Construction Sector Accord supply chain research issued

Just over 600 businesses (including suppliers) in construction and infrastructure were surveyed in late May and early June 2021. The survey identified the following three key issues:

• increases in the price of materials and supplies
• shortages of materials and supplies, particularly structural and non-structural wood products
• shortages of experienced/skilled staff.

Accord Ministers were briefed on the findings and feedback from the Accord Steering Group. Key actions are focused on better information and planning as well as connecting on the medium to longer term work that is led across agencies. This includes:

• Accord works with key client agencies on how contract variations might reduce possible stockpiling behaviour
• Accord, industry and government agencies continue to maintain watch over supply chain constraints, led by Ministry of Transport inter-agency forum
• Accord and industry provide greater visibility on product lead in times
• Infrastructure Commission to use the pipeline to support better coordination of skills and supplies
• Infrastructure Commission to consider construction and infrastructure supply chain resilience and innovation
• Update MBIE guidance on product substitution to reduce over-reliance on specific products

There is no quick fix to these issues, given the ongoing pandemic, the complexity of global freight issues, global demand for construction raw materials and products (particularly timber and timber products), and the fact that New Zealand is a geographically distant market with relatively low purchasing volumes.

The Accord’s survey will be repeated at a later date, to be confirmed.

Supply Chain Research - Stage 1 - Final Report [PDF, 482 KB]