National Building Industry Confidence Survey
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Below are the findings of the eboss Building Confidence Survey that over 500 eBoss subscribers participated in.
There are many positives that came out of the survey, that demonstrate the industry is not falling apart, there are signs of a recovery already, and we need to ensure that we don’t talk ourselves into a worse situation than we actually have.
Once again thanks to all those who participated in the survey. We will continue to conduct regular surveys to ensure that people from within the industry have your views reflected in the media.
Regards,
Matthew Duder
 The full report can be downloaded here
There were two strong messages from the eboss Building Confidence Survey
Recovery is on its way and there are things businesses and the government can do to speed the turnaround
- 98% say the situation will get worse over the next year before it gets better, but 90% are positive the industry will recover within 2 years,
- Strong business, political and community leadership is needed to ensure we don’t talk ourselves into a worse situation than we actually have. Avoid mistakes of previous recessions, which was essentially to close the country down.
- Businesses need to stay confident. Don’t stop spending on marketing and advertising or training, and meet the market where it is now, which is renovations, higher end homes ( as opposed to Group Home projects), and commercial work
- Government needs to fast track planned projects – for schools, Housing NZ, hospitals, etc.; Get the infrastructure package moving and ensure the $500million infrastructure package announced is spread across small businesses, as this has a multiplier effect; Simplify Building Consents (50.8%) and reform the Resource Management Act (44.2%) without delay
Almost 90% of the industry say Building Consent numbers will be well above the bleak forecast of 13,000 made by some industry commentators
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Two thirds of the industry believe total Building Consent numbers for 2009 will land on 17,000 or less, and industry experts say the number required to sustain the industry is 20,000. But, Building Consent numbers don’t tell the whole story…
- The eBoss survey has shown that 2/3 of the industry have at least 3-6 months of work on their books, which is good lead indicator of what will happen to Building Consents
- The current downturn has a silver lining: The current situation opens the door to address the RMA and Building Consents issues that most agree has been stifling growth in the industry
- 20,000 is the magic number for a healthy, sustainable industry. To get back up to that number, government needs to invest in infrastructure and housing projects, and sort out the RMA and Building Consent process.
- The reality is New Zealand has a housing shortage, low interest rates, positive net migration so it is actually the perfect time to be building!
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