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RNZ News
19 hours ago
- Business
- RNZ News
Sector leader urges overhaul as builders face mental health crisis: 'You can't scale chaos'
Financial instability, rising living costs, low pay and a lack of mental health support contributed to a mental health crisis in the construction sector. Photo: 123RF Warning: This article discusses suicide. A business leader says urgent reform is needed to address what he describes as a deepening mental health crisis in New Zealand's construction sector. Research shows that suicide rates in the industry are 25 percent higher than other sectors , with Māori, Pasifika, women, migrant workers, apprentices and labourers among those most at risk. According to Marti Amos (Ngāpuhi, Ngāti Manu), the New Zealand-based head of a global mentoring service The Professional Builder , these statistics are worsened by a number of factors including: financial instability, rising living costs, low pay, lack of mental health support and a training system focused on trade skills rather than business knowledge. "Nearly one construction worker dies by suicide every week," Amos said. "That should be sounding alarm bells across the country." Reports show that construction workers account for around 7 percent of working-age male suicides in Aotearoa . The estimated burden of suicide in the industry is around $1.1 billion annually. Marti Amos (Ngāpuhi) says urgent reform is needed to tackle New Zealand's construction sector mental health crisis. Photo: Supplied Amos, author of The Profitable Builders Playbook said a major contributor is that many builders are thrown into business ownership without the financial literacy, training or systems to succeed. "The construction industry has some of the highest suicide rates around the world. The key drivers - especially for company owners - is they don't understand their numbers well. "They've come from a background of being great craftsmen, doing great projects, but it's a really different skillset to becoming a great business owner." He said many tradies work under fixed-price contracts, where small mistakes can lead to serious financial fallout. "The average build could be anywhere from $400,000 to $500,000 to $1.5 to $2 million. If you get that wrong, you can get into financial difficulty very quickly. "You can be just one missed milestone payment away from being in serious problems." Amos said the pressure of trying to keep a team employed - without stable work ahead - is also taking a mental toll. "It goes through this: Do the work, do the work, do the work, and then they're like, 'Holy sh*t, we've only got six to eight weeks of work for my 12 guys'. "That can lead to lying awake in bed at 3am thinking, 'How do I figure this out?'" Amos said many workers are stuck on what he calls the "builders hamster wheel". "It's like they build themselves a prison, a business they grow to hate and that they can't get out of, 'cos you can't scale chaos and you can't scale lack of profits. 'Cos when you try and do more, everything is on your shoulders - like pricing. Amos believes part of the solution lies in revamping apprenticeship and trade programmes to include business and financial training. "Our people are incredible on the tools - but many aren't equipped to run a business, manage cashflow or navigate the stress that comes with it." He's calling for business training to be integrated into trade qualifications, saying current systems fall short. "Everyone gets taught how to be a great carpenter, how to do great work, but no one teaches you the fundamentals of how to build a great business. "And so just like at school, you get taught Chemistry, Maths, English, Physics, PE, but no one teaches you about budgeting, saving, communication skills, marketing, all stuff that's gonna help you massively on the outside." Amos believes New Zealand needs to have a look at the curriculum that apprentices are taught. "The government should be putting in some basic training through organisations or partnering with companies who can give this to every building company owner in New Zealand," he said. Amos said visibility and financial confidence are the key to relieving stress and saving lives. "Visibility leads to clarity. And when you've got clarity, you can take the right actions - that's when you start stacking wins. "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 believes the most vulnerable workers - Māori, Pasifika, women, migrants and apprentices - need additional support at a systemic level. "It is wider than just industry - it's cultural, educational. "It's about giving people the tools, the confidence, the learning to know: hey, it's okay to suck when you're trying new things, but you can win. You're not a tree - you don't have to stay stuck in your current circumstances." Amos said the industry needs to stop accepting crisis as normal - and act. "It's only once you go through those hard lessons - underpricing jobs, not knowing your numbers - that you learn: I need to do things differently. And if it's a skill, it can be learned. And if someone else can do it, then I can do it." Building and Construction Minister Chris Penk. Photo: RNZ / Samuel Rillstone In a statement to RNZ, Minister for Building and Construction Chris Penk said the past few years had been tough for the construction sector and its people. "Building productivity has lagged for decades, but the rising cost of doing business, along with cancelled contracts from the pandemic and a tighter economy, has put real financial pressure on tradies and businesses." Penk said the government was working to create the right conditions for the sector to thrive. "Changes like reforming the building consent system might sound technical, but they will have a real human impact by lowering costs and giving the industry a more reliable pipeline of work. "We also know how much of a difference targeted mental health support can make in someone's life. "That's why, in December, the government invested in MATES in Construction through the Mental Health and Addiction Community Sector Innovation Fund." He acknowledged that while there was "still a way to go," things would get better. "We know that when financial stress eases, it becomes easier for people to focus on their work, their families and their own health and wellbeing." Minister for Vocational Education Penny Simmonds. Photo: RNZ / Samuel Rillstone In a statement to RNZ, Minister for Vocational Education Penny Simmonds said the government was "committed to ensuring that mental health and wellbeing are part of a successful apprenticeship journey for all learners". "Under the Code of Good Practice for New Zealand Apprenticeships, Tertiary Education Organisations must ensure apprentices receive appropriate pastoral care, in line with the Education (Pastoral Care of Tertiary and International Learners) Code of Practice 2021. "This includes supporting apprentices with both their physical and mental health needs, their safety and wellbeing by offering information, advice, and identifying those who may need additional support." From 2026, a new independent, industry-led model for work-based learning would be rolled out. Simmonds said this model was the preferred option by both the public and industry during consultation. "It's designed to be more flexible, and responsive to the needs of both learners and the industries so critical to the growth agenda for our economy. "Put simply, we are transforming work-based learning by putting apprentices and trainees front and centre at the heart of the system and placing industry and employers back in the driver's seat, encouraging them to play a hands-on role in shaping training, making sure it's flexible and aligned with regional needs." The new model would involve the creation of Industry Skills Boards, which would set training standards, develop qualifications, and moderate assessments. Apprentices currently with Te Pūkenga will move to these new boards for up to two years, while new students would enrol directly with private providers, polytechnics or wānanga as they become available. Simmonds said the government was focused on "a smooth transition" with minimal disruption. "This is about building a stronger, more resilient vocational system to bring certainty, improve access, and support economic growth," she said. "We're committed to a smooth transition, with as little disruption for learners and employers as possible. This is about building a stronger, more resilient vocational system to bring certainty, improve access, and support economic growth." If it is an emergency and you feel like you or someone else is at risk, call 111.
Scoop
3 days ago
- Business
- Scoop
Urgent Reform Needed To Address Mental Health Crisis In NZ Construction
More needs to be done to address the high rates of suicide in the construction industry, according to the head of one of the world's largest mentoring services for the sector. Recent research shows New Zealand's construction sector is facing a mental health crisis, with suicide rates 25% higher than other sectors and Māori, Pasifika, female, migrant workers, apprentices and labourers among those at higher risk. This is due to a number of factors including financial instability, low pay and lack of mental health support.[1] Marti Amos (Ngāpuhi), a former marketing lecturer at Otago University and the New Zealand-based head of The Professional Builder, says these issues are amplified by the industry's boom-and-bust cycle, cost-of-living crisis and a training model that prioritises trade skills over business acumen.[2] 'Kiwi tradespeople are trained to excel on-site, they are underprepared to manage the multimilliondollar business aspects of their work, with dire consequences for their mental wellbeing. 'Our construction workers account for about 7% of workingage 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 $1.1 billion per annum,' he says. Amos, whose coaching service has supported over 2,500 building companies worldwide over the past 21 years, says the growing mental health crisis among Kiwi builders requires a radical overhaul of the country's traditional construction model - with greater emphasis on financial literacy a priority. '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. '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,' he says. Amos says his concerns extend beyond the daily operational stresses that plague many builders. He says that without a proper understanding of financial management, many are left grappling with severe cashflow challenges, working long hours and sacrificing their personal lives - a situation that has, in many cases, led to overwhelming stress and deteriorating mental health. '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 says. Amos says demand for targeted support from builders around the world is growing rapidly and his service, The Professional Builder (TPB), which started with a team of three people in 2004, has expanded to 56 and is projected to reach 100 employees within the next 18 months. Company revenue is also projected to double to $30 million within the same timeframe. He says TPB operates in five main countries: the US, Canada, the UK, New Zealand and their fastest growing market - Australia. The company has launched an expansion programme to grow the US market, with plans to increase their physical presence there and establish partnerships with hardware wholesalers, similar to their relationships with Carters, ITM and Mitre 10 in New Zealand. Amos says as part of a move to improve financial management in the sector he has now authored a book, The Profitable Builders Playbook, which is aimed at equipping builders with the business acumen needed to navigate these challenges. '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. '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,' he says. More information on The Profitable Builders Playbook is available here [1] BRANZ. (2024). Workplace psychosocial stressors in the construction industry. Retrieved from here. [2] BRANZ. (2024). Workplace psychosocial stressors in the construction industry. Retrieved from here. Marti Amos Marti Amos (Ngāpuhi) is a business strategist, entrepreneur, and global mentor who has helped over 2,500 building company owners scale their businesses and achieve financial independence. As the founder of The Professional Builder (TPB), he has built a team of 56 professionals operating across New Zealand, Australia, Canada, the UK, the US, and Puerto Rico, delivering business growth strategies for the construction sector. Born and raised in Stewart Island, Marti studied commerce at Otago University, where he pursued PhD research on branding. He lectured in Marketing and MBA programs, examined MCom theses, and worked as a Māori students' tutor and thesis officer in Otago's Commerce Division. As a Mannaki Scholarship recipient, he was also awarded the Otago University Postgraduate Māori Scholarship in 1998. Beyond academia, Marti has built eight businesses across wholesale, insurance, mortgage banking, cleaning, and coaching. As founder of Action Coach New Zealand, he ranked NZ's #1 business coach and #2 globally out of 1,250 coaches worldwide. His expertise in business scaling and financial strategy led him to develop TPB, which helps construction business owners increase profitability and efficiency through structured business systems and mentorship. His insights on business growth and financial resilience will be shared in his upcoming book, launching in May 2025.
Techday NZ
4 days ago
- Business
- Techday NZ
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."
