New Zealand 'dropped off global supply chain' by many construction material suppliers

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New Zealand has been dropped off the global supply chain by many construction material suppliers in the wake of COVID-19, threatening to stall the building sector here, a report has warned. 

Rider Levett Bucknall’s (RLB) 2nd Quarter 2021 International Report says, 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: “While there was a decline in the volume of construction activity in the last quarter of 2020 and into 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. That said, over the last few months there have been significant supply chain issues since the lockdown causing delays, uncertainty, and increased cost. We are now seeing other cost pressures within the industry led by significant supply chain issues and associated shipping costs, international commodity prices, and increasing local labour and compliance costs,” said Gracey. 

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