Kia ora, Construction Professionals!
Posted on October 17, 2024
Kia ora, Construction Professionals!
Kia ora , Welcome to the October edition of our 2024 construction sector newsletter. The year has continued to show resilience in the New Zealand building industry, with some key developments to be aware of this month.
1. Sector Growth Amidst Economic Headwinds
Despite global economic challenges, New Zealand’s construction sector is expected to see a modest 1.3% growth for the year, continuing into 2025. While inflation and higher interest rates have slowed some projects, demand for new housing, especially in Auckland, Wellington, and Christchurch, remains solid.
The government’s investment in infrastructure projects, such as public transport and green energy, is a significant driver. The shift towards sustainability is also creating opportunities in renewable energy construction, retrofitting older buildings, and eco-friendly urban developments.
2. Auckland’s Housing Demand and Plastering Surge
Auckland, as always, continues to be a hotspot for residential construction. The ongoing housing shortage, paired with high immigration rates, is pushing both public and private sectors to ramp up housing projects. In particular, there has been a surge in demand for plastering and finishing services as developers seek to quickly bring properties to market.
Plastering has become a key focus area due to changes in insulation and weatherproofing regulations that prioritize thermal efficiency and long-lasting finishes. This opens up fresh opportunities for specialized plasterers who can meet the evolving demands.
3. Construction Technology & Innovation
The adoption of advanced construction technology is increasing as firms look for ways to improve productivity and reduce costs. Prefabrication and modular building techniques are becoming more common, cutting construction times and reducing labor costs.
Additionally, the rise of Building Information Modelling (BIM) and drones for site inspections is transforming how projects are planned and executed. These technologies are enhancing accuracy in design and minimizing errors during construction, leading to smoother project delivery.
4. Regulatory Updates
In October, the Building for Climate Change Programme is expected to announce updates to its roadmap, which includes revised carbon reduction targets for the construction industry. The focus will be on promoting low-carbon materials and energy-efficient building practices, impacting both commercial and residential construction.
New health and safety regulations concerning the use of scaffolding and worker protection are also anticipated this month, aimed at improving onsite safety and reducing accidents in the industry.
5. Skills Shortage – An Ongoing Challenge
The shortage of skilled labor continues to put pressure on the sector. With significant competition for qualified builders, carpenters, and plasterers, businesses are facing delays in project completion. Companies are increasingly turning to apprenticeship programs and overseas recruitment to fill the gap, but the long-term solution will require sustained efforts to train local talent.
6. Outlook for 2025
Looking forward to 2025, the outlook is cautiously optimistic. While the sector faces hurdles with rising costs and labor shortages, continued investment in infrastructure and housing is expected to drive momentum. Green building practices and innovation in construction technology will play pivotal roles in shaping the future of the industry.
Keep in Touch!
Stay tuned for more updates and insights in next month’s newsletter. As we move through the rest of 2024, we remain confident that the construction sector will continue to evolve, innovate, and adapt to meet the challenges ahead.
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