Recent media reports have indicated there’s a crisis going on in the construction industry, especially the home building subsection.
Major issues include worker shortages, though much of that can be traced back to the industry’s historical lack of training the younger generation of tradies who are the lifeblood of the industry. COVID-19 related work absences have added to the pain being felt across every industry.
Arguably the largest issue facing the industry is the supply and sharply rising cost of raw materials. This issue has been around for well over a year but the recent collapse of construction major, Probuild, and smaller firms appear to indicate the situation is worsening.
Early research pays dividend
In early 2021 while I was researching which home builder to choose, the financial viability and access to raw materials were questions I needed answered before I’d make a final decision.
During the course of my investigation, I discovered that Henley is owned by a 300-year-old Japanese company – Sumitomo Forestry Co. The parent company builds circa 20,000 homes a year which would make them one of the worlds larger home builders.
Because Henley’s parent company is a forestry company. This gives Henley easy access to the most important of construction materials at a time much of the industry is struggling for supply.
With the apparent rising costs biting the industry, Henley appears to be uniquely positioned to deal with raw material access and cost.
Favorable outcome
It was only 2 weeks ago that I received my final contract from Henley and even though the contract was a few weeks later than promised, I was pleasantly surprised that there was no blow out in costs from the tender.
With the contract now signed it shouldn’t be long before we enter the construction phase.