Tauranga builders taking Rotorua work

Rotorua builders are doing it tough as contractors from Tauranga take local work in an already "patchy" market.

Building is inconsistent at the moment with not a lot happening around the city, a situation not helped by out-of-town contractors getting Rotorua work, says the Registered Master Builders Association's Rotorua president, Bill Clement.

"There are a few people that are quite busy but most are just getting by.

"One of the problems is that we have a lot of out-of-towners coming over to work, especially from Tauranga. They have a huge market over there and not a lot of work so it's easy enough for them to come here."

Rotorua District Council figures showed 82 building consents (includes new and amendments) were issued in January, the lowest monthly figure for at least seven months. In the year from July 2010 to June 2011, 2250 consents were issued but in the seven months since there have been just 860.

Mr Clement said one of the only big local developments at the moment was the Mitre 10 Mega project, due to begin construction next month.

"That will probably go to a main contractor who will employ out of town sub-contractors," he said.

The main contractor is expected to be announced within weeks and developers have stated if they get the job, they intend to use Rotorua sub-contractors wherever possible.

Jennian Homes Rotorua sales manager Anthony Timmer said the demand for new homes was steady and hadn't changed too much in the three years he had been with the company.

"We consistently have about six houses on the go. Inquiries are coming in, we have no complaints."

He said the main threat to his business at the moment was the prospect of Rotorua running out of desirable sections for people wanting to build.

The latest Reinz figures showed there were six sections sold in Rotorua in January, compared with just 50 for the whole of 2011.

While that was deemed a positive sign the market was improving, Mr Timmer said increasing section sales also had a downside for new build specialists. "After those sections are all gone, where do we go?"

Mr Timmer said his business employed about half local sub-contractors and half Tauranga contractors on Rotorua projects.

Those from Tauranga were often more competitive cost-wise and in some cases had specific skills the franchise business needed.

"We have specific things [Jennian] do. For certain jobs there's only a handful of guys we use and some are from Tauranga."

Bay Design & Builders owner Glen Orbell said he was quite busy, working as a sub-contractor on a new house build but considered himself one of the lucky ones.

"What I hear from others is that they are not that busy. There are a lot of guys that don't have enough [work]."

Mr Orbell was aware of builders from Tauranga doing Rotorua jobs. Although he hadn't been affected personally, it must be having some impact, he said.

Paul Marshall of Generation Homes Rotorua said things were slow until about November but they now had five new houses on the go and had received a number of inquiries. He said he hoped that meant things were picking up in what was still an inconsistent industry.

"It lifts and then it quietens off again. We don't get a good flow."

Another Rotorua builder contacted by The Daily Post answered his mobile phone from Queenstown where he was on a job.

"There's no work in Rotorua," he said.