Construction in New Zealand - Key Trends and Opportunities to 2023

The pace of expansion in New Zealand's construction industry slowed in 2017 and 2018, as investment growth was undermined by weak investor confidence as a result of a shortage of a skilled workforce, high wages and a lower profit margin. The industry's growth will pick up pace in 2019, in part supported by government plans to boost infrastructure spending.

In real terms, New Zealand's construction industry's output grew at a compound annual growth rate (CAGR) of 4.85% during the review period (2014-2018). The industry's output value, measured at constant 2017 US dollar exchange rates, increased from US$33.3 billion in 2014 to US$40.2 billion in 2018. Although output growth slowed in 2017 and 2018, the general upward trend can be attributed to public and private sector investment in residential and transport infrastructure projects. Under the National Land Transport Programme, the government invested NZD13.9 billion (US$9.7 billion) to develop the country's overall transport infrastructure during 2015-2018.

The industry's output value in real terms is expected to rise at a CAGR of 3.57% over the forecast period. The industry is consequently expected to rise from a value of US$40.2 billion in 2018 to US$48 billion in 2023, measured at constant 2017 US dollar exchange rates.

Residential construction was the largest market in the industry during the review period, accounting for 41.2% of its total value in 2018. The market is expected to remain the largest over the forecast period, and account for 43.8% of the total value in 2023. Over the forecast period, market output is expected to be supported by government efforts to balance housing demand and supply through the construction of affordable housing units. Infrastructure construction accounted for 20.0% of the industry's total output in 2018, followed by energy and utilities construction with 18.3%, commercial construction with 11.5%, institutional construction with 6.8% and industrial construction with 2.2%.

The total construction project pipeline in New Zealand including all mega projects with a value above US$25 million - stands at NZD73.1 billion (US$50.5 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 66.7% of the pipeline value being in projects in the pre-execution and execution stages as of July 2019.

The report "Construction in New Zealand - Key Trends and Opportunities to 2023", provides detailed market analysis, information and insights into New Zealand's construction industry, including -

• New Zealand's construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in New Zealand's construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline

Scope

This report provides a comprehensive analysis of the construction industry in New Zealand. It provides -

• Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in New Zealand, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.

Table of Contents

• 1 Executive Summary
• 2 Construction Outlook: At-a-glance
• 3 Latest News and Indicators
• 4 Key Drivers and Risks
• 4.1. Economic Performance
• 4.2. Political Environment
• 4.3. Demographics
• 4.4. Risk Profile
• 5 Construction Outlook
• 5.1. All Construction
• 5.1.1. Outlook
• 5.1.2. Project analytics
• 5.2. Commercial Construction
• 5.2.1. Outlook
• 5.2.2. Project analytics
• 5.3. Industrial Construction
• 5.3.1. Outlook
• 5.3.3. Project analytics
• 5.4. Infrastructure Construction
• 5.4.1. Outlook
• 5.4.2. Project analytics
• 5.5. Energy and Utilities Construction
• 5.5.1. Outlook
• 5.5.2. Project analytics
• 5.6. Institutional Construction
• 5.6.1. Outlook
• 5.6.2. Project analytics
• 5.7. Residential Construction
• 5.7.1. Outlook
• 5.7.2. Project analytics
• 6 Key Industry Participants
• 6.1. Contractors
• 6.2. Consultants
• 7 Appendix
• 7.1. What is this Report About?
• 7.2. Definitions
• 8 About GlobalData
• 8.1. GlobalData at a Glance
• 8.2. GlobalData Construction
• 8.3. Disclaimer
• 8.4. Contact Us

List of Tables

• Table 1: Construction Outlook
• Table 2: New Zealand, Key Economic Indicators
• Table 3: New Zealand, Construction Output Value (nominal, NZD Million)
• Table 4: New Zealand, Construction Output Value (nominal, US$ Million)
• Table 5: New Zealand, Top Commercial Construction Projects by Value
• Table 6: New Zealand, Top Industrial Construction Projects by Value
• Table 7: New Zealand, Top Infrastructure Construction Projects by Value
• Table 8: New Zealand, Top Energy and Utilities Construction Projects by Value
• Table 9: New Zealand, Top Institutional Construction Projects by Value
• Table 10: New Zealand, Top Residential and Mixed-Use Construction Projects by Value
• Table 11: New Zealand, Key Contractors
• Table 12: New Zealand, Key Consultants
• Table 13: GlobalData Construction Market Definitions
• Table 14: Construction Risk Index Ratings and Scores

List of Figures

• Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix
• Figure 2: New Zealand, Construction Projects Pipeline by Sector (NZD Billion)
• Figure 3: New Zealand, Building Permits (Total Numbers)
• Figure 4: New Zealand, Total Number of Residential Buildings Constructed and Renovated (Number, Thousands)
• Figure 5: New Zealand, Risk Comparison, Q2 2018
• Figure 6: New Zealand, Risk Comparison Review
• Figure 7: New Zealand, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
• Figure 8: New Zealand, Construction Output Value, Growth Matrix
• Figure 9: New Zealand, Construction Output Value, by Sector (NZD Million), 2014-2023
• Figure 10: New Zealand, Construction Projects Pipeline, Projected Annual Spending by Stage (NZD Million), 2018-2023
• Figure 11: New Zealand, Construction Projects Pipeline, Value by Stage (NZD Million)
• Figure 12: New Zealand, Commercial Construction Output by Project Type (NZD Million), 2014-2023
• Figure 13: New Zealand, Commercial Construction Projects Pipeline, Value by Stage (NZD Million)
• Figure 14: New Zealand, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (NZD Million), 2018-2023
• Figure 15: New Zealand, Industrial Construction Output by Project Type (NZD Million), 2014-2023
• Figure 16: New Zealand, Industrial Construction Projects Pipeline, Value by Stage (NZD Million)
• Figure 17: New Zealand, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (NZD Million), 2018-2023
• Figure 18: New Zealand, Infrastructure Construction Output by Project Type (NZD Million), 2014-2023
• Figure 19: New Zealand, Infrastructure Construction Projects Pipeline, Value by Stage (NZD Million)
• Figure 20: New Zealand, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (NZD Million), 2018-2023
• Figure 21: New Zealand, Energy and Utilities Construction Output by Project Type (NZD Million), 2014-2023
• Figure 22: New Zealand, Energy and Utilities Construction Projects Pipeline, Value by Stage (NZD Million)
• Figure 23: New Zealand, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (NZD Million), 2018-2023
• Figure 24: New Zealand, Institutional Construction Output by Project Type (NZD Million), 2014-2023
• Figure 25: New Zealand, Institutional Construction Projects Pipeline, Value by Stage (NZD Million)
• Figure 26: New Zealand, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (NZD Million), 2018-2023
• Figure 27: New Zealand, Residential Construction Output by Project Type (NZD Million), 2014-2023
• Figure 28: New Zealand, Residential Construction Projects Pipeline, Value by Stage (NZD Million)
• Figure 29: New Zealand, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (NZD Million), 2018-2023
• Figure 30: New Zealand, Headquarters of Key Contractors (% of Total Project Pipeline)
• Figure 31: New Zealand, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
• Figure 32: New Zealand, Headquarters of Key Consultants (% of Total Project Pipeline)
• Figure 33: New Zealand, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)