Cashflow issues are being blamed for building businesses falling over.

The country's construction crunch may start to snowball, with more building businesses expected to fail.

Bayside Designer Homes is the latest, leaving nine Auckland housing sites unfinished.

AUT Professor of Construction Management John Tookey told Kate Hawkesby the industry uses borrowed money to do all the work.

He says as interest rates go up, it gets harder and harder and then payments get delayed, then you end up with companies struggling with cashflow.

LISTEN ABOVE

Cashflow issues are being blamed for building businesses falling over.
The country's construction crunch may start to snowball, with more building businesses expected to fail.
Bayside Designer Homes is the latest, leaving nine Auckland housing sites unfinished.
AUT Professor of Construction Management John Tookey told Kate Hawkesby the industry uses borrowed money to do all the work.
He says as interest rates go up, it gets harder and harder and then payments get delayed, then you end up with companies struggling with cashflow.
LISTEN ABOVE

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. 

Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.