Building company says material costs are out of control

PHOTO: Bright Build business director Jen Taylor speaks with The AM Show. Credits: Image – Getty Images

A Kiwi building company says the cost of materials is so out of control they are seeing a year’s worth of price increase in a single month.

It comes as huge demand worldwide has pushed the price of building materials up significantly in the past year. And it doesn’t look like it’s stopping anytime soon.

Bright Build business director Jen Taylor told The AM Show on Wednesday the COVID-19 pandemic has sent prices skyrocketing.

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“Since the first round of COVID early last year we’ve noticed that what would typically be a year’s worth of price increases may even happen in a month.

“We’ve seen an absolutely huge escalation as it’s been the combination of a perfect storm. During lockdown there were materials that weren’t being produced and China went offline and then once people got COVIDunder control…there was massive demand right across the world.”

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Taylor said timber alone has increased 20 percent in September, and it’s not the first increase this year.

“Suddenly there was great demand and as a result obviously the costs started to increase. We have seen that across almost every line that we use. Some of them are really extensive.

“We’ve even got price increases that have just come through on the 1st of September for timber products that are 20 percent. Steel has gone up over 30 percent, they really are very, very significant costs.”