Insights into New Zealand’s construction sector
As New Zealand recovers from the recent economic downturn, there has been a 7.4% increase in the volume of residential building work. As a result, the construction industry has experienced positive growth.
In December 2009, the seasonally adjusted volume of all construction work rose nearly 1%. Strong net migration and low interest rates are driving current demand.
A recent Department of Building and Housing Outlook report forecasted that construction activity will improve in 2010.
An abundance of projects
As of June 2009, 8.4% of the New Zealand workforce was employed by the construction industry. Many builders are self-employed, and specialist sub-contractors usually work in a small to medium sized business.
A large proportion of construction projects occur in the most populated areas of New Zealand including Auckland, Wellington, Christchurch, Hamilton and Napier-Hastings. The total value of all building work in the year ending December 2009 was NZ$10.823 billion. Commercial construction was significantly impacted by an increase in demand from the education sector. Education building has increased more than 20% in the past two years.
According to a survey done in June 2009, the construction industry has grown 66% over the last 10 years. It’s the fastest growing sector within the New Zealand economy.
Key Resources
We suggest looking at the following resources:
- The Department of Building and Housing manages New Zealand’s building legislation and standards
- The Building Research Association of New Zealand provides independent research information and a bi-monthly magazine covering the trends of the industry
- Master Builders is an industry association for employers and professionals involved in the building and construction trades
- The New Zealand Contractors Federation is a national organisation representing the civil engineering, construction and general contracting industries
- The Building & Construction Industry Training Organisation develops and implements industry standards and qualifications for the building and construction sector
- New Zealand Institute of Quantity Surveyors (NZIQS) supports members’ interests and promote standards for quantity surveying in New Zealand
- The Certified Builders Association of New Zealand is an organisation for employers and professionals in the building industry
- The Industry Capability Network works to connect project managers and contractors of major procurement projects to New Zealand suppliers of relevant products and services.
