An unprecedented construction boom, the likes of which hasn’t been seen in 40 years, is about to take off in New Zealand, new data indicates.
Building and construction is tipped to grow by at least 10 per cent per annum over coming years, peaking in 2016 when almost $NZ32 billion ($A29.41 billion) worth of activity is anticipated, the National Construction Pipeline report says.
Commissioned by the Building and Construction Productivity Partnership, the report says the whole country will experience a surge in activity but the hotspots will be Auckland, Canterbury, Waikato/Bay of Plenty and Wellington.
“This is a heads-up to the sector,” said partnership spokesman Andrew Reding on Tuesday.
“We want people to be aware that there is an ongoing pipeline of work so they can manage resources appropriately.”
Both residential and non-residential growth is forecast to fuel the boom, but the main drivers are an expected 150 per cent increase in demand for housing in Auckland and the Canterbury rebuild.
“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?” Mr Reding said.
The report details the nature and timing of planned construction activity by type and region and, Mr Reding said, the data helped the industry plan better and co-ordinate projects.
The partnership is a joint industry and government body established in 2011 to look at barriers to productivity in New Zealand’s building and construction sector.
KEY POINTS OF NATIONAL CONSTRUCTION PIPELINE REPORT
- growth in building and construction in New Zealand to surge until the beginning of 2019
- at least 10 per cent increase in activity each year for next four years
- growth expected to peak in 2016
- estimated value of construction activity to be $NZ32 billion ($A29.41 billion) in 2016
- residential building in Auckland is forecast to increase by 145 per cent from 2012-2016
- non-residential building in Canterbury to double from 2012-2016.