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Thorne Group


Navigating the complicated web of price increases and supply shortages

“Increasing supply pressures reported for home building projects”

“Concerns grow over impact of timber shortage on New Zealand's house building industry”

“Building costs set to rise as labour shortages, supply constraints bite”

These are just a few examples of headlines surrounding the building industry in recent months. But what does it all really mean? Whilst we can’t comment on behalf of other builders, we thought we would share a little of the impact that potential supply issues and price increases are having on our business, and how we are responding.

Long lead times and advance ordering

1. Our team are now needing to place orders for many build items, fixtures and fittings well in advance of what we would previously have needed to, in some cases many months in advance. From our clients’ perspective, this means finalising their selections a lot earlier in the process to ensure delivery deadlines can be met.

Supply shortages and substitute products

2. We are fortunate enough to have built amazing relationships with like-minded suppliers over the years. Our network of suppliers are doing their utmost for us to ensure delays are minimised. However, in the odd case where it has become apparent that an item is not going to be available in time to meet our schedule, our suppliers have been able to offer substitute items of a similar (or sometimes better) standard. To date we have had no delays in handover of our homes … just some very frazzled Project Managers who make it all look seamless!

Quoting and Pricing Proposals

3. Due to the combination of supply shortages and overseas freight issues, we are experiencing a number of product price increases across the many hundreds of items that go into a home. As a service and quality focussed, family-owned business, we want to ensure our clients are not exposed to price increases during the build. To help avoid this we are only able to hold a Pricing Proposal open for a period of 20 working days.

The bottom line is that, whilst there are likely more challenges ahead, you can be assured we are doing our utmost behind the scenes to continue to bring every project in on time and on budget!


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