Construction in New Zealand - Key Trends and Opportunities to 2024

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 -

• 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 (2015-2019) and forecast (2020-2024) 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

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

• 3.1 Economic Performance
• 3.2 Political Environment and Policy
• 3.3 Demographics
• 3.4 COVID-19 Status

4 Construction Outlook

• 4.1 All Construction
• 4.2 Commercial Construction
• 4.3 Industrial Construction
• 4.4 Infrastructure Construction
• 4.5 Energy and Utilities Construction
• 4.6 Institutional Construction
• 4.7 Residential Construction

5 Key Industry Participants

• 5.1 Contractors
• 5.2 Consultants

6 Construction Market Data

7 Appendix

• 7.1 What is this Report About?
• 7.2 Definitions
• 7.3 GlobalData Construction

List of Tables

List of Tables

• Table 1: Construction Industry Key Data
• Table 2: New Zealand, Key Economic Indicators
• Table 3: New Zealand, Commercial Construction Output by Project Type (Real % Change), 2015-2024
• Table 4: New Zealand, Top Commercial Construction Projects by Value
• Table 5: New Zealand, Industrial Construction Output by Project Type (Real % Change), 2015-2024
• Table 6: New Zealand, Top Industrial Construction Projects by Value
• Table 7: New Zealand, Infrastructure Construction Output by Project Type (Real % Change), 2015-2024
• Table 8: New Zealand, Top Infrastructure Construction Projects by Value
• Table 9: New Zealand, Energy and Utilities Construction Output by Project Type (Real % Change), 2015-2024
• Table 10: New Zealand, Top Energy and Utilities Construction Projects by Value
• Table 11: New Zealand, Institutional Construction Output by Project Type (Real % Change), 2015-2024
• Table 12: New Zealand, Top Institutional Construction Projects by Value
• Table 13: New Zealand, Residential Construction Output by Project Type (Real % Change), 2015-2024
• Table 14: New Zealand, Top Residential Construction Projects by Value
• Table 15: New Zealand, Key Contractors
• Table 16: New Zealand, Key Consultants
• Table 17: New Zealand, Construction Output Value (Real, US$ Million)
• Table 18: New Zealand, Construction Output Value (Nominal, NZD Million)
• Table 19: GlobalData Construction Market Definitions

List of Figures

List of Figures

• Figure 1: Asia Pacific, Construction Output (Real % Change), 2020
• Figure 2: New Zealand, Construction Projects Pipeline by Sector (US$ Billion)
• Figure 3: New Zealand, COVID-19 Confirmed Cases
• Figure 4: New Zealand, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2015-2024
• Figure 5: New Zealand, Construction Output Value, by Sector (Real, US$ Million), 2015-2024
• Figure 6: New Zealand, Construction Value-Add, 2009/2010 Chain-Volume Measures, Seasonally Adjusted, % Change YoY
• Figure 7: New Zealand, Total Value of Building Work Put in Place, % Change YoY
• Figure 8: New Zealand, Gross Fixed Capital Formation, 2009/2010 Chain-Volume Measures, Seasonally Adjusted, % Change YoY
• Figure 9: New Zealand, Total Value of Building Consents Issued, % Change YoY
• Figure 10: New Zealand, Construction Projects Momentum Index
• Figure 11: New Zealand, Commercial Construction Output by Project Type (Real, US$ Million), 2015-2024
• Figure 12: New Zealand, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 13: New Zealand, Commercial Buildings Put in Place, NZD Million, % Change YoY
• Figure 14: New Zealand, Foreign Tourist Arrivals (in Thousands)
• Figure 15: New Zealand, Retail Sales (NZD Billion)
• Figure 16: New Zealand, Accommodation and Food Services Value-Add (NZD Million, 2009/2010 Chain-Volume Measures)
• Figure 17: New Zealand, Retail and Wholesale Trade Value-Add, 2009/2010 Chain-Volume Measures, % Change YoY
• Figure 18: New Zealand, Industrial Construction Output by Project Type (Real, US$ Million), 2015-2024
• Figure 19: New Zealand, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 20: New Zealand, Manufacturing Value-Add (NZD Million, 2009/2010 Chain-Volume Measures)
• Figure 21: New Zealand, Performance of Manufacturing Index, Seasonally Adjusted
• Figure 22: New Zealand, Sales of Manufactured Goods, NZD Million, % Change YoY
• Figure 23: New Zealand, Mining Value-Add, 2009/2010 Chain-Volume Measures, (NZD Million, % Change YoY)
• Figure 24: New Zealand, Total Overseas Merchandise Trade, NZD Billion, % Change YoY
• Figure 25: New Zealand, Infrastructure Construction Output by Project Type (Real, US$ Million), 2015-2024
• Figure 26: New Zealand, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 27: New Zealand, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2015-2024
• Figure 28: New Zealand, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 29: New Zealand, Electricity Generation and Consumption, % Change YoY
• Figure 30: New Zealand, Institutional Construction Output by Project Type (Real, US$ Million), 2015-2024
• Figure 31: New Zealand, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 32: New Zealand, Healthcare and Educational Buildings Put in Place, % Change YoY
• Figure 33: New Zealand, Residential Construction Output by Project Type (Real, US$ Million), 2015-2024
• Figure 34: New Zealand, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 35: New Zealand, Total Value of Building Work Put in Place, NZD Million, % Change YoY
• Figure 36: New Zealand, Total Number of New Dwellings Consented, % Change YoY
• Figure 37: New Zealand, House Sales, in Thousands, % Change YoY
• Figure 38: New Zealand, Headquarters of Key Contractors (% of Total Project Pipeline)
• Figure 39: New Zealand, Headquarters of Key Consultants (% of Total Project Pipeline)