1 00:00:00,040 --> 00:00:03,440 Speaker 1: Almost three quarters of builders believe the construction slowdown will 2 00:00:03,440 --> 00:00:06,760 Speaker 1: carry on for at least another year. According to a 3 00:00:06,800 --> 00:00:09,760 Speaker 1: new EBOSS survey of six hundred and fifty Kiwi builders, 4 00:00:10,160 --> 00:00:12,479 Speaker 1: sixty seven percent don't have as much work as they 5 00:00:12,480 --> 00:00:16,320 Speaker 1: did last year, No surprises there, while seventy percent think 6 00:00:16,400 --> 00:00:19,479 Speaker 1: that industry conditions will decline over the next twelve months. 7 00:00:19,720 --> 00:00:23,160 Speaker 1: Executive director of their Construction Industry Council is Tommy Honey. 8 00:00:23,160 --> 00:00:24,040 Speaker 1: He saw with me this morning. 9 00:00:24,040 --> 00:00:26,520 Speaker 2: Hey Tommy, thank sure, and Ryan, how are you doing? 10 00:00:26,600 --> 00:00:29,960 Speaker 1: Yeah? Good, thanks mate. I've been looking at a couple 11 00:00:30,000 --> 00:00:33,120 Speaker 1: of things. Housing can censor down. You've seen those stories 12 00:00:33,120 --> 00:00:37,479 Speaker 1: about developers going tits up as well. Who's this hitting hardest. 13 00:00:38,800 --> 00:00:42,320 Speaker 2: It's heading hardest of smaller builders. So those about half 14 00:00:42,360 --> 00:00:45,560 Speaker 2: of the builders in the survey generally in the country 15 00:00:45,880 --> 00:00:50,280 Speaker 2: have zero to five employees. So there are some big 16 00:00:50,280 --> 00:00:53,120 Speaker 2: companies around that employ a lot of people and do 17 00:00:53,280 --> 00:00:58,720 Speaker 2: very well, and they're probably riding through this crisis, you 18 00:00:58,800 --> 00:01:01,320 Speaker 2: want to call it that better than most. So if 19 00:01:01,400 --> 00:01:03,800 Speaker 2: you look at the smaller builders, there the ones that 20 00:01:03,840 --> 00:01:08,360 Speaker 2: are being hit hardest. And this is survey's extraordinary that 21 00:01:08,440 --> 00:01:12,160 Speaker 2: EBOSS surveys. There's a summary out, but if you're actually 22 00:01:12,160 --> 00:01:14,840 Speaker 2: look into the detail, there things that make a real 23 00:01:15,120 --> 00:01:18,000 Speaker 2: difference of what they call the forward workload or the 24 00:01:18,120 --> 00:01:21,280 Speaker 2: short shorthand that's pipeline how much work you've got coming 25 00:01:21,319 --> 00:01:26,600 Speaker 2: towards you. And for what is it thirty percent of 26 00:01:26,640 --> 00:01:29,960 Speaker 2: builders it's now down to zero to three months, and 27 00:01:30,440 --> 00:01:32,120 Speaker 2: some of that will be at zero. So people have 28 00:01:32,160 --> 00:01:33,880 Speaker 2: no work. There's no work out there at the moment, 29 00:01:34,600 --> 00:01:36,880 Speaker 2: and I'd say there's a sort of a perfect storm 30 00:01:36,920 --> 00:01:39,520 Speaker 2: with them. And once the economics slow down, which is 31 00:01:39,640 --> 00:01:43,480 Speaker 2: hitting us all. You know, the interest rates aren't moving, 32 00:01:43,720 --> 00:01:46,400 Speaker 2: but also in building, the material costs are going up, 33 00:01:46,440 --> 00:01:50,040 Speaker 2: so it's things have costing more. The second is the 34 00:01:50,160 --> 00:01:53,680 Speaker 2: kind of flat real estate market, and so people because 35 00:01:53,680 --> 00:01:55,240 Speaker 2: they can't get to sell their house for what they want, 36 00:01:55,280 --> 00:01:57,600 Speaker 2: they're just sitting and waiting. And it's the same is 37 00:01:57,600 --> 00:02:00,400 Speaker 2: true for building. So they might want to build house, 38 00:02:00,480 --> 00:02:02,280 Speaker 2: but they've got to sell their old one, so they're 39 00:02:02,320 --> 00:02:05,840 Speaker 2: not doing anything. So that kills that no one's renovating 40 00:02:05,840 --> 00:02:08,440 Speaker 2: their houses to put them on the market because they're 41 00:02:08,440 --> 00:02:10,480 Speaker 2: waiting for the market to change, So that kills that 42 00:02:10,639 --> 00:02:12,800 Speaker 2: part of the sector. And the third thing is the 43 00:02:13,040 --> 00:02:17,880 Speaker 2: change of government, which in itself isn't necessarily a cause 44 00:02:17,919 --> 00:02:22,520 Speaker 2: of this, but there's a bit of well I call 45 00:02:22,560 --> 00:02:25,400 Speaker 2: it wait and see on their part, the government's part, 46 00:02:26,040 --> 00:02:29,280 Speaker 2: and therefore on the whole market, everyone's just waiting and 47 00:02:30,360 --> 00:02:32,160 Speaker 2: the impact of sitting builders. 48 00:02:32,600 --> 00:02:34,760 Speaker 1: Tommy, thanks for that update, Tommy Honey with us. He 49 00:02:35,000 --> 00:02:39,000 Speaker 1: is from his executive director at the Construction Industry Council, 50 00:02:39,200 --> 00:02:42,000 Speaker 1: responding there to a new Eboss survey six hundred and 51 00:02:42,000 --> 00:02:46,000 Speaker 1: fifty KI builders basically saying, and most importantly, as Tommy 52 00:02:46,000 --> 00:02:48,680 Speaker 1: pointed out, the pipeline of work isn't there. So if 53 00:02:48,680 --> 00:02:51,840 Speaker 1: you're a builder, or if you're a trading even and 54 00:02:51,880 --> 00:02:55,720 Speaker 1: you're looking at these construction as sorry, developers going under, 55 00:02:56,320 --> 00:02:58,640 Speaker 1: and your pipeline of work isn't there, what do you do? 56 00:02:58,639 --> 00:03:00,919 Speaker 1: Do you bugger off overse? I mean if you can, 57 00:03:00,960 --> 00:03:03,000 Speaker 1: if you're mobile, you don't have kids, that sort of thing. 58 00:03:03,960 --> 00:03:06,840 Speaker 1: How do you weather the storm when your you know 59 00:03:06,919 --> 00:03:09,280 Speaker 1: your runway is looking so short in front of you? 60 00:03:09,800 --> 00:03:12,760 Speaker 1: For more from News Talks b listen live on air 61 00:03:12,919 --> 00:03:14,200 Speaker 1: or online, and keep 62 00:03:14,240 --> 00:03:17,000 Speaker 2: Our shows with you wherever you go with our podcasts 63 00:03:17,040 --> 00:03:18,120 Speaker 2: on iHeartRadio