Farrier Waimak sales improve

Press, 29 October 1981, Page 24

Farrier Waimak sales improve

Sales of Farrier Waimak, Ltd, since balance date show an improvement, the chairman (Mr C, W.' Evans) told shareholders at the annual meeting in Christchurch yesterday. ’ This applies especially to sales' of ready-mixed concrete; these, and sales of aggregate, had risen 16 per cent during the six months to September 30, Mr Evans said.

"This trend to expected to continue, at least until after the elections when more stringent measures may be adopted by the Government to curb the current building boom in the province,” he said, - • ! "

"Although the resurgence in building is bringing some of our old customers back on the books it is interesting to note the increasing number of home owners who are buying their concreting materials, direct “This trend is marked in Europe, Australia, Japan and particularly in the United States where in the last five years ■ more than half the building materials were purchased direct by home owners rather than by contractors.

“The ' advisory service maintained by our company ensures that a large share of the home owners marked is held by us."

Commenting on the future, Mr Evans said that indications were that demand for the company’s products would show some increase, but the caprice of the weather, industrial unrest, and the unpredictability of Government policy made forecasting extremely difficult.

Mr Evans said that the small improvement in the profitability of the contract division was no cause for complacency when one examined the figures provided

by the City Engineer (Mr P. G. Secular) recently when he said that city streets would have, to last 145 years without further major repairs. “Mr Secular outlined the problems that his and other local bodies have to contend with when it is considered that the National Roads Board’s income has dropped 40 per cent and local body petrol tax — which in 1970 represented 33 per cent of the Christchurch City Council’s general rate — now

represented 5.5 per cent “Also between 1976 and 1980 Australia increased-its road expenditure 14 per cent while New Zealand's declined by 34 per cent. During the year two loaders were replaced with new units costing $127,000 each, and “although good trade-in prices were received for the used vehicles it is alarming to note that eleven years identical loaders cost us only $27,000 each.