Amidst challenging market conditions, big players in the civil construction and transport industries are taking on work that previously would’ve been subcontracted. Sub-contractors are entering price-wars to win the remaining business, which compounded by the cost of living, lumps great pressure on owner-operators. Despite the flexibility and support of financiers including AFL the big question remains… when will this storm pass?
Some optimism can be found within the NZTA Road Transport Budget (RTB) for 2024. A mammoth $20B has been budgeted in the National Land Transport Fund (NLTF) over the next 3 years. This includes $7B over the next 12 months (up from $5.4B for 2023). Impending NLTF expenditure on SH1. Specifically, in Auckland, further announcements on the Mill Road project are expected later this year.
It is hoped that the expected continuing OCR reductions will increase private sector investment that complements momentum generated by the RTB.
Difference Maker Moment
A transport operator with a fleet of new vehicles funded by the bank and factory finance companies had the opportunity to purchase two used trailers suitable for refurbishment at a cost substantially below new.
The bank would not fund the purchases as the trailers were outside its age criteria. Auckland Finance recognized the value of refurbishment and funded the purchase & repair work.
- Fast Turnaround, Finding Solutions
- Low deposit
- Working Capital Retained