PIPELINE OF WORK

Builders’ Business is a column by builders for builders. Its objective is to provide a forum, particularly for small business operators, in which to share knowledge, experience, tips and ideas

Q: How has Covid-19 and lockdown impacted your pipeline of work?

 

Firm: Gray Brothers Limited

Interviewee: Mark Ward (Joint Director)

Location: Dunedin

Staff: 10

We had four jobs cancelled at the start of lockdown – three residential renos and one commercial job. We still have work for two to three months, but we are looking closely at what work we have from September onwards.

We had a lot work until the end of March – it was shaping up as a really good year. It’s hard to predict from here. We might have two big jobs come in and be sorted for 12 months.

The Government has done a great job of saving lives from COVID-19, but people’s confidence is still dented. I’ve been through a number of recessions in my time building, so I feel like I have some experience, though this seems like people are expecting it to be worse.

 

Firm: Design Construction Limited

Interviewee: Graham Anderson (Owner)

Location: Christchurch

Staff:  2

Some of our work has evaporated. This seems to be due to the perception of the market – investors especially are perceiving that the market isn’t good to sell in, so they’re delaying their build plans. We’ve also had one job cancelled, because the clients re-thought their level of borrowing in an uncertain future.

Despite this, I am hopeful overall and positive about the future pipeline of work. I think we have a lot of Kiwis returning home – some will buy and some will build.

While I have traditionally dealt in upper-end architectural homes, surviving means adapting, so we need to look at smaller houses, because these builds are still happening.

On that topic, I think many of the homes New Zealanders have been choosing to build are bigger than what is needed, so this might be a time to correct that. Plus, people will renovate and change their existing house – in my experience, that’s what happens in a downturn, so we will look to pick up that work up too.

 

Firm: Broswick Builders Limited

Interviewee: Todd Wickenden (Director)

Location: Auckland

Staff:  18

A couple of our clients have indicated they will delay their builds by a month or so, but most of our work is still going ahead.

Next year is looking good for our workstream. We had a fair bit of forward work before lockdown, including a couple of big jobs, and these are still going ahead. We are also getting a number of enquiries for smaller reno jobs this year, probably the same level as usual, so this hasn’t changed for us either. It’s all pretty positive.

Even though we have good work lined up, I appreciate no-one knows what the impact might be – that’s the slightly scary thing. I’m keeping an open mind, though. There is no point worrying about what might or might not happen – that won’t get us anywhere.