PlaceMakers: 'You'll soon be seeing price changes'

Anne Gibson, NZ Herald,
Publish Date
Thu, 5 May 2022, 10:30am
PlaceMakers has updated customers about price rises, supply issues. (Photo / Supplied)
PlaceMakers has updated customers about price rises, supply issues. (Photo / Supplied)

PlaceMakers: 'You'll soon be seeing price changes'

Anne Gibson, NZ Herald,
Publish Date
Thu, 5 May 2022, 10:30am

Fletcher Building's national retail chain PlaceMakers has delivered further price rise and shortage information to customers and revealed Pink Batts has had production issues.

Customers were told of 22 products going up in price from now till July, shortages in seven crucial categories of goods and to order Gib now for July.

"Pink Batts have had some recent production issues that may cause some additional short term shortages over the next two to three weeks. No Pink Batts are being distributed from their factory this week," the business said.

Pink Batts has a major market share in the wall, ceiling and underfloor insulation sectors. Its factory is at Penrose, very near Fletcher's headquarters which are on Great South Rd.

In Tuesday's communications headed "price and supply update", PlaceMakers blamed wider issues for the problems.

This week, Stats NZ said that for the first time, New Zealand residential building consents applied for had smashed the 50,000 a year barrier. More houses are being built in this country than at any time in its history.

In the year to March, 50,858 consents were issued for residential units, with the numbers of apartments up significantly. There were 25,475 multi-unit homes consented in the year to March, up 40 per cent annually, Stats NZ said.

PlaceMakers cited building product demand continuing to outstrip supply, the pandemic and trouble getting goods shipped here. The softening New Zealand dollar and significant freight and raw material price rises were also cited.

"This has been exacerbated by the impact on production from Covid absenteeism, domestic freight and global demand," the business said.

"You'll soon be seeing price changes," the business said, going on to list the 22 categories.

James Hardie HomeRAB is going up in price this month by 25 per cent, its fibre cement products 6-10 per cent, Bricks 9 per cent, structural timber 5-10 per cent, plywood 5-8 per cent, outdoor timber 5-12 per cent, Velux skylights 7-9 per cent and Futurebuild LVL 7-10 per cent.

Next month, polystyrene prices will rise 11 per cent, timber weatherboards 3-10 per cent, Glulam timber 6-10 per cent, doors 5-13 per cent, timber mouldings 3-10 per cent and translucent roofing 7.5-10 per cent.

In July, LVL framing timber prices will be up 15 per cent, grey masonry 10 per cent, readymix concrete 9 per cent, bagged concrete 10 per cent, steel reinforcing 8 per cent, glass wool insulation 7.5-10 per cent, aggregates 10 per cent and Paslode tools and fastenings 5 per cent.

Then, the seven products hit by supply shortages were listed.

"There also remains an imbalance between supply and demand in the following categories, which is frequently resulting in longer and sometimes uncertain lead times:

  • Frame and truss production;
    • Structural and other timber products;
    • Steel mesh, bar and roofing;
    • James Hardie fibre cement products;
    • Structural flooring;
    • Structural plywood;
    • Some imported products.

PlaceMakers also updated customers on the Gib shortage, where if it's being trucked to sites, the supply is limited to only those sites ready to apply it. That is a move to try to prevent stockpiling.

Gib remains challenging, despite high production volumes from their factories, it said.

"From this week we are able to place orders for July delivery. There is still product being delivered to us from older orders in the meantime. However, the amount we can order is strictly controlled and many branches are already at their full capacity for deliveries in July.

"A reminder that where the product is being delivered direct to site, those sites must be ready for the product. Deliveries to warehouses, containers or sites which are not closed in will not be completed. This helps with getting as much Gib as possible to customers when they need it," the business said.

The Herald has previously reported on what Fletcher is doing to relieve that critical Gib supply.

Increasing production, controlling supply and building a vast new factory is the three-step plan on which the national business is pinning its hopes.

After extraordinary stories were revealed lately about prices and people's actions to try to get their hands on Gib, Fletcher has outlined steps being taken to cope with unprecedented demand.

Included in that plan is opening the new $400m Tauranga plant next year.

Fletcher Building is trading down on the NZX at $6.06, giving a market cap of $4.7b.