New Zealand has ‘dropped off’ global supply chain

By Andy Brown16 August 2021

Auckland in New Zealand. Image courtesy of Vishal Makwana

New Zealand has been dropped off the global supply chain by many construction material suppliers due to the Covid-19 pandemic, according to Julien Leys, chief executive of the New Zealand Building Industry Federation.

According to reports in New Zealand, Leys said, “Before Covid the supply chain appeared to be fine, but the pandemic exposed the fact it was a lot more fragile than anybody realised. We have to find a way to manufacture things ourselves and fill those supply gaps.”

Leys also said that, in many cases, supplies were getting only as far as Australia – he added that due to Australia’s infrastructure push there was also a worry that skilled construction workers would look to leave New Zealand for their near neighbour.

A recent report from independent global construction and property consultancy Rider Levett Bucknall (RLB) also highlighted the challenges being faced by the New Zealand construction market.

RLB’s 2nd Quarter 2021 International Report says that, while the New Zealand construction market has navigated the Covid-19 pandemic well, labour shortages coupled with global supply chain disruptions continue to put pressure on construction costs.

Stephen Gracey, managing director of RLB New Zealand said, “While there was a decline in the volume of construction activity in the last quarter of 2020 and in to 2021 with a number of large projects completing, most contractors were able to trade through what has been a challenging and uncertain time and the forward pipeline of work is strong.

“That said, over the last few months there has been significant supply chain issues since the lockdown causing delays, uncertainty, and increased cost.”

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
Can machine learning help mend the contracting system?
How artificial intelligence can help contractors more accurately estimate the length and cost of construction projects
Investing in workforce wearables on construction sites
Exoskeletons can increase worker productivity and comfort, but there are issues to be avoided 
Does engineering design matter for Asia’s future infrastructure investments?
Asia’s future infrastructure is facing increasing scrutiny of its sustainability, constructability, bankability, and resilience
CONNECT WITH THE TEAM
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail: andy.brown@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA