A top building boss says there are two fundamental issues with the construction industry and things need to change.

Bayside Designer Homes is the latest building business to fail, leaving nine Auckland housing sites unfinished, and homeowners in the lurch.

Naylor Love Chief Executive Rick Herd says one issue is the boom and bust cycles.

He told Mike Hosking the second is the fragmentation of the industry, with a lot of small operators which don't have strong balance sheets.

Herd says as soon as the cash starts to dry up, that's when they get into trouble, so he expects we'll see a continuing collapse of smaller companies over the next few months if not years.

LISTEN ABOVE

A top building boss says there are two fundamental issues with the construction industry and things need to change.
Bayside Designer Homes is the latest building business to fail, leaving nine Auckland housing sites unfinished, and homeowners in the lurch.
Naylor Love Chief Executive Rick Herd says one issue is the boom and bust cycles.
He told Mike Hosking the second is the fragmentation of the industry, with a lot of small operators which don't have strong balance sheets.
Herd says as soon as the cash starts to dry up, that's when they get into trouble, so he expects we'll see a continuing collapse of smaller companies over the next few months if not years.
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.