Supply chain issues in the building industry

Supply chain issues in the building industry

It’s been brewing in the background for a while now. A little bit like your grandmother’s home-made ginger beer, waiting for the moment to pop all over the tidy pantry and peach preserves. Supply chain issues in the building industry have not been quite so explosive but they have certainly been brewing for some time.

The lure of offshore manufacturing

Without doubt, the Covid-19 pandemic has cemented the tightening situation in global supply chains. Not just building supplies but all manner of goods manufactured offshore are impacted. While manufacturing used to be something we did here in New Zealand, the lure of lower production costs has been hard to resist. And so much has gone off shore. Think lower labour costs, access to global distribution systems, communication links and digital connectivity.

New Zealand has done well

Not giving it a second thought, for a number of decades now, we’ve expected containers to efficiently roll off humongous ships at our ports in a never-ending steam. Saying that, relatively speaking, New Zealand has done well navigating the new build sector of the market since the first lock down in March 2020 but obvious pressures on global supply chains is seeing that situation develop.

Not insurmountable challenges

The reason there’s a shortfall in components impacting the building industry is complicated. Certainly, it’s been exacerbated by the level 4 lock down in Auckland, changes to global shipping routes aside. However, it’s likely imports will remain an issue for some time. Science reporters are predicting it’ll take us three years to navigate through the more immediate challenges of the pandemic. So that’s a fair while but these are not insurmountable supply chain challenges.

Prefabricated panels a significant advantage

Encouragingly, there are a number things which can help keep your new build moving. While timber framing is seeing shortfalls, Longview’s prefabricated panels* are not, which is a significant advantage in a situation where supply chains of some new build components are tight. Likewise, is the uptake of alternative local solutions with companies wanting to avoid the pinch of supply chain issues. Replacing short supply components with an alternative. Think strong wool insulation instead of pink batts for example.

The perfect storm

Of course, it’s not always as simple as that, and it’s not just about the disruption to the goods and materials supply chain but the labour supply chain as well. While supply and demand fluctuations are not new to the building industry there’s nothing like closed borders, disruption to international shipping routes, labour shortages and robust demand to create the perfect storm.

New builds continue to progress at pace

With careful planning, the ability to make changes to the original design or to replace short supply components with an alternative, can relieve the pressure caused by supply chain disruptions. And new builds continue to progress at pace. As a country we haven’t been this busy building new since the 1970’s. So know that your experienced build team at  Longview Homes will communicate every step of the way, to ensure you have realistic timelines, meeting any mutually agreed changes to specifications perfectly. And know you’ll get full transparency every step of the way on your exciting new build journey with Longview.

*Metra Construction Panel System TM – be sure to check out the many advantages of using prefabricated panel technology. Longview Homes absolutely stands behind its fantastic, prefabricated panel technology.

Get in touch with our team or call 0800 100 945 to start your exciting new build journey today.

Longview Homes is a New Zealand owned and operated company.  Local franchises around the country are either members of  New Zealand Master Builders or New Zealand Certified Builders. Longview Homes builds both custom and pre-designed warm, dry homes of exacting quality, built to last. It would be our pleasure to take on your building project.

 

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