MADE COMPLETE FOR CLEVER LIVING - JULY 2018
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JULY 2018
MADE COMPLETE FOR
CLEVER LIVING
Find out how one company is taking home
delivery to another level
HOW WILL THE INDUSTRY COPE WITH MORE
WORK THAN THERE ARE WORKERS?
With a raft of Government projects in the pipeline, what
will it mean for an already overstretched industry?
SUSTAINABLE BUILDING
Check out why more and more builders, developers and
homeowners are choosing to go beyond the building
code standard when it comes to sustainability
1
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CONTENTS WELCOME
Where have all the
builders gone?
Welcome to the latest Bunnings Trade Issue.
The Government’s committed to delivering
100,000 new homes. So who’s going to
build them?
Back in the day, if you went into a skilled
trade like building, you had a job for life.
Now as demand for new housing increases,
the industry is struggling to find enough
qualified tradies, so what’s going on?
The KiwiBuild project has committed
$2 billion to deliver 100,000 new homes
over the next ten years. But with only half
of the required workforce available, those
figures are looking less than concrete. Nikki
Mandow recently sat down with BCITO CEO,
Warwick Quinn to go through the numbers
and talk about how the industry plans to
meet the challenge going forward.
Our economic update picks up the theme,
looking at the economic effects of the labour
4 Clever Living Co.
A ready-built home from Bunnings? We take a tour.
shortage and what Labour’s housing policy
means for the building industry. We also talk
with Dave Kelly, CEO of the Registered
7
Master Builders Association, to get his
Sustainable building opinion on the issues and opportunities
From tree-hugging to embracing the new standard. presented by the KiwiBuild programme.
A definite positive of the boom is that it’s
8 Building essentials
Great deals on gear made for the trade.
driving the change toward sustainable
‘green’ building; an area where New Zealand
has largely lagged behind the rest of the
10
world, despite our clean, green image. Sam
Economic update Archer of the Green Business Council tells
The boom is here. So what does it mean for the industry? us that builders, developers and owners are
now exceeding the codes to ensure new
13 Latest Innovations builds are sustainable and energy efficient.
The latest and greatest new tech for the trade. Speaking of which, did you know that
Bunnings builds some of New Zealand’s best
14
prefab homes? Our new Clever Living Co.
Bridging the labour gap initiative is focused on producing a new
Building the skills we need for the future. standard of flexible and transportable
prefabs with top quality specs, including LVL
framing throughout. After almost a year in
market we took the opportunity to walk
through a recent build with Matt Jenkins
from Bunnings and builder, Simon Hinds.
EARN LEARNING POINTS
We think you’ll be impressed at the result.
Enjoy the read and keep up the good work.
#
WITH TRADE ISSUE Des Bickerton,
Commercial Manager.
Trade Issue contributes 1 point towards TRADE ISSUE JULY 2018
your LBP skills maintenance requirements.
Remember to record your learning. For any enquiries, contact us at
BunningsTrade@bunnings.co.nz
3
MADE COMPLETE
FOR CLEVER LIVING
With the launch of the Clever Living Co, Bunnings meaning buyers have the confidence of a fixed price to build and finish a
complete home that can be moved into straight away - a real selling point
launched an innovative, pre-built home solution that
for anyone who’s built in the past.
literally includes everything - and the kitchen sink.
Once a plan is selected, it’s just a matter of adding finishes and fittings, all of which
When you’re building a house, you can always count on Bunnings for what you are supplied directly by Bunnings. While upgrades are available on all features, the
need. But did you know that you can now order a complete, fully built home from comprehensive list of standard fittings in each home is impressive, including
us as well? Mitsubishi heat pumps, Kaboodle kitchens, Blanco kitchen appliances, Stein
The Clever Living Co. is an exciting new initiative from Bunnings, delivering fully bathroom fittings and Sengled smart home technology.
specified prefabricated homes, virtually anywhere in New Zealand. You can choose to The other clever part of these houses lies in their construction, employing
have the entire house built offsite and trucked in complete or have a home delivered hi-tech materials to achieve a combination of strength and value. Frames are
as a kitset and assembled on-site by a registered builder. constructed from LVL timber (Laminated Veneer Lumber), which makes it
The Clever Living Co. addresses a growing need for well-built, affordable stronger and lighter than conventional framing, but retains the cost advantages
and energy efficient houses that can be quickly constructed and easily transported. and sustainability of standard framing timber. LVL timber offers several structural
Uses range from worker accommodation on a farm to a family bach or in answer advantages, including a high strength to weight ratio and exceptional uniformity,
to the demand for affordable, good quality urban housing. The new brand follows due to the low variability and randomised layers of thin veneers, which are
a global trend toward design-focused, high quality prefabricated homes that offer pre-graded for stiffness.
buyers a serious alternative to the traditional design/build model. The Clever Living Co. launched in the second half of 2017, with a fully assembled
There are currently five home plans available with ten variations, ranging home at Fieldays. Several builds have already been completed and owners have
from two to four bedrooms, and spacious open-plan living areas. Specially commented that the levels of finish and fittings have exceeded their expectations.
designed for New Zealand conditions, each plan has been rigorously tested To find out firsthand how the build process takes place, Trade Issue caught up with
to meet or exceed local building codes. They’re also fully quantity surveyed, Bunnings Trade Account Manager, Matt Jenkins and Simon Hinds, of Competitive
Homes, Kapiti who walked us through the Clever Living Co. home they have just
completed in Otaki.
As the primary residence on a sprawling showjumping stud, the four bedroom
‘Dexter’ home already looks well established, surrounded by green paddocks,
although at this stage, the landscaping and decking are still to be completed.
TI: Matt, the Clever Living Co. brand is new to Bunnings Trade, how do you think
the product compares with your more established competitors?
MJ: The biggest selling point for the Clever Living Co. is quality. All the
materials are top notch and the list of inclusions is one of the best in the
market. You’re getting double glazing, energy efficient products and
premium insulation all standard. When customers experience the product,
it looks and feels like a proper home with high ceilings and great indoor
outdoor flow. When we launched this home, we had 36 people in the living
area and it never felt cramped.
4
TI: Tell us a bit about how the build came about.
MJ: It started when our clients visited the Bunnings Fieldays stand last year. They’d
seen our ad in the Farmlands brochure and we had a home set up on site.
They’d been looking at a few other options, including trucking an older home to
the site. We knew Clever Living Co. could meet their needs more cost
effectively.
TI: So what happened next?
MJ: I followed up, visited the farm and we sat down and went over the numbers. It
was clear that the Clever Living Co. would be the best option. They went with
the Dexter, which isn’t our biggest home, but it provided the flexibility of space.
The standard Dexter plan has two bathrooms, but they decided to remove one
bathroom to create extra living space. Once we’d finalised the plan and
upgrades, I handed the project over to Simon for the build.
TI: Simon, how many people were employed to work on the project?
SH: I oversaw the project, but the actual building work was done by just one
qualified builder and an apprentice. The kit makes it super efficient because all
the details are already sorted. The site had power and a grey water tank, so once
the structure was in place, it was a simple process of getting the sparky and
plumber to hook everything up.
MJ: The kits are a really convenient option for difficult or remote sites and several TI: Were any special innovations used in the build?
of the Clever Living Co. plans, like the Merino series, are specially designed for
SH: The whole process is pretty innovative, but mostly it’s in the materials, like
narrow sites.
the LVL Framing, the BGC weatherboards and Maglok flooring. They’re great
TI: So how did Bunnings contribute towards the build? materials to work with and because the multiples are all done to sheet size,
MJ: Well after finalising the design and the contract, the Bunnings team handles you get the best value from your materials too.
all the scheduling and delivery throughout the build. That’s probably the most TI: So how do the costs compare to a traditional build?
important thing - getting the product on site, on time.
SH: These homes are a bit smaller, so that’s going to push the per metre cost up
SH: Working with Bunnings means everything is available when you need it. a bit, but you’re still looking at around $2,000pm2 compared to $2,300pm2
Because it’s all centralised, you know where everything’s going to be on a for a standard build.
given day, a week out. Everyone’s on the same page and it makes the whole
TI: Matt, currently you’re promoting Clever Living Co. in the rural market, do you
process go a lot smoother.
see the brand expanding outside of this?
TI: And what are your key requirements of your suppliers when tackling a project
MJ: Absolutely. New Zealanders are already comfortable with the idea that a
of this size?
prefabricated home can offer all the style and amenities of a traditional house.
SH: It comes down to trust. Knowing that something is going to be there when you The government is pushing affordable housing and it’s a great cost effective
need it and that the project is in a safe pair of hands. option for first home buyers. We’re looking at opening showhomes starting
TI: Did you have to work through any challenges to get to the finished project? with Palmerston North and Paraparaumu.
SH: None at all really. It’s a pretty straightforward site and with Bunnings taking To find out more about Clever Living Co. homes, call the Bunnings Support Centre
care of logistics, it was just a matter of getting on with the build. It takes the on (09) 978-2200 and ask to speak to the Trade Team, email sales@bunnings.co.nz
pressure off us and in turn, it’s less stressful for the client. or contact your local Bunnings Trade Account Manager.
5
n 2009, Knauf Insulation bucked the trend in
insulation manufacture with the introduction
of the ECOSE® Technology binder. As a result of
five years intensive research, the development of
ECOSE® Technology was revolutionary and nearly a
decade later it continues to be a leading technology,
with other manufacturer’s striving to develop a
binder with the same credentials.
The ECOSE® Technology binder is made with no
added formaldehyde or phenols and is mainly based
on vegetable raw materials. It’s the absence of
formaldehyde from the manufacturing process that
has truly set Earthwool® glasswool insulation with
ECOSE® Technology apart from other glasswool
products. The trend in formaldehyde-free
specifications is also the sign of a sea-change in
construction with the sustainability and
environmental impact of building materials at the
fore. Retailers are getting on board too. In 2017 a
large US retailer removed all products containing
formaldehyde from its product portfolio in a bid to
meet demand for greener products and in 2013
Bunnings introduced Earthwool® glasswool as its
main line of bulk insulation products.
The natural brown colour distinguishes Earthwool®
glasswool insulation from other traditional products
and represents it’s high sustainability credentials.
Made using up to 80% recycled glass, Earthwool®
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For more information about ECOSE® Technology or
Knauf Insulation’s sustainability credentials visit
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6
SUSTAINABLE BUILDINGS
By Nikki Mandow
New Zealand’s building code, much of it unchanged over “Over the past few years, houses have skyrocketed in price but at the same time
the government is having to spend more and more on respiratory problems because
the last 15 years, is regarded as one of the least progressive
of people living in unhealthy homes. One of the biggest things with using the
in the OECD when it comes to environmental performance. Homestar standards is rebuilding people’s trust in new developments - that they
But with sustainability gaining importance worldwide can be healthy, energy efficient and perform well.”
and at home, increasing numbers of New Zealand Meanwhile, the Green Business Council’s Sam Archer says more people are
builders, developers and homeowners are choosing to also looking for higher environmental standards for their workplaces as well
as their homes.
go beyond the codes. Nikki Mandow reports.
The number of Green Star-rated commercial buildings in New Zealand increased
New Zealand markets itself as clean, green, 100 percent pure, but you’d never know that
from 1 in 2006 to more than 80 in 2016, and the numbers are increasing, he says.
from our building regulations. On an environmental scale from 1-10, where 1 is the
least “green” home you can imagine and 10 is the pinnacle of sustainable development, “In the last two years alone we’ve rated 150 buildings, more than half in Auckland.
New Zealand’s mandated building code standard sits around a 3 or a 4. The minimum We know that pretty much all the big downtown Auckland developments are using
for green certification by the New Zealand Green Business Council (NZGBC) is a 6. Green Star rating.”
It’s a frustrating situation for Sam Archer, Director of Market Transformation for Why the big boost for green offices? Sustainable building development is on
NZGBC, which runs environmental ratings systems for houses (Homestar) and the rise globally, Sam says, as people look for healthier work environments, lower
office buildings (Green Star), as well as an energy performance rating for office energy costs and a smaller carbon footprint.
buildings (NABERSNZ). And the 2016 Paris Agreement, which saw world leaders from across the globe ratify
NZGBC estimates 40 percent of New Zealand’s 1.8 million homes are damp or action against carbon emissions through the United Nations, means investors and
mouldy and one in six New Zealanders have respiratory problems. The health building owners know that carbon-reduction legislation will happen and they want to
cost to the country is $6 billion a year and energy wasted from our buildings de-risk their project. They don’t want to be faced with an expensive refurbishment in
has a significant impact on our greenhouse gas emissions. the future to meet new standards.
Things are changing, albeit slowly. The new Healthy Homes Guarantee Act, for Sam says the Government has a key role to play, because they control the
example, ups the ante for landlords in terms of insulation and heating. regulations, but also because they are responsible for so many building
projects. He says the previous Labour Government, under Helen Clark, committed
But there’s another change Sam Archer is seeing - a push from homeowners and
to using Green Star with all government buildings, and for some years all new
the construction sector for buildings that go beyond the codes.
school buildings were green rated. The National Government moved away from
“We’ve had a 10-fold increase in Homestar registrations over the last two years,” mandating Green Star, but the Green Building Council is hoping that will change
Sam says. “At the moment we’ve got 7,000 going through the process, as opposed to with the new government.
less than 500 certified before.”
Sam says Phil Twyford has already committed to all KiwiBuild homes exceeding the
Another encouraging sign is that instead of Homestar applications mostly being building code and has put Homestar in the most recent tenders for development
single homeowners wanting a sustainable home now they are increasingly coming sites. “Over time we’d hope Government would be demanding a Homestar rating on
from builders and investors doing multiple-home developments. all new homes.”
And it’s happening more and more in the private sector too. Building a green home or office mostly involves making the right choices, Sam says.
Take a current development in Waikanae, on the Kapiti Coast. The development It can be as simple as orienting a building in the right direction, and using glazing and
will see up to 850 homes, terraced houses and apartments built - all of them at shading to maximise the benefits of natural light and heat. It might mean using LED
a minimum 6 star Homestar standard, and hopefully most at 7 star Homestar or rather than traditional light fittings, and picking Environmental Choice New Zealand
above, says Gillian Boucher, sustainable development consultant with the project. (ECNZ) certified building products and low-VOC (Volatile Organic Compound) paints
and sealants.
She says the original owners of the land see sustainability, community and
preserving the quality of the natural landscape as key criteria for the project. But “Mostly we don’t need new, expensive technologies; we already have what we need
many homeowners will be more interested in getting a warm, dry, healthy property to design really low-impact buildings. People just need to understand which are the
which won’t develop structural problems and where electricity bills are manageable. best products and materials, and start using them.”
7
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HOW WILL THE
INDUSTRY COPE WITH MORE
WORK THAN THERE ARE WORKERS?
By Nikki Mandow.
In 2016, then Housing Minister Nick Smith talked At the same time, growth in non-residential buildings is forecast to grow 29%
over 2017 levels to reach $9.6 billion in 2019, the report says. “This growth
about an “unprecedented” construction boom,
continues for longer and to a higher level than previously forecast.” And
particularly in Auckland. Two years on, with a new infrastructure activity is also expected to increase by 32 percent between 2017
government pushing housing and infrastructure, the and 2022, to reach $9.5 billion.
forecasts are for even more growth than imagined by Construction levels are strongest in Auckland, and growth is likely to last longer
Nick Smith. And that growth will be more widespread in our biggest city than anywhere else - past 2022, according to the pipeline report.
and last for longer. Nikki Mandow looks at what that Apart from Canterbury, which is at the end of its boom time, and Wellington, where
means for the building industry. activity is fairly flat over the next five years, construction looks strong across most
of the country.
Depending on your viewpoint, the figures coming out of the fifth National
Construction Pipeline Report are either exciting or daunting. Exciting because The KiwiBuild factor
no one in the building sector is going to be short of work for quite some time. It’s not clear exactly what part KiwiBuild will play in all this growth. We know
Daunting if you wonder (as many are) how an already over-stretched sector is that through KiwiBuild the Government plans to spend $2 billion to deliver
going to cope with even more growth. 100,000 homes over the next decade, half of them in Auckland. That’s the
In brief, the latest pipeline report, published in July 2017 forecasts total building so-called “affordable” segment of an estimated 160,000-home shortfall over
activity rising 23 percent to a high of $42 billion in 2020 - that’s $5 billion more the next 10 years.
than was being forecast even two years ago. The project starts slowly. The masterplan envisages only 1000 new KiwiBuild houses
The lion’s share of the growth will come in residential construction, where building over the next 12 months, with the target rising to 5000 in the 2019-2020 year and
will be, as Nick Smith said, “unprecedented” – at least in terms of “dwelling units” 10,000-12,000 a year for the eight years after that.
consented. We’ve already exceeded the 31,000 consents issued at the peak of the But it’s not going to be easy. Acute skills shortages are already hitting building
previous building boom in 2004 and we’re now heading for a new peak of around companies hard. Anecdotal evidence suggests many companies, particularly in
34,500 consents in 2019 and 2020. Auckland and hotspots like Queenstown could happily take on up to 50 percent more
workers or contractors, if only skilled people were available.
“This growth was not forecast in the 2016 report,” the authors say. And it’s coming
on top of double digit growth in 2016-2017. The Ministry of Business, Innovation and Employment’s 2017 “Future demand for
construction workers” report estimates that across New Zealand demand for construction
employees is projected to increase on average by 11 per cent between 2016 and 2022.
That means another 56,000 construction-related workers needed by 2022.
Auckland alone will need an extra 28,000 workers. But a shortage of workers isn’t the
only problem facing KiwiBuild and wider construction targets.
Rapidly rising building costs is also a problem when you want “affordable” housing.
Master Builders estimates residential construction costs have increased by 10
percent over the last year, at a time when inflation barely squeaks above 1 percent.
Part of that is labour, but materials are also going up, as are warranties, health &
safety equipment and compliance, insurance, building consents, legal fees, and
infrastructure costs.
10And the cost increases and delays associated with the building boom are
causing financial headaches for some in the industry.
Fletcher Building’s financial woes have been well-documented, including
$660 million losses in its Building + Interiors division from big, unexpected
cost increases on major projects like the International Convention Centre in
Auckland and the Justice Precinct in Christchurch.
A plethora of smaller companies have gone bust over the last 12 months,
including Tauranga-based Landmark Homes, the Gisborne franchise of A1 Homes
and Auckland Builders Point to Point Holdings.
Media reports suggest around 160 Canterbury-based building industry
companies went into liquidation during the 2015-2016 construction boom
after the Christchurch earthquakes.
Land, infrastructure and finance
Meanwhile, finding enough land to build all the new houses won’t be easy, and is
likely to need planning changes, including getting rid of rural urban boundaries
(RUB) around cities including Auckland. These RUB divides stop land being
zoned for housing outside the city limits, but removing them could bring house
values down - and that won’t be popular with ratepayers.
As the Productivity Commission pointed out in one of its reports, local planning
rules give a lot of political power to the not in my backyard brigade.
Then there’s the problems of how to pay for the billions of dollars-worth of
infrastructure to service new housing developments - let alone how to finance
building the homes themselves.
Housing and Urban Development Minister Phil Twyford estimates it’s going to
cost $5.4 billion just to pay for the new residential housing projects planned over
the next four financial years, with KiwiBuild a big part of that. But it’s not clear
where that money will come from.
The Government’s Overseas Investment Amendment Bill (commonly known as the
foreign buyers bill) puts significant restrictions on overseas investors who want to
A
uckland alone will need an
buy into big housing developments. That may need to be revised if Minister extra 28,000 workers. But a
Twyford is to get funding for all the homes he needs.
shortage of workers isn’t the only
problem facing KiwiBuild and
wider construction targets.
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13THE GROWING SHORTAGE OF
SKILLS IN A THRIVING INDUSTRY
By Nikki Mandow.
The construction industry is experiencing a perfect Legislation that’s fit for purpose
storm - a worsening skills shortage and booming The present industry training framework was established more than 25 years ago
demand. To have a chance of succeeding with under the 1992 Industry Training and Apprenticeships Act “and no longer reflects
how the construction industry and many other sectors operate”, the briefing
ambitious projects like KiwiBuild, things just have to document says. In particular, BCITO wants to be able to design what they are calling
change in the way we train and upskill construction “stackable” credits - where people acquire individual, specific skills that can be
workers, says the Building & Construction Industry “staked” towards a full qualification.
Training Organisation (BCITO). And the Government “Those skills that relate to restricted building work under the licensed building
has a role to play. practitioner scheme should also be recognized and the Government then has the
ability to require formal qualifications in order to get a licence…something that has
When BCITO chief executive Warwick Quinn looks at the numbers, he knows he’s got been delayed for many years,” he says. “The current qualifications and funding
a problem. To meet construction needs over the next five years, New Zealand needs mechanisms don’t accommodate this flexibility very well and we need a rethink.”
some 56,000 new workers, of which approximately half need a trade qualification.
Raising the status of building qualifications
That’s approximately 28,000 people.
A significant problem with getting school leavers into the construction industry is the fact
The trouble is BCITO estimates that if nothing changes, only about 12,500 qualified
it’s viewed as a second class career pathway, with trade qualifications sitting at levels 4-6
trained apprentices and trainees will enter the workforce over the same period - less
in the qualifications framework as opposed to degree qualifications at level 7.
than half the number we need.
“In other words, entry level academic qualifications are given greater formal status
The demographics aren’t in our favour either. Fifteen years ago, New Zealand’s birth than even highly advanced technical education. This sends signals that a ‘vocational’
rate dropped to its lowest ever, meaning fewer school leavers coming through. This career is inferior to an academic-based one, affecting the decisions of potential
is exacerbated by the fact schools tend to push students towards university not learners and those who influence them, such as parents and teachers.
trades. Meanwhile, the unemployment rate continues to fall, creating greater
competition for employees. “We recommend the qualifications framework be reviewed so the position of
vocational qualifications more accurately reflects the relative complexity of these
On the industry side of the equation, only 10 percent of construction firms train at programmes.”
any one time, and only 20 percent train at all. In some cases (the plumbing industry
is one example) there are apprentices looking for work, but not enough employers Let ITOs provide training
willing to take them on. Historically, industry training organisations (ITOs) were banned from providing
training because of possible conflicts of interest, BCITO says. This restriction
One of the main reasons companies don’t take on trainees is the businesses are
increasingly provides a compliance issue for ITOs “that provides little benefit for
small. Some 65 percent of all construction firms are one-person bands and 91
learners, individual firms or industries”.
percent have five staff or less. Most feel they are too busy to take on an apprentice,
and see training as hard and expensive, Warwick says. Offer higher-level “on-the-job” qualifications
“Competition for work is fierce and small sub-contracting firms are not incentivised “Measures such as eliminating the cap on higher-level training…could provide the
to train by either the contracting signals they receive (lowest price wins) or the industry with much greater flexibility to upskill a workforce where demand for
training options available to them. While this model is good for consumers and supervisory and management expertise is increasing, but supply of these skills is
reduces risk for principal contractors, the consequences of this system is a lack of severely lacking,” the BCITO proposal suggests.
investment in innovation, R&D, and training.” Alternative funding streams
Firms are also increasingly specialised, Warwick says. One company might just The industry training system requires all ITOs to be co-funded by industry and
build and fit windows, another might be a specialist kitchen installation business. Government, but Warwick says the cost can make it hard for smaller companies to
The one-size-fits-all apprenticeship schemes mandated by the current legislation take on trainees.
make it hard to design flexible, responsive training, he says.
“As well as the direct financial cost involved in training, employers effectively
All of which needs a rethink from both the industry and government, Warwick says. In a provide a significant in-kind contribution in the form of lower staff productivity, the
recent briefing to Education Minister Chris Hipkins, BCITO came up with nine proposals: cost of materials required for rework and the like,” the BCITO says.
14“We propose the government work with industry to establish a construction labour
force supply monitoring and development unit. We can then use whatever levers we
have available to incentivise or disincentivise training.”
A more diverse workforce
The building and construction workforce is largely older, white and male, BCITO
says. The organisation wants the government to investigate and support (where
appropriate) initiatives to attract Maori, Pacific and Asian ethnic groups into the
sector, as well as to lift the number of women. At the moment only 2.6 percent of
apprentices are female.
Align training and immigration
A short-lived ‘apprenticeship reboot’ programme introduced in 2013, which provided In a perfect system, the building sector would train the right numbers of people to
a $1000-$2000 per-apprentice subsidy to employers saw apprentice numbers grow meet market demand, relying on immigrant workers only as a ‘safety valve’ in the
by 92 percent and employer numbers by 73 percent, BCITO says. skills pipeline. In practice, BCITO says, companies and the Government have in the
past relied heavily on skilled migrants as the primary pathway to meet high
“We propose the government partner with the construction industry to trial a financial
construction demand, discouraging investment in training and leading to an
incentive programme to support those employers who train.”
increased shortage of workers.
Use public sector procurement
“We propose the government ensures New Zealand’s education and immigration
“One straightforward, low-cost and low-compliance method of encouraging training frameworks are complementary and not competitive.”
would be through the government’s own procurement policies,” BCITO suggests. “By
Could it happen? Warwick is cautiously optimistic. He has had meetings with several
requiring or encouraging public sector agencies to include firms’ participation in
Ministers before and after the election and two of the suggestions - establishing a
training within their procurement evaluation and selection criteria the Government
Government construction labour force monitoring and development unit, and
would strongly incentivise the industry to invest in developing the workforce.”
developing specialist micro-credentials - formed part of Labour’s election manifesto.
Better workforce planning
“The current Government is investigating direct employer support for firms that train
Lack of pan-industry monitoring of the construction workforce and skills levels has and will need to review the NZ Qualifications Framework should micro-credentials be
led to companies stopping investing in training during downturns, which in turn ratified. This provides the opportunity to reposition vocational learning more equally
leads to skills shortages when demand picks up again. with degree qualifications, something they have done in Scotland,” he says.
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