In the current economic climate, it’s not just property owners feeling the pinch—tradesmen across New Zealand are also struggling with a significant downturn in available work. The construction industry nationwide has seen a massive hit, leading to many tradesmen seeking more work opportunities. The decline of Building Consents being issued shows evidence of this.
Trades Affected:
Among those hardest hit are:
- Builders
- Painters and Plasterers
- HVAC Installers
- Plumbers and Electricians
- Sub-trades involved in new builds, particularly in major cities
Challenges for Younger and Less Experienced Tradesmen:
Many of these tradesmen are on the younger side and may have less experience, making it even more challenging. For many millennials, this could be their first experience navigating a business during a period of high inflation.
The Struggles of Trades Business Owners:
The challenges are especially tough for business owners who have spent years “on the tools,” often without dedicating much time to developing other essential skills. Key areas where skills may be lacking include:
- Social Media Marketing:Setting up and optimizing Facebook and Instagram business profiles for greater exposure.
- Paid Advertising:Running effective paid ad campaigns to attract more customers.
- Networking:Building connections within the property sector to generate word-of-mouth referrals.
- Email Marketing:Using email campaigns to secure repeat business.
- Cold Outreach:Reaching out to developers and property investors to offer services.
- Financial Management:Effective tax management and understanding business loans as a tool for temporary cash flow.
- Equity Release:Utilizing equity releases or revolving credit against property for cash injections.
The Importance of Skill Development:
While some business owners are familiar with these strategies, others—particularly those who started their businesses young and enjoyed early success—may now find themselves in a tough spot. Now is the time to focus on developing the skills that will attract more customers and stabilize the business.
These are some essential skills I’ve had to learn while operating a high-volume property business. As the economic landscape continues to shift, tradesmen in New Zealand must adapt by acquiring new skills to navigate these challenging times effectively.
If you want to learn some of these valuable skills that relate to property investing, join InvestorPro Leaders.
