Fletcher Building says the lockdown resulted in it losing $55 million in New Zealand during April; sees residential building consents plummeting by 30% over the next year

Fletcher Building says the lockdown resulted in it losing $55 million in New Zealand during April; sees residential building consents plummeting by 30% over the next year

Fletcher Building says it's going to cut 10% of its New Zealand workforce, meaning 1000 jobs will go. This news comes as the company predicts that residential building consents will plummet by about 30% over the next year.

The company made the announcement on Wednesday to the NZX, at which time it also said it would cut 500 jobs in Australia, while it also said the lockdown in New Zealand had resulted in it losing about $55 million during April. Also, the company is predicting a 15% fall in commercial building work over the next year.

Fletcher CEO Ross Taylor said: "While we looked at all parts of our business to remove costs, regrettably we believe we will not be able to support the same number of people.

"We have to make some very difficult decisions which include looking at reducing the number of people we employ by approximately 10%.

"This will equate to around 1000 positions across New Zealand."

Taylor said that Covid-19 would likely have a significant impact on the group’s markets in both New Zealand and Australia.

“While there is a lot of uncertainty over the economic outlook, we expect Covid-19 will lead to a sharp downturn in FY21 and potentially beyond. Looking to the next financial year, we are planning for an environment that will see a shrinking economy, substantially reduced customer demand across all our businesses and sustained lower levels of productivity."

In New Zealand, residential consents at the time of the Level 4 lockdown were tracking at all-time highs of around 37,000 per annum, Taylor said.

"As we look ahead, our base case estimate for residential consents in New Zealand is that they will drop by around 30% to c25,000 in the year to June 2021.

"We expect New Zealand commercial building activity to be impacted by a reduced project pipeline in the private sector, with our base case factoring in a c15% decline in the value of commercial work put in place in FY21.

"Meanwhile we expect the New Zealand Government commitment to infrastructure spend to support our businesses exposed to that sector, however we expect work put in place to decrease by c10% in FY21 as new projects take time to ramp-up."

Taylor said that in Australia, residential approvals prior to Covid-19 had been showing signs of renewed growth from a base of around 150,000.

"Our base case is that we now expect approvals to fall by a further c15% to c129,000 in FY21. In commercial and infrastructure, we expect a similar dynamic to that of New Zealand with the value of work done declining by similar percentages in both sectors.

“These are our base case estimates for FY21, though we acknowledge that there is a lot of uncertainty over the outlook and that actual activity levels may be materially different. We will be looking hard at the trends in activity over the next few months and will be ready to respond if needed.”

Back on the job losses, Taylor said that in Australia Fletcher was are undertaking a comprehensive review of our operations and expect this would result in a workforce reduction in the order of 500.

"I acknowledge this news will be hard to hear and that this is an unsettling time for all involved. Moving ahead as proposed would mean losing talented and hard-working people from Fletcher Building. Any of our people affected will have made a difference to our company, their teammates and our customers; these decisions are not a reflection of their value or contribution."

Consultation starts in NZ this week

Taylor said the company was beginning consultation "with some of our people and unions this week".

"In New Zealand, we will honour our obligations under the Government Wage Subsidy scheme by retaining our people through the 12-week subsidy period ending 26 June 2020."

(Fletcher received $68 million from the Government through the scheme.)

"We are committed to supporting our people as they leave us and will endeavour to do what we can to help them secure their next opportunity.

"This will include every permanent employee leaving Fletcher Building being paid their redundancy entitlement under the terms of their employment or a payment equivalent to 4 weeks’ base salary, whichever is higher, to recognise and support our people given the exceptional circumstances. We will also be providing a comprehensive range of outplacement and other support services."

Taylor said other cost cutting measures had included looking hard at the company's "operational footprint", exiting some offices to make better use of the space it had in places like the group’s Penrose (Auckland) headquarters, making improvements to the efficiency of its supply chains so that it needed fewer warehouses and depots, and ceasing some unprofitable product lines.

"We will also reduce spend in discretionary areas such as external fees, marketing and travel and we will not be paying any short-term incentives across our businesses for FY20. Reductions of 30% to Board and CEO pay will remain in place through to the end of September 2020."

Costs and debt position

Taylor said the redundancy and restructuring activities would result in some one-off costs yet to be determined but which would be disclosed as part of the group’s full-year results announcement in August.

The company had continued to focus on preserving cash and liquidity through not only the lockdown period but also looking ahead, Taylor said.

"In addition to the already cancelled interim dividend payment and suspension of the on-market share buyback programme, the group has revised its capital expenditure outlook.

"In the fourth quarter of FY20, capex has been reduced by c$60 million, which means total expenditure for FY20 is now expected to be $240 million compared to a pre-COVID-19 expectation of c$300 million.

"In FY21 the Group expects its core capex envelope to be in a range of $125 million to $150 million, focused on only the most important investments in safety, maintenance and key strategic initiatives. In addition, $50 million will be invested in the new Winstone Wallboards plant in Tauranga in FY21.

"As at 30 April the Group’s (unaudited) net debt was c$650 million and the Group’s leverage ratio (net debt/EBITDA) was 0.8 times, compared to a target range of 1.0-2.0 times.( ) At 30 April the Group had (unaudited) cash on hand of $970 million and undrawn credit lines of $525 million, providing total liquidity of c$1.5 billion. The average maturity of the Group’s debt facilities is currently 3.7 years."

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119 Comments

11
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Yea we're not building our way out of this any time soon.

10
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dont think we were ever depending on fletchers to build us out of anything after the earhquake and convention centre botchups.

Indeed. There is no housing shortage after all and as the ad revenues at interest have plummeted (we should all support them) particularly now that the comments section is riddled with ‘pesky’ over educated commentators who understand And are quite happy to share their knowledge that the rockstar Economy was just a bank driven credit bubble that was ignored by a Certain banker/politician/banker. Reminds me of that Celtic Tiger of the 2000’s!

nope you are right, how many wilding pines and wallabies are north of the Bombay hills to help with the recovery for you guys up there?

plenty of invasive pests but no wallabies yet in whangarei.

21
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Wrong....

This measure is the result of a bloated poorly run company who rested on their monopoly position, and now the banks are circling. Placemakers could have been a Mega 10 or Bunnings, but have lost market share because the board and executive of the time sat on their ass and did nothing. This is but one example.

They have accumulated debt of $2.1 billion in their 2019 financial report, and its more now. Market capitalisation is $2.9 million on current share prices. Work it out for yourself. No pity here, especially to a predominantly overseas owned business that have been extracting short term monopoly profits at what is obviously now been at a long term expense.

Hopefully the government dont ignore this opportunity to pick it up at fire sale prices when its in the hands of the liquidators; which should be shortly. NZ inc needs some more competition in building supply and infrastructure delivery, to keep the prices of few left doing this honest. NZ inc have been gouged on these prices for too long.

I think it (this tailspin) began when the board decided to buy Formica and the Crane Distribution businesses back around 2014/15, both were bad acqusitions and definitely distracted the leadership which I think ended up snowballing into the farcilcal difficulties like the Convention Centre...too many balls in the air at once. I could see the Govt picking up the infrastructure assets if fletcher goes bust and forming the core of a new Ministry Of Works...

According to today's announcement, Fletcher's have net debt of $650 million, and a net debt/editda ratio of 0.8 (target is 1-2). They have $970 million cash on hand. Your numbers are a little out of date and I doubt the banks are circling - this is just the company getting ready for the recession.

mfd.......I agree with you. Good Samaritan is talking garbage re Fletcher's figures and given himself 18 likes.

Garbage is a strong word (perhaps explained if from a disgruntled shareholder, board member or executive - where they can only blame themselves)...

My figures were only going off what is publically available, and they could be out of date.

I do however stand by my comments this business is on life support, and it would be go for all to see either the break up of this monopoly supplier or it being purchased by the government, when in liquidation.

The housing shortage myth is disappearing in front of our eyes. How many businesses and households have fallen for the supply and demand crap without understanding that it was all just a massive credit ponzi?

That's what credit Ponzi's do, cause demand to get out of kilter with supply. Not always on volume, but price as well.

We have a shortage of affordable housing.

Even the Govt. putting the cash into these 8,000 new to be built houses works out at about $650,000 per house and land (read apartment/townhouse).

13
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Some more to add to the queue cindy/grant...meanwhile when do you reckon you can start rolling out the big incentives to save jobs and create some? Did I not say the construction sector was also looking at cutting 10% and then another 5%. So we have Tourism, hospitality, Aviation, Manufacturing and now the construction sector shedding jobs..and you say the unemployment rate will only hit 10%...oops sorry got to go and try to catch the pig flying past my window..

18
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NZ is not immune to these boom and bust cycles... have a look at what is happening in Aussie and the rest of the world why don't you. As for Fletchers, they were already in dire straits before the pandemic arrived so this is not at all surprising. COVID was just the catalyst (or pin) to pop this corporate and private debt mountain.

13
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Fact is, this mountain of debt was all aid and abated by overseas banksters; including plants like Jonkey, Simon Power, Shipley, Brash, etc that worked and continue to work for them.

10
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This is not a 'cycle', it's an economic shutdown the like of which has never happened before.

It’s the end of the business cycle and one could also argue the end of the long term debt cycle.

How is a one off event a cycle?

Because as I have stated COVID is only the catalyst for the economic calamity we find ourselves in; this economic meltdown was inevitable because the debt burden was never sustainable. If the globe was not up to its eyeballs in debt then the repercussions would not nearly be so dire.

Well it's possible, but it's a speculation.

But the direct actual cause is a one off, unplanned economic shutdown.

Boring. I prefer the flaky conflation theories.

Ostrich, meet sand....

That 'flaky conflation theory' comes from the founder of the biggest hedge fund in the world, but of course you would know more about markets due to your qualifications as some guy who bought a house before 2000.

In the markets for seven years. Didn’t have the success of Sir John Key or evidently BW, but successful enough to be sitting on my pot of Gold as an interested spectator. The difference the years have made is that I’m less sure of anything now than I ever was. That’s why I’ll be a survivor. It’s not a sprint.

Is this your morning pep talk?

The Govt. has said they had a pandemic plan. So this must be it.

If not I hate to see if they really planned for something.

and that, Ralph, is what many people are failing to comprehend. It has affected the entire world!

Be that as it may, its cause is a one-off event and not any kind of 'business cycle', as was suggested.

15-20% at least. I'm revising my views on house prices too. 20% plus likely.

12
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I wonder if house price drops and employment will be close in percentage terms as well. I'm picking 20% unemployment and 20% house price drop too. I am pessimistic by nature and hoping to be pleasantly surprised though.

Agree with your view I have seen 20 percent quoted many times now across many businesses.

20% unemployment will mean a 40% House price drop. Whatever your unemployment rate, double that for house price drop. We are in the post lockdown ‘cash grab’ have you seen the store discounts already on offer? It’s Darwinian.

Anecdote: I convinced a family member to list a Queenstown house. Very aggressively priced and zero real interest.

Hi Fritz

As you know most of the waste in the system is land price.

How much do you think surplus to requirements empty sections will go for?

most will be on work permits so no they wont be added to the unemployment.
BUT as a country as and as a company fletcher should help them go home

Love it :-)

13
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Remind me how much the CEO of Fletchers is getting paid?

$5.3m last year

Be more respectful. The Exec team voluntarily took a 15% pay cut for the 12 week period following lockdown.
Less voluntarily, they then revised that to 30% for the 12 weeks.

21
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The CEO could take a 75% permanent pay cut and it might be getting closer to reasonable.

15
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Ha! Permanent pay cuts for upper management?!
You certainly are funny, IO.

It's much better to get your cost savings by gutting the place of the staff who do 80% of the productive activity.
No one seems to care about Fletchers' constant over-runs, so why keep those people.

Well the current form of capitalism and business structure/remuneration might be more in the spotlight now and in need of reform. In my view, its one step towards fixing the inequality we see as the ratio of executive pay to working staff is now completely bonkers (again in my view).

Hell yes and politicians take the first step. Start at the top

Yes well that's the problem Houseworks. The CEO of Fletchers was getting paid over 10x more than the top (Prime Minister - think shes around $400K? and CEO Fletchers $5m +). So how does starting at the top help when its those who aren't at 'the top' who are getting paid the ridiculous wages?

One of the reasons I invest in property is that I sleep better knowing I am not paying the inflated salaries of over-promoted, incapable idiots. I'll leave that to you.

12
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But you are - the bank CEOs.

I'll leave that to you.

I have way too little debt as it happens, I actually need to buy more. I'll leave you to pay the CEO salaries that you rightly highlight as being unjustifiable.

Hey te kooti although I sort of agreed with IOU the pay of CEOs who are chosen by the board is a whole other area to politicians elected by the people. There is no way that the PM of NZ should be paid 500K and have the unenviable title of seventh highest of all countries. They recently voted down the bill that could have changed that and that vote by the COL goes to the heart of their self interest. Very very shameful

I'm not sure of your point HW, I don't have a strong view on Ardern's salary either higher or lower as it's largely irrelevant. She will pick up very lucrative NGO/Corporate roles in the future. My sense is she will be cherry-picked for UN/World Bank/IMF/Facebook/Google etc and has a very bright future.

Better yet, pay 100% indexed to long term performance.

12
up

Thats such bad corporate leadership, he should be ashamed of himself. 4 weeks pay and you're out the door, hows that for future proofing a business? If thats the sort of thinking our business leaders are already resorting too then I hope the affected staff top up their severences by cleaning out the equipment pool on their way out the door or leaving that half million dollar earthmover running after you've drained the oil sump...

10
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What an absolutely mediocre company, they have incompetence in their dna. These guys are the very reason I avoid investing (directly) in bloated public companies.

I've never been particulalrly impressed with any of the Fletcher Management that I've encountered in business dealings. One word....lazy. No Fletcher holdongs in my portfolios either.

Horrible company.

Maybe they're just trying to encourage the government to set up that Ministry of Works again?

The staff at fletcher steel have been very good and professional to deal with the many times I have needed steel quantities

The steel division seem to be in quite a competitive environment judging from how Fletcher Steel and Steel and Tube have performed over the last few years. Skinny margins.

I think S&T got caught out with too much importing steel from dubious mills in China ( and good job too!) as opposed to Fletcher Steel who I believe have far stronger optics on their supply chain. BTW my criticism of Fletchers is levelled at the corporate leadership strata I have had dealings with, absolute lard asses - sack the lot and give the spare cash to the people who are being tartgeted for redundancy, they are the people paying the price for piss poor leadership.

Ditto, I'm sure there are quality people in the business

We need more “INCLUSIVE ECONOMY” in ways of really helping people in need during this tough times - from their hearts, not just saying “ A century’s opportunity “ (to lure more investors to buy more houses) by our bank’s Chiefs. A memo from world’s largest bank CEO’s WAKE UP CALL.

https://www.google.co.nz/amp/s/www.cnbc.com/amp/2020/05/19/jamie-dimon-s...

9000 work from home, 1000 home from work.

"The Warehouse says it is having to make "tough decisions" about the future of some of its stores"

I think it will go the opposite way than people predict.

It will be some of the bigger stores to shut. The smaller ones, which in some towns are borderline institutionalized will survive.

When you look at where things are currently at in the economy, the over the top commercial rents and more people shopping online Id be backing the survival of Feilding Warehouse before some Auckland mega centre.

Might depend mostly on the pressure that can be brought on their (commercial) landlords?

Malls have certainly lost their lustre a wee bit now.

Bring back main street, it is such a better way of shopping. Back in the day my parents had shops in dominion rd in auckland. They were vibrant and community based areas.

The comforting thing for CEO's is that making 'tough decisions' is usually compensated for by way of an extra large bonus the following year to appease the pain.

and also don’t forget that those CEO’s CFO’s CIO’s etc have also pre-negotiated their leaving/exit package. So if/when they decide to leave the job They will leave with a massive payout. Unless they have been stupid e.g Brian Hartzer at Westpac. Think he forfeited $20 million in Pay and bonuses. Will be interesting to see the fine imposed on Westpac when it is announced!

Becomes a self fulfilling prophecy in the end.

The government said business confidence doesn't matter.

The gap between the rich and the poor, always increasing, like shares, exec pay and house prices.
I can hear that old 80's song so clearly "...there is no depression in NZ ...".

There is no depression in New Zealand. There are no sheep on our farms.
That's because we replaced them with Sheeple in our rentals. Same old money Queen St farmers.
Just running different stock units now. But at least you get a subsidy for sheeple.

Many cimpanies were already struggling and got an opportunity in Corina Virus. Some who were doing fine are using this crisis as an opportunity to trim.

Great to see such news immediately rewarded with an increase in share price. Top winning attitude there.

FBU fell 2.4% on open mate, what were you looking at?

It was up, albeit .03%, seconds b4 I made the post. Honest.

Possibly the NZX? which opened up off the back of this and America and Europes overnight falls.

Stock market is not the economy, is usually driven by the oscillation between greed and fear, good news and bad news. No need to look for NZ50 or Dow Jones every day, rather just keep an eye on disappearing jobs.

Unfortunately Fletchers has been in a tailspin for years,Supposedly one of our most successful companies has made poor decisions and just burnt up shareholder value,all the while having a virtual monoply on so many sectors of the building industry.
This is another example of why 'having real world business experience' isn't necessarily a requirement for political office.
For sure take advice from the business sector,but weigh it up against all other stakeholder interests.
Fonterra's Theo Speirings and Fletchers Ross Taylor and others,show their skills don't necessarly match their salaries or the perception that they are especially gifted.

John Key forewarned this would happen...or was that subtle advice from him to business.
quote;
"Everyone is going to kick out 20 per cent of their people . . . even if the company is doing well . . . their worst performers. Never waste a crisis.
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=123...

10
up

Ardern told everyone to “Stay Home Save Lives” !
What a load of BS!
What she did by having business closed for far longer than what needed to happen is what is now causing people to lose their jobs.
It is going to be very hard for these unemployed to get another one, as most wont be employing.
For all of you Ardern can’t do anything wrong supporters, you are going to be changing your minds.
Unfortunately we have not got a government that is in control of anything!

10
up

Hmmmm,history shows that Fletchers couldn't cope with a head cold,let alone a global pandemic...they are just using this as an opportunity to hide their ineptitude.

yes and those on wage subsidy are in a complete false sense of security, thinking they be able go back to work when it stops. Some will, but a large portion won't, by time they realise they lost their job and no potential of picking another one up for a while, and very little support from WINZ, the election would of been and gone. Then the penny will drop....

All well and good,but exactly what are National proposing?
Excerpts from Paul Goldsmith alternate budget;
"Big spending in the Budget should be focused on saving jobs – such as cash to small businesses most effected – and critical expenses related to health and education."
"We won't avoid a $40 billion or $50b dollar hole; but we must not turn it into an $80b, $90b or $100b disaster. All the debt will need to be repaid."
"Second, save jobs by getting cash to small businesses most in need. Our GST refund proposal to businesses that had lost more than 50 per cent of revenue for two months would help and help strong businesses to drive growth. Our Business Investment Accelerator proposals would incentivise new investment."
"Fourth, unlocking private sector investment is the key to growth and innovation.
We won't rely on Wellington committees to reinvent the economy. We'll trust Kiwis to work out how to get back on their feet. We'll keep taxes low, we won't regulate firms to death or keep changing the rules, and we'll back them to succeed.
Fifth, we'll use the Government's balance sheet to invest in quality infrastructure – like National did with the Ultra-Fast Broadband – in upgrading our skills, turbo-charging the innovation sector and in improving the quality of public services, such as health.
We need a Budget that backs New Zealanders."
A lot of words that say nothing,throw a bit of cash at small business,don't borrow quite as much,use the Governments balance sheet (more borrowing?)
So no mention of how they would suddenly have big business not being opportunistic and downsizing,so the CEO can be seen to be acting decisively so next year he can make up for his loss of earnings by giving himself a large 'catch up bonus'
I seriously wish someone did have a magic wand that could deal with an issue that the whole world is dealing with,but I certainly haven't seen anything transformational from the Nats or any party.
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=123...

What's with this GST rebate. It makes no logical sense to me with businesses being GST neutral.

Yeh I don't get that. The retailer or service provider is just collecting Tax on behalf of the government to be sent on to IRD. Are they suggesting that retailers for example leave their prices as is and just pocket an extra 15% for a few months?

Not to mention the fact that many tradies & small businesses still offer a 'no gst' cash discount...hard to get a rebate on zero...

Don't think you're going to find much sympathy for punishing that...

Re GST, I guess its from a perspective that the ultimate consumer pays the GST that on a net basis will be provided to business...it's like giving the business you purchase from a 'tip'.

Can you remind me what the unemployment rate in the US is TM2 or does that not fit with your anti-Jacinda false narrative?

America was always going to be a cot case... no leadership, too partisan.

Cindy did a good job on communicating the levels and getting the message across...the major f-up has been lack of balance in their approach to affects from actions/inactions in terms of overall impact.

Same with all the other tired, incomparable, erroneous example held out as the catastrophic result if we didn't follow Cindy & Bloomers lead...

So from that argument you would have preferred the USA approach where they have mass fatalities and an economy that is screwed? And before you do a Simon and state Aussie is our guiding light, they still don’t have a handle on their case numbers and their economy is in dire straits. The reality is that no one can make an educated assessment of how well/poorly this crisis was handled for at least another 12-18months.

Yes, we can't know if we did well before the full costs are in and the virus is actually over.

But we do know some things; we have increased public debt by $100B+, both airlines operating in NZ are bankrupt, a $42B tourism industry is now a shadow of itself, an average of 1,000 people a day have signed up for benefits over the virus period, the $2B+ education industry is on the ropes and the virus remains in the world.

We might still face mass fatalities (virus is not over).

The fatalities will come alright...but not directly from Covid infection but from economic depression... Suicides, poor-health leading to earlier death, delayed diagnosis and non-critical, turning to critical, operations etc..

You seem to be implying that these issues are somehow unique to NZ? Name me one country that is not currently succumbing to the issues you have just raised?

Indeed. The false dichotomy is constantly pointed out but no one seems ready to break down their analysis when it is.

I listed some known facts about the NZ situation. There are a huge range of effect in other countries, as we all know, but none of those situation changes what is happening here very much.

I think it is reasonable to suggest, given the range and scale of different responses, that costs will vary from country to country.

“ None of those situations change what is happening here very much?” Do you actually read what you write? Last time I checked NZ’s economy was extremely dependent on exporting our products to the rest of the world.

Covid has smashed every country. Ours is a slow rolling train crash because our swamp is so large and well paid that it cushions the economy until the productive sector can't carry it any more. I think this government has done a good job - no one has got it perfectly right. But now is the time to cut through the bloated local government structures that hold us back. Central government actually performs pretty well.

Spoke like a true agent The Boy. I believe she should have shut us down earlier but overall she has taken the only approach she could have taken. The quicker we deal with it the quicker we can get the whole economy going again. Countries like the States and the UK have not taken the same approach as us and their economies will suffer for longer than ours and therefore take longer than us to recover. We were looking at years of recovery either way but it will be shorter because of our hard approach. What is incredible is that you can fly to the UK if you can get a seat and they are not quarantining people. You can a horse to water but you cannot make it drink it.

I cannot shout this loud enough but still the cloth eared refuse to hear. THIS IS WORLDWIDE!! What is happening was going to happen all the time, as we rely so heavily on foreign money, in one form or another!!

But, but she is the most popular leader by a country mile.

She must be thinking the more people that lose their jobs the more popular I will become.

Working so far.

TM2...I thought you said they were too controlling..

I remember playing Saturday cricket with one of the Fletcher boys when I was a teenager. His Dad was on his car phone/brick the whole time watching and working from his car.. every Saturday.. A different kind of social distancing!

Another day, another 1,000 people on a benefit.

Or as Simon says...another day,another 1,000 people on the 'Paula'

Another Ralph post, another regurgitated National talking point.

And yet what actually matters is if it is true or not.

Do you have any evidence the statement is not true. Any at all?

I remember doing a course with a bunch of Fletcher staff 10+ years ago, they had all been flown up from Chch to Auck on full pay, food, travel and accommodation all paid for, as well as the course fees. There were 4 x 1 week blocks over the course of six months if I recall. I reckon it was costing Fletcher $5k/person/week, and there were 5 of them. How they price that into a job I'll never know.

I used to work for a fletchers subsidy company 30 years ago when the fletcher family still ran the company, much much different from now.
you had to go to another fletcher company first for a price but if you could get the goods or service from another company for a better price and the fletcher company could not match within 5% of it away you could go.
we could have grown a lot lot bigger if we had taken on all the fletcher work we turned down, but for our CEO it was about a healthy profit margin on turnover that he got measured on so it was a lot better to be smaller and have good profits for head office, a lot different culture than they have now

Very few companies ever went out of business by maintaining healthy margins over the long term. It seems odd that modern day consultants and strategists favour other targets like revenue, users, volume with little concern for the bottom line. If one more person tells me Uber is a successful company because it has so many users and 'shaken up the industry' I'll be tempted to cut my ears off.

Uber lost $2.94 billion on revenues of $3.5 billion in Q1 2020:
https://wolfstreet.com/2020/05/07/uber-lost-3-billion-on-3-5-billion-in-...
I wonder how much they're going to lose in Q2?

I hear ya... the true nature of many large corporates is their inflexibility and inefficiency from hierarchical structure.
Management have a knack of piling more policy, reports and processes on-top of more to support the illusion they add value.

but but but Fletchers are ignoring the nothing to see here RE shrills....

Hey man, less building = higher prices! Wahoo! Get in now before prices rise!

I wonder what grossly inflated amount they will get for Ihumatao now as a thinly disguised bailout.

Nah the government won't touch that land. Cause if they do, they'll have to kick off the Maori claimants and they'll never do that.

Despite the doom and gloom, other building companies are absolutely full steam ahead still and still have far more work than they can handle.
I am in the process of building a new house at the moment and it is getting frustrating really, building companies still have so much work on and won’t have space to begin our house for a while yet.

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