little bit more competitive. And that's only because they might

41
00:01:53,120 --> 00:01:54,440
Speaker 2: be a little bit more need to be a bit

42
00:01:54,440 --> 00:01:56,800
Speaker 2: more organized. But again, like I think it's a great

43
00:01:56,800 --> 00:01:59,480
Speaker 2: thing for the sector. Anything that creates a bit more

44
00:01:59,480 --> 00:02:02,000
Speaker 2: competition helps the end users go to be a great.

45
00:02:02,000 --> 00:02:02,560
Speaker 2: Thanks for right.

46
00:02:03,120 --> 00:02:04,800
Speaker 1: Fletcher's finished selling stuff.

47
00:02:04,800 --> 00:02:08,720
Speaker 2: Do you know, I think all Fletchers have decided to

48
00:02:08,760 --> 00:02:11,600
Speaker 2: do is but they're really great at their distribution, right,

49
00:02:11,600 --> 00:02:13,799
Speaker 2: you know, They've got Wednesday and will Boards, They've got placemakers,

50
00:02:13,800 --> 00:02:16,120
Speaker 2: a great companies to deal with. I think what they're

51
00:02:16,120 --> 00:02:17,480
Speaker 2: just trying to do a stick to their nearing and

52
00:02:17,520 --> 00:02:21,120
Speaker 2: they know these companies are far more profitable than the

53
00:02:21,280 --> 00:02:23,880
Speaker 2: end ground companies. So I think they're just making a

54
00:02:23,919 --> 00:02:25,160
Speaker 2: great business decision, to be honest.

55
00:02:25,240 --> 00:02:27,200
Speaker 1: Good stuff, Col, nice to catch up. Go well, we'll

56
00:02:27,240 --> 00:02:29,079
Speaker 1: catch up during the year, I'm sure, Carl Taylor, who's

57
00:02:29,120 --> 00:02:31,359
Speaker 1: the CEO of the Combined Building Supplies co op.

58
00:02:31,840 --> 00:02:34,679
Speaker 2: For more from the Mic Asking Breakfast, listen live to

59
00:02:34,840 --> 00:02:37,919
Speaker 2: news talks. It'd be from six am weekdays, or follow

60
00:02:37,960 --> 00:02:39,519
Speaker 2: the podcast on iHeartRadio