23 February 2023

The construction sector in the Wanaka area is booming!  Based on 2022 Infometrics data the construction segment was the largest contributor from a GDP perspective in Wanaka accounting for 13.8% of the total GDP.  Wanaka is also batting well above the national average given construction accounts for only 6.9% of the National GDP.   

From a growth perspective Wanaka area experienced an 8.2% uplift in the ’22 year which from all accounts is likely to continue at the same pace.

This extra demand for construction is great but without a constant uplift in material supply and labour availability cracks start to appear very quickly.

A whopping 50% of workers in New Zealand are going to be looking for a new role within the next 12 months, according to a recent survey by Employment Hero.  For the majority of trade business, who are already grappling with historically low unemployment at 3.4%, inflation skyrocketing to 7.2%, supply chain restraints and project delays, its tough work out there.

After a strong rebound from the initial COVID-19 outbreak, the Great Resignation is real and it’s happening to tradies across the country. It is an employee market out there so developing a compelling employee value proposition for your trades business has never been more important and in Wanaka that sometimes means looking at how to supply affordable accommodation to your teams.

The term “growing broke” also comes to mind as growth requires extra cash (liquidity).  Your sales can be up, but your debtors and costs are also up, hence there can often be a bigger ask on your bank overdrafts and short- term working capital facilities.  These are issues that all growing businesses face and understanding your cash conversion cycle is imperative to running an efficient business.

At Findex we're here to help with our tailormade Tradies Academy programme to help you supercharge your trades business. This is a performance improvement programme that has been specifically designed to meet the needs of trades businesses.

Focus areas include:

• Strategies to attract and retain staff.

• How to keep a level head and manage your finances during times of disruption.

• Methods you can implement to stop working long hours and spend more time with the family.

• Technology and systems that can help supercharge your efficiency and output.

• Get help supercharging your trades business

We’re hosting an evening for trade business owners on Thursday 23rd March in Wānaka to hear from our experts on the learnings they’ve developed from working with hundreds of tradie business owners.

Click here to register and come along.

See our disclosure information on our website.

February 2023