Originally Posted by
Baa_Baa
You'd need to DYOR but my contacts are suggesting a topped construction market moving into decline, sales pipelines and closed deals in some big name brands has dropped off markedly in this quarter, the immediate future looks uncertain. No clues as to why, but the cyclical nature of the industry could be in play. Just sharing.
NZIER Quarterly Survey of Business Opinion fpr the September quarter had this about the buildering sector -
There was a further drop in confidence in the building sector from 18 percent to 3 percent. June quarter GDP had shown another contraction in construction, and indicators suggest further softening in construction activity is likely in the near term.
Profitability in the building sector has also deteriorated, as building sector firms are finding it more difficult to pass on rising costs.
So as you say baabaa things not that bright in the building sector.
Don't forget Metro's had an abysmal Gross Margin of 44% in second half of last year (normally 53% odd) - a sure sign that they were both discounting contracts and were 'finding it more difficult to pass on rising costs'
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