Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Construction boom will challenge

Construction boom will challenge

New Zealand is on the brink of the biggest construction boom in 40 years, according to a joint industry and government report released today.

The National Construction Pipeline report points to an unprecedented level of building and construction in New Zealand over the next five years.

This report is consistent with The New Zealand Sectors Report 2013 on Construction published on 20 November, but provides new information on the future industry workload including the nature and timing of planned construction activity by type and region.

The report brings together economic forecasts and data from the public and private sectors on their forward construction workload from 2013 to 2018. It shows at least 10 per cent per annum growth for four years, peaking in 2016 when nearly $32 billion of construction activity is predicted.

The report forecasts an increase in construction right across the country in both residential and non-residential sectors. Construction hot spots are Auckland, followed by Canterbury and then Waikato/ Bay of Plenty and Wellington. The main drivers of growth are Auckland’s residential housing demand more than doubling (projected 150 per cent increase) and the Canterbury rebuild.

The National Construction Pipeline report was commissioned by the Building and Construction Productivity Partnership (Productivity Partnership), a joint industry and government body established in 2011 to address barriers to productivity in New Zealand’s building and construction sector. It was prepared by Pacifecon (NZ) Limited in collaboration with BRANZ.

“This is a heads-up to the sector,” says Productivity Partnership spokesperson Andrew Reding. “We want people to be aware that there is an ongoing pipeline of work so they can manage resources appropriately.

“The National Construction Pipeline report is validated by a database of client intentions - projects that we know are going ahead. What’s striking is not just the rate of construction growth, but the duration of that growth. We’re looking at a sustained level of activity over many years. The question for the industry is how are we going to meet that demand without compromising quality?

“New Zealand is a small market and the Productivity Partnership is sharing this information to encourage the demand and supply sides of the industry to work collaboratively. Visibility of forward demand can assist planning, scheduling of investment in skills and plant, and co-ordination of the timing of projects, particularly public works.”

The Productivity Partnership intends to release national construction forecasts on a regular basis.

A fact sheet summarising the National Construction Pipeline report is attached. The full report can be viewed at: http://buildingvalue.co.nz/sites/default/files/National_Construction_Pipeline.pdf


ends


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news