Across the residential, non-residential, and infrastructure sectors, the value of building consents has increased for the most part year-on-year, with employment in these respective sectors following a similar trend. Infrastructure development has been steadily growing across New Zealand, as the nation’s infrastructure needs evolve in conjunction with population growth. In 2022, transport infrastructure construction dominated infrastructure projects in New Zealand in terms of value.
Auckland residential constructionThe Auckland region leads the nation in terms of total construction work value, particularly regarding residential construction. The change in the number of new dwellings consented in the Auckland region has been continually positive over the past few years, driven by strong demand for residential homes. In response to housing shortages, the New Zealand Government and the Auckland Council have pledged to build 50,000 new homes. Aucklanders have faced increasing housing costs due to these shortages, with the average cost of a residential property surpassing or close to one million New Zealand dollars in many Auckland districts.
Resilience in constructionIn recent years, the construction industry has had to deal with many challenges such as reduced cash flow, workforce disruption, supply chain issues, and uncertainty in future projects. Whilst the number of employees within New Zealand's construction industry has witnessed a year-on-year growth since 2013, construction employers are finding it increasingly difficult to fill job vacancies. Business owners and managers are having particular trouble recruiting tradespeople, technical workers, and supervisors. Furthermore, there has been a rise in building company liquidations and frustration within the industry, spurred on by construction material shortages and price-hikes, particularly in terms of plasterboard and timber.
In a bid to address the recent issues within the construction industry, the New Zealand government initiated a three-year action plan from 2022 to 2025 in partnership with New Zealand’s largest construction companies. The Construction Sector Accord aims to tackle skilled worker shortages, higher construction costs, and sustainability issues, as well as accelerate the use of innovative technologies, in the hopes of boosting productivity and the sector’s resilience and economic success. The Accord was signed by many companies across various industries with interests in the construction sector, including Fletcher, Downer, Watercare, Fonterra, and Tonkin & Taylor.