Rising Construction Costs

Concrete

New Zealand’s construction industry has been hit hard by rising costs across the board, and concrete is no exception. According to the CoreLogic Cordell Construction Cost Index (CCCI), the price to build a standard residential home increased by 10.4% in 2022, a record-high annual growth rate​.

While factors such as labour shortages and delays in building approvals have contributed to these increases, concrete shortages and escalating material costs are key drivers.

Additionally, the Producer Price Index for concrete-related products has consistently shown upward trends. These price hikes have put immense pressure on the construction industry, particularly for residential and commercial projects, where concrete is used heavily in foundations, walls, and other essential building structures.

The figure below from Stats NZ shows the change in price in percentage growth over the past few years. And whilst the percentage growth rate has slowed on what iit was, the price growth has still been cumulative, with any increase being costly.  

So Why Are Concrete Prices Continuing To Rise?

Several factors are continuing to push concrete prices upwards:

• Global Supply Chain Issues: The ongoing disruptions in global supply chains have led to shortages in essential raw materials, like cement, which is a key component of concrete. These disruptions have been exacerbated by the pandemic, shipping delays, and geopolitical tensions, all contributing to higher costs for concrete production. Whilst some of these issues are starting to ease, to some extent they are still a very real problem.

• Increased Demand: As New Zealand comes off the back of a housing boom and the construction of infrastructure projects grows, the demand for concrete has surged. In particular, urban expansion and large-scale commercial developments have created an even greater demand, leading to supply shortages and price increases.

• Inflation and Rising Energy Costs: Concrete production is energy-intensive, requiring high levels of heat for cement production and transport. With energy costs soaring, the price of producing concrete has increased substantially, and these costs are being passed on to builders and consumers.

Increasing Concrete Prices ≠ Increased Foundation Cost

A Cost Effective Solution

In light of these rising costs, builders are seeking alternative methods to reduce reliance on concrete while maintaining quality and durability in their foundations. This is where the QPOD Continuous System comes into play.

How the QPOD Continuous System Cuts Concrete Costs

The QPOD Continuous System stands out for its ability to significantly reduce concrete use. Here’s how:

• Optimised Design: By joining open-sided pods to form a “miniature raft,” the system minimizes concrete usage, saving thousands on an average foundation.
• Less Steel Required: Its efficient structure means less steel reinforcement is needed, reducing costs without sacrificing strength.

Helpful Links

Want to see how much you could be saving on concrete? Click the link below to calculate your potential savings instantly!

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