We’ve recently reported on the fact that 2019 is looking like a very strong year for construction volumes in New Zealand, with a $6.11bn quarter-on-quarter increase in building work.
Whilst this is great news for the health of the building sector as a whole, a downside for businesses in the construction industry is the continued shortage of skilled labour to meet that demand, with many firms struggling to find and maintain the right staff.
A report by Hays on recruitment vacancies across the islands highlights the scale of the problem, with an increase in vacancies advertised in the commercial, residential, infrastructure and leisure construction sectors. The skills in demand include professions such as quantity surveyors, project managers and site managers, with skilled tradespeople also particularly in demand on the South Island.
Unsurprisingly, the growing imbalance between construction demand and available labour is reportedly leading to upward pressure on salaries and contract rates in many areas as firms compete for available labour. This is, of course, bad news for many construction firms who are already seeing the effects of squeezed margins on their business.
If you’re an operator in the New Zealand construction industry it’s crucial that you seek to protect the long-term viability of your business. It’s worth seeking professional advice on how to best manage the risks facing the industry. As a specialist construction insurance broker, Bonded NZ can provide independent advice on the options available for protecting your business. To help future-proof your business, contact us today for a no-obligation discussion.