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Speaker 1: Right now, call logics called our Construction Price Index has

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Speaker 1: recorded the first drop in construction costs in twelve years

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Speaker 1: since the index started looking at prices. This should mean

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Speaker 1: that we get cheaper houses when we're building right Joining

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Speaker 1: me now is the new Zealand Certified Builders Chief executive

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Speaker 1: Malcolm Fleming. Malcolm, what does it mean?

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Speaker 2: Look? The drop in building us means it's a great

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Speaker 2: time time for home book owners to consider a building project.

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Speaker 2: Global supply chains are no longer disrupted, so costs are

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Speaker 2: returning to where they were pre pandemic and falling demand

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Speaker 2: for building materials has led to manufacturers and distributives becoming

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Speaker 2: more competitive with they're product pricing. So home ruwners can

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Speaker 2: now be more discerning about the builder engage to set

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Speaker 2: their building project up for success. Home owners would be

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Speaker 2: insisting on a trade qualified builder is aligned to the

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Speaker 2: Trade association because they have a choice.

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Speaker 1: Now, what does it mean for trade's wages? Are they

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Speaker 1: going down or are they just not rising at the

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Speaker 1: same rate?

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Speaker 2: Wages generally have stabilized four point one percent was the

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Speaker 2: last on that in terms of statistics, there has been

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Speaker 2: a slow down and the wage rises generally a constant sector.

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Speaker 2: Material costs are coming down, as we've just been talking about,

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Speaker 2: and part of an example of that is manufacturers and

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Speaker 2: disputed distributors of building products are becoming more competitive. So

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Speaker 2: in action, what we're seeing is merchants approaching our members

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Speaker 2: about opening your accounts with them at attractive pricing, and

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Speaker 2: that's something we never saw costs twenty and twenty twenty two.

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Speaker 1: This is all good news. Does this mean that we're

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Speaker 1: going to see cheaper that you first into the first

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Speaker 1: homes or new homes cheaper?

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Speaker 2: I think we're going to see some of those costs

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Speaker 2: coming through. Another driver behind this as well as subcontractor

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Speaker 2: margins are under pressure as demand is for so subcontractor

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Speaker 2: margins are a lot higher and more elastic than a

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Speaker 2: builder's margin, and downward movement in that space has an impact,

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Speaker 2: and that's what we're starting to see now. So again,

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Speaker 2: a really good time for the homeland and consider a

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Speaker 2: building project.

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Speaker 1: Malcolm, Thanks for your time. Malcolm Fleming with us this morning,

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Speaker 1: the New Zealand Certified Builders Chief Executive.

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Speaker 2: For more from.

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