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Market Research Report
Construction in New Zealand - Key Trends and Opportunities to 2023 |
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| Published by | GlobalData | Product code | 661503 | ||||
| Published | Content info | 51 Pages Delivery time: 1-2 business days |
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| Construction in New Zealand - Key Trends and Opportunities to 2023 | ||
| Published: July 4, 2019 | Content info: 51 Pages |
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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 -
This report provides a comprehensive analysis of the construction industry in New Zealand. It provides -
