How Covid-19 Has Impacted the Manufacturing Industry

Sourcing High Volume Joinery in NZ vs Importing from China.

Businesses used to reap the rewards of buying high volume joinery from overseas, the manufacturing and freight charges were cheap and shipping timeframes were adequate. Manufacturing was often cheaper when purchased overseas because of the high volume/ bulk in which the joinery can be produced. Now, the requirements are changing; companies' customers are increasingly more concerned with quality and environmental factors than money. They want to know that the materials used in their homes are made with the planet in mind, resulting in more consideration for locally manufactured products. On top of this, COVID-19 has forced a halt on shipping and seen the freight charges soar

The result of Covid 19 on Freight

COVID-19 disrupted everything in our personal and business lives. In the business world, nothing was more negatively impacted than the freight industry. Throughout the pandemic this sector has had to be shut down for varying amounts of time for the safety and prevention of spreading the virus. As a result, delays have been caused around the world due to the standstill, particularly with freight from and going through China. There have been constraints created by certain countries for ocean freight worldwide. In particular, China has suffered because of the restrictions other countries have created as well as their ports being shut down for quarantine periods.

Taken from the New Zealand Ministry of Foreign Affairs, “International sea freight appears to be operating stably between New Zealand and China, though a shortage of shipping containers, mostly due to COVID-19-related actions in other jurisdictions, is beginning to have an impact on shipments to and from China. There have also recently been some peak season and port congestion surcharges applied to certain shipping lanes to and from Chinese ports.”

The price of freighting products to New Zealand has greatly increased which has meant that the price gap between overseas and NZ products is smaller. The price for a 20ft container from Shanghai to Auckland was $1450USD ($2206NZD) in late 2019, in October 2021 that rate had increased by 379% to $5500USD ($8090NZD)1. This price is freight only so additional fees are added on top of this. On top of these price increases, producing within New Zealand means companies have more reassurance that their product is going to be ready with no delays.

Overall from the effects of Covid-19, overseas manufacturers are unable to provide New Zealand businesses with a lot of certainty along with the continuing price increases.

Why Misco Should be Your Only Consideration

Misco Joinery uses environmentally friendly products that are produced by our top quality suppliers. We have a purpose built factory spanning over 3500sqm and state of the art machinery that allows us to not only produce joinery in high volume quantities but our optimisation system means we are able to minimise waste as much as possible when manufacturing our joinery.

COVID-19 has shown us the importance of buying raw materials in bulk. We purchase the most popular board colours in bulk as well as 16mm MDF carcass board and common styles of sinks. This guarantees that we will have enough stock to meet the demand of high volume projects with no setbacks.

Our commercial project management team handles everything from the design stage through to completion. Our team will design the plans to get the best use out of the space, optimise the board so there is minimal wastage and then install the kitchen all whilst keeping communication lines up to date.

Transport is included and we deliver the joinery to site wherever you are in New Zealand. The installation team then installs all of the joinery keeping to your time schedule. Benefits we offer as part of our standard joinery:

● European Hardware

● Laser edging

● Moisture resistant MDF

We make sure we are environmentally conscious by using suppliers that have the same vision as us. We use a low formaldehyde board with a rating of E0 which equates to an emission level of less than 0.5mg/litre. This MDF is manufactured from plantation grown timber cut from sustainable forests. All the MDF products from our suppliers are produced using responsibly sourced wood fibres. The Formica used in the laminate benchtops is created from responsibly sourced paper and low emission resin, making this material very high quality. Here at Misco, we have 535 solar panels that cover the majority of the factory roof. The energy produced provides approximately 60% of the power for our showroom, offices and factory.