Market Research Report
Construction in New Zealand - Key Trends and Opportunities to 2024
|Published by||GlobalData||Product code||661503|
|Published||Content info||51 Pages
Delivery time: 1-2 business days
|Construction in New Zealand - Key Trends and Opportunities to 2024|
|Published: November 11, 2020||Content info: 51 Pages||
Prior to the Coronavirus (COVID-19) crisis, the construction industry in New Zealand had been expanding at a healthy rate, growing by 4.6% in real terms in 2019 - up from 4.1% in 2018 - supported by investment in transport infrastructure and commercial and residential projects. However, the disruption caused by COVID-19 containment measures has ended this expansionary trend.
In late March 2020, the government-imposed stage-4 lockdown restrictions in the country, under which only essential construction works were permitted to progress. The temporary disruptions caused by the lockdown restrictions and social distancing measures have heavily weighed on New Zealand's construction industry, with its value-add plummeting by 28.6% year on year (YoY) in Q2 2020 - sharply down from a decline of 5.2% YoY in the previous quarter.
GlobalData expects the construction industry to shrink by 6.2% in real terms this year. However, in order to provide a boost to the economy in general and the construction industry in particular, the government announced plans to fund large shovel-ready infrastructure projects following the withdrawal of the lockdown. Accordingly, in early April, the government announced the formation of the Infrastructure Industry Reference Group (IIRG), comprising a group of industry leaders, and tasked them with identifying public as well as private sector infrastructure projects with a value of NZD10 million (US$5.8 million) or above, which can be started immediately or at the latest within the next six months. As of early July, the IIRG received a total of 1,924 project proposals across 40 sectors, of which the government approved 150 projects worth NZD2.6 billion (US$1.5 billion) in July 2020.
The industry is expected to recover over the remaining part of the forecast period and register an average annual growth of 3.8% between 2021-2024, supported by investments in residential, transport, institutional and renewable energy projects. As part of the COVID-19 Response and Recovery Fund (CRRF), in May 2020, the government allocated NZD3 billion (US$1.7 billion) to fund infrastructure projects across the country. In addition, growth will also be supported by an investment of NZD12 billion (US$7 billion) to build and upgrade road, rail, school, and hospital projects under the New Zealand Upgrade Programme which was launched in December 2019.
This report provides detailed market analysis, information, and insights into New Zealand's construction industry, including -
This report provides a comprehensive analysis of the construction industry in New Zealand. It provides -