“Builders Are Carrying It — But They Can’t Much Longer” – Fuel Costs Hit Breaking Point

A nationwide survey by Combined Building Supplies Co-operative (CBS) has revealed New Zealand builders are under immediate and growing pressure from rising fuel and freight costs — with clear signs the impact is accelerating across the industry.

The survey, completed by hundreds of CBS members across the country, shows over 84% have felt moderate to significant impact from fuel price increases in just the past 30 days .

CBS CEO Carl Taylor says the results reflect what builders are experiencing day to day.

“This isn’t coming — it’s already here. Costs are rising fast, and builders are the ones wearing it.”

Where builders are feeling it most:

• Travel to and from site (86%)

• Delivery and freight charges (49%)

• Supplier price increases (48%)

• Flow-on impacts into subcontractors and plant costs

At the same time, 67% of builders say suppliers have already increased pricing or introduced fuel-related surcharges, with some reporting increases ranging from 5% through to 30%+ across key materials and freight .

Despite this, over 60% of builders are still absorbing the cost increases, with only a small portion fully passing them on to clients .

Builders responding to the survey were blunt:

“Every job is costing more. Fuel, freight, deliveries — it’s all going up.” “We’re trying to hold pricing, but it’s getting harder by the week.”

“It’s not just fuel — it’s everything that moves because of it.”

Taylor says a particularly concerning trend is emerging around fixed-price work.

“We’re hearing from builders who have locked in fixed-price contracts and are now being hit with rising costs they can’t recover.”

Some respondents warned of the real consequences:

“Businesses priced tight to win work simply won’t have the margin to cover these increases.”

“This could push companies that are already on the edge into liquidation.” “Projects that were priced months ago are now at serious risk.”

Beyond immediate cost pressure, builders are increasingly worried about what comes next.

• Profit margins (34%) and cashflow (20%) identified as the biggest risks • Growing concern around project viability and winning new work

• Overall concern levels sit heavily weighted toward the high end

Taylor says the industry is now entering a familiar and dangerous cycle.

“Costs are building quickly. Builders absorb it, margins disappear, and eventually it flows through into higher prices.”

He says the broader impact could be significant.

“You start to see hesitation — clients pause projects, pricing becomes harder to lock in, and confidence drops. That’s when activity slows.”

“Fixed-price contracts and rising fuel costs don’t mix — and right now, that pressure is landing squarely on builders.”

CBS warns that continued fuel volatility could undo recent signs of stability in the construction sector.

“We were starting to see some balance return. This risks pushing the industry back into a tougher position.”

The co-operative is continuing to monitor the situation across both builders and suppliers as cost pressures escalate.

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