Except for glass.. metro glass sell $250m of the stuff and only make a few bucks out of it. Consumers getting a great deal on glass!
I bet not even the savvy German consumers would be getting better deals on glass back in the fatherland
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BP, not really. We have Master builders guarantee so really all homes should be to a standard. The fact there are some builders who won't sign in for it shows a weakness. I have just seen a home friends were getting reno'd and builder totally FUBAR'd it. They have to get a new builder to fix it. No they weren't part of the MB association so they are likely up for costs pending a court case.
Also we are only a nation of 5 million. So we are very small and isolated and we pay international prices for commodities.
Rawz, In Europe the PVC Window is huge. In NZ its just started to gain traction. Big problem not many colours available and NZers love there colours. Sizing can also be a problem and lead times of 6 months.
Also the Glass association here has recently told industry that we should be triple glazing here. Selling point Warm housing. This will add a huge cost to houses as it will require new Aluminium to be designed to compliment this.
Also Metros biggest problem is Management are arrogant because of there so called dominance. They failed to execute in Aust and lost major client so now have a book of excuses to tell shareholders.
To be honest ... while I knew enough about price and quality of timber and whatever you need to connect timber with each other to be able to compare ... I never had a lot to do with glass - i.e. I don't know, you may or may not be correct re glass prices in NZ.
What I can give you however is the fact that a complete tripple glass window (i.e. glass, frame, hinges, lock) in
Germany is cheaper that a double glassed window (comparable size) here in NZ.
I suspect that the low earnings of MPG have more to do with the Kiwis love to produce every window of every house (o.k. - I am exaggerating a bit, but not much) in a different size and building them form the scratch instead of using standardized prefabricated windows.
While MPG tried to optimise their factories to produce uniquely sized glass sheets .... the result for the customer will still be more expensive than buying complete standardised windows in some other part of the world.
But anyway this is the FBU thread ...
Everything is more expensive in NZ - size of the market (which means short runs & less economies of scale) and distance from supply (and demand) markets.
Not only do MPG seem to build every window to a different size, they also employ a large number of people that don't seem to be able to use a tape measure which results in an awful lot of wastage and re-work (at least that is my recent experience building a house)
Share price been drifting down everyday lately and FBU making the most of SP drop buying another 70k shares on NZX and 145k ASX shares yesterday. https://announcements.nzx.com/detail/383631
SP down again today, are we expecting bad news?
Disc: FBU and I are both buying at these levels
Fbu should do well next five years.
This report says 265,000 new dwellings next 5 years ….construction sector value to double in 5 years ….wow
https://www.rnz.co.nz/news/political...rs-mbie-report