Call for urgent business training to help NZ builders’ welfare

Marti Amos, a Stewart Island-born business strategist and former Otago University lecturer, is calling for significant changes in the training and support of New Zealand's construction workforce, with particular focus on financial literacy, business systems, and technology adoption.

Amos, who is the founder of The Professional Builder, says his experience mentoring more than 2,500 building companies globally has shown that gaps in financial education, systems-based thinking, and modern training are contributing to a mental health crisis in the construction trade. He notes that current challenges are not just operational but are having tangible impacts on workers' well-being.

Recent research into the New Zealand construction sector indicates that the industry faces serious mental health challenges, with suicide rates reportedly 25% higher than in other sectors. Elevated risk has been observed among Māori, Pasifika, female, migrant workers, apprentices, and labourers. Contributing factors are listed as financial instability, low pay, and a lack of tailored mental health support.

Amos argues that these issues are compounded by what he describes as the industry's "boom-and-bust cycle," the wider cost-of-living crisis, and a training model he believes overemphasises vocational trade skills at the expense of business acumen.

"Kiwi tradespeople are trained to excel on-site, they are underprepared to manage the multimillion-dollar business aspects of their work, with dire consequences for their mental wellbeing," Amos said. "Our construction workers account for about 7% of working-age male suicides – with nearly one worker losing his life to suicide each week and the avoidable burden and impact of suicide in the NZ construction industry has been estimated at NZD $1.1 billion per annum."

He also points to data showing that the construction sector's annual growth rate fell to just 0.6% in the second quarter of 2024, its lowest in a decade. Amos suggests this stagnation is likely to escalate mental health concerns within the trade.

"The New Zealand building industry is seeing its lowest levels of annual growth over a decade with a rate of just 0.6% in the second quarter of 2024 – a factor that is likely to exacerbate mental health concerns for many in the trade," Amos said.

He believes that while New Zealand and Australian builders are capable of delivering high-quality construction work and managing teams, they often lack training in business management, which contrasts with the US model where general contractors delegate and spread operational burdens more widely.

"Kiwi builders have been taught how to create outstanding projects, they're brilliant with the tools – but no one has taught them how to build a great business. In New Zealand and Australia, builders often employ their own teams and handle every aspect of a project themselves. This contrasts sharply with the U.S. model, where general contractors delegate tasks – reducing the burden on the individual," Amos said.

Amos's concerns extend to the impact of poor financial understanding on business owners' personal lives, as many trade professionals struggle with cashflow issues and extended hours.

"When you're constantly worrying about how to pay your subcontractors or secure payroll for the next week, it isn't just your business that suffers – it's your whole life," he said.

Amos reports a growing international demand for targeted support, reflected in the growth of The Professional Builder, which began with three staff in 2004 and now has 56 employees. The company plans to reach 100 employees in 18 months, with projected revenue of NZD $30 million, and continues its expansion in the US, Canada, the UK, Australia, and New Zealand. New US partnerships are planned, mirroring relationships in New Zealand with Carters, ITM, and Mitre 10.

To directly address these challenges, Amos has authored "The Profitable Builders Playbook," a new book aimed at providing construction professionals with the business training required to better navigate the complexities of running a construction company.

"At the moment they're stuck on the builder's 'hamster wheel', caught in the weeds of daily operations without the skills to manage the large sums of money and complex challenges that come with running a construction company," Amos said. "What we need is to implement business training into apprenticeship programmes to ensure that our future generations of builders are as adept at managing large-scale financial responsibilities as they are at delivering quality craftsmanship. With a vital sector at risk and the mental health of thousands hanging in the balance, my message is clear: reform is essential."

"As New Zealand's construction industry stands at a crossroads, stakeholders must adopt a more balanced training model – one that nurtures not only technical excellence but also financial literacy and sustainable business practices. This call for change is more than an economic imperative; it is a matter of safeguarding the well-being of those who build our nation."