Tradespeople face bigger competition over smaller jobs

The number of renovations jobs might be on the rise, but New Zealand’s tradespeople are still struggling with increased competition and a lack of big jobs.

A new Tradesman Job Index – published by tradespeople website builderscrack.co.nz – shows that the volume of jobs completed during January rose, but that the average size of those jobs fell for the second month in a row.

The index showed “tentative signs” of recovery in November, according to builderscrack.co.nz director Keith Roberts.

But he added that the ongoing lack of consumer confidence when it comes to home renovations and improvements have left the index at levels not seen in six months.

The lack of big jobs has also kept prices for smaller jobs competitive, putting further pressure on the industry, said Mr Roberts.

“Homeowners posting jobs over Christmas and New Years were also getting interest from three or more tradespeople within hours, suggesting there were a number of tradesmen who didn’t have much of a break”.

Mr Roberts said an increasing number of bigger jobs were cancelled during January, with many customers citing “changed circumstances” for the cancellation.

“The market remains very competitive. We have over 2,500 tradespeople on builderscrack.co.nz now, with the number joining accelerating over the last two months, which was surprising given it was a holiday period.”