Master Builders Welcomes The Productivity Commission’s Inquiry Into New Zealand’s Resilience To Supply Chain Disruption

The Registered Master Builders Association has welcomed the Productivity Commission’s inquiry into New Zealand’s economic resilience to supply chain disruption.

“This is a positive step in exploring how New Zealand can improve its future resilience to supply chain disruption. We currently have a short-term and reactionary approach to such issues, but need to employ long-term, counter cyclical thinking to avoid the same situation that we face today,” said Master Builders CEO, David Kelly.

In Master Builders’ recent State of the Sector survey of over 1200 industry participants, 96% said that supply chain disruption in concert with product availability and increasing product substitution was one of the most critical issues they faced.

“The pandemic showed that the construction sector, like other areas of the economy, is vulnerable to these unpredictable disruptions. We are likely to face more of these situations in the future. Climate change is one area which has the potential to create further disruption, alongside other economic issues or further pandemics.”

“The disruption faced over the past few years was exacerbated by organisations panic buying and hoarding product. The sector is still working through this issue.”

“Ensuring security of supply through such disruptions is a critical issue for New Zealand, and we are pleased to see the Productivity Commission working through the different possible scenarios. While there are other similar sized economies to look to, many of these are in Europe so do not face the additional challenge of distance. As a price taker which is separated from other countries, New Zealand needs to think differently.”

“Master Builders looks forward to engaging with the Commission and the sector on this issue, to ensure it moves quickly”

© Scoop Media