Prices have recently increased, or were increasing, for products such as GIB board, Pink Batts insulation and James Hardie cladding. Photo: 123RF
- Building company Latitude Homes says it has been able to negotiate lower prices despite rising supply costs
- It says there are alternative suppliers outside the typical mainstream suppliers
- The company is urging the building industry to "say no" to price increases
Rising building costs have been in focus this week, with one major builder estimating it could potentially add up to $30,000 to the cost of a new home.
But a rival builder said it was finding the opposite, and been able to negotiate lower prices as alternative suppliers and subcontractors scramble for sales and work in a weak market.
Prices have recently increased, or were increasing, for products such as GIB board, Pink Batts insulation and James Hardie cladding.
Latitude Homes managing director Marc Hunter said despite price increases for well-known products, alternatives were available and some suppliers were willing to talk.
"Look, you just have to go on Trade Me and you can see prices [fall]. Even just for water tanks, in the last two or three months, I've seen water tank prices come down by $500 a tank.
"And you know, the main suppliers for timber, cladding and insulation - there are other alternatives than mainstream [suppliers]."
Hunter said he received regular calls from contractors and suppliers looking for work.
"You've got to take advantage of that, and we've been able to get some fantastic deals. We've just got to, as an industry, not accept the fact that some of these big corporations want us to just have price increases constantly - we've just got to say no."
Fletcher Building, owner of the firms supplying GIB and Pink Batts, noted the latter recorded its first price increase in two years. It said the rise in Pink Batts prices was due to inflation pressures and "significantly increasing electricity costs".
The weaker New Zealand dollar was another reason, according to Fletcher, as it increased the cost of importing materials needed to make products.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
