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Construction And Building
Stockpiling headlines have become somewhat ‘old news’ in recent times, but the most recent iteration of hoarding has more far-reaching consequences than bare toilet roll aisles.
In the face of shortage rumours and low-level shortages to certain materials caused largely by logistical issues due to the pandemic - building companies have been hoarding building supplies. Unfortunately, as is the case with toilet roll panic buying, this over buying and stockpiling actually causes the shortages the rumours spoke of.
The consequences of this timber and supply stockpiling are presenting themselves not just in an availability shortage – but also in the cost of what is available. Reports of containers which should cost around the $500 mark are going for well over $5000.
The Ministry of Business, Innovation and Employment (MBIE) has posited a potential solution – banding together in order to place a larger order with an overseas supplier and perhaps even piggybacking off orders destined for Queensland. The Ministry of Business, Innovation and Employment has indicated that it will wait a few months to gather more information on the situation before encouraging the government to make any regulatory changes.
The balance between actual shortage and a market demand for new construction is being measured in a survey which has been issued to several thousand industry players to discover which products are in short supply and the impact of these shortages on prices.
When issues like this hit an industry like construction and building, contracts and timelines can suffer badly. Reach out today and talk to one of our team members about the types of insurance that can help your business in times like these.