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New Zealand has 鈥榙ropped off鈥� global supply chain

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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 .

According to reports in New Zealand, Leys said, 鈥淏efore 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.鈥�

Leys also said that, in many cases, supplies were getting only as far as Australia 鈥� he added that due to Australia鈥檚 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.

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, 鈥淲hile 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.

鈥淭hat said, over the last few months there has been significant supply chain issues since the lockdown causing delays, uncertainty, and increased cost.鈥�

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