Supply problems causing squeeze in stocks and pricing

The effects of Covid-19, problems at Auckland port and the boom in house building are combining to cause myriad supply problems for trades and suppliers throughout the construction industry.

From basic building materials through to flooring and fittings, materials are either becoming increasingly scarce or rising in price, or both, leading to frustration and budget blowouts for customers.

Sam Dyson, who looks after sales, design and project management at tiny house builder Eco Pod Concepts, says it has become a seller’s market lately, with prices and lead times going up, as well as low and no stocks of certain products.

“Our joinery suppliers lead time has doubled from two to four weeks and there doesn’t seem to be any 17mm flooring plywood left in the country,” he says. “We’ve also heard that a container of steel screw foundations coming from overseas used to cost $1500 to deliver and is now up to $7,800.”

He says the issue is causing uncertainty around committing to future projects and affecting quotes for the former Dairy Flat business.

“We’re having to itemise every item and say things are subject to materials being available due to shortages. The change of financial year has given companies the opportunity to draw a line in the sand and say we’re putting prices up. That’s having a knock-on effect.”

Rodney and Hibiscus Coast plumbing company Flowfix is also experiencing issues. Director Colette Freel says it has been a struggle getting hold of such items as showers and vanities for some time, and now raw materials like copper are becoming hard to obtain.

“We had one customer who wanted a vanity that took four months to get to us,” she says.

The situation is meaning less choice for customers, with many styles out of stock.

“We have received letters and emails from suppliers saying everybody’s trying to do their best to keep stocks up, but it is starting to affect our business,” Colette says.

It’s a similar story in floor coverings, according to The Flooring People’s store manager and director, Melissa Maher.

“Over the last year we have struggled getting many products, from underlay to carpet to vinyl,” she says. “Even some of our New Zealand-made carpets have components that come from overseas, so there have been delays in this, too.”

She says customers of the Whangaparāoa store are not always aware of the current situation.

“Once the media started reporting the delays it got better but some still don’t understand,” she says. “It has caused more work for us, as we are constantly chasing up orders and checking stock.”