Damn Ebert Construction gone into receivership. They are finishing the Dunsandel PLant (by December) and about to start the Pokeno plant due for commissioning Sept 2019. This is likely to but a brake on things. Looking forward to a company announcement.
(as an aside - another major construction company in the ****. What on earth is happening to this industry. In the best of times they cant do a decent job - what are they going to be like in harder times. Does not bode well for NZ!)
My understanding mm is their is a really critical shortage of qualified staff right across all aspects of the building industry. If you can't get good staff some companies end up hiring poor quality staff and that's when the problems really start.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
My understanding mm is their is a really critical shortage of qualified staff right across all aspects of the building industry. If you can't get good staff some companies end up hiring poor quality staff and that's when the problems really start.
I dont disagree - but there is no excuse. After the CHCH earthquakes it was plane as day that we (NZ) would have to re-ignite an apprenticeship programme and put current workers on professional development to upskill them. Its been over 6 years. Apprentices and degree qualified people should be pouring out of tertiary institutes. In the absence of that - there is no shortage of offshore people looking for work. ChCh has gone flat - what has been done to soak that resource up?
Likely future production is built into current price. I cant see SML now meeting those targets.
I know I am a worry wart so if there is no announcement from SML on this issue today I will be sending them a "Please Update" tonight.
In the meantime happy to hold my gains and content with long term picture. Not panicking to sell just yet.
Another view. I couldn't agree more mm. You'd be forgiven for thinking most building companies can't think further ahead than their current or at best, next contract. The woeful lack of apprenticeships and training is coming back to haunt the industry and N.Z. Inc in a major way.
For what its worth I am not panicking about this either. Yes it will cause a delay but I am focused on the long term.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Hard to see how this wont affect the growth plans at least in the short term.
Will be a good challenge for management and something to monitor their performance with
There could be some modest delay to these two projects while another construction contractor is sorted out. I am happy to hold for long term growth.
Last edited by Beagle; 01-08-2018 at 01:52 PM.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
There could be some modest delay to these two projects while another construction contractor is sorted out. I am happy to hold for long term growth.
Actually - this is very good news. This way it is not Synlait which needs to manage the contractor change (and carry any penalty), but Tetra Pak. They are big enough to weather these minor contractor issues in some small island in the South Pacific without problems;
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
Actually - this is very good news. This way it is not Synlait which needs to manage the contractor change (and carry any penalty), but Tetra Pak. They are big enough to weather these minor contractor issues in some small island in the South Pacific without problems;
Pretty much how I see it too BP. Actually thinking about it a bit more as you quite rightly allude too, its likely there would be penalty clauses in terms of late delivery written into the contract with Tetra Pak so at least some of the pain of any delay probably rests with them.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Reply With Quote
Originally Posted by Beagle
without problems;
Bookmarks