Larger firms increase their share of residential building activity

Consolidation in New Zealand’s residential construction industry has resumed since 2011 as building activity has recovered from the Global Financial Crisis. In 2017, the 100 largest firms made up almost 40% of consents, although that figure slipped to 37% in the March 2018 year. We had expected this trend of consolidation to take place, but it contrasts with a declining market share for the top 100 firms in Australia. Does this apparent fragmentation of the market in Australia foreshadow a similar change for New Zealand?

Downside risks to NZ’s growth outlook accumulate

New Zealand’s provincial economies are poised to drive growth in the economy, building on the recovery in dairy prices during 2016, according to Infometrics latest economic forecasts. Spending activity in the regions is comfortably outpacing activity in the main centres, with commodity prices for most exports holding at high levels.

Another construction firm bites the dust

The placement of Ebert Construction in receivership continues the trail of woe in the non-residential construction industry. Businesses in the industry seem to be facing ongoing profitability problems, as reflected by the difficulties experienced by Fletcher Building and Hawkins (among others) over the last couple of years. Yet these problems are occurring despite total construction activity growing by an average of 5.6%pa since mid-2011.

Putting automation in perspective

The potential job losses from automation between now and 2036 could be more than five times the job losses in shrinking occupations since 2000. At a regional level, areas with faster economic, employment, and population growth have generally exhibited more dynamism in their workforces over the last 20 years. As a result, it seems likely that they will be better able to adapt to changing workplace needs in coming years.

Media Release: Provincial New Zealand dominates economic growth prospects

New Zealand’s provincial economies are poised to drive growth in the economy, building on the recovery in dairy prices during 2016, according to Infometrics latest economic forecasts. Spending activity in the regions is comfortably outpacing activity in the main centres, with commodity prices for most exports holding at high levels.

How renovation work fits alongside new residential building

One of the comments I often hear talking to people in the residential construction industry is that alterations and new building activity move in different directions. The comment is usually made in the context of a drop-off in new building, when alterations and additions (A&A) are viewed as a cushion to soften the downturn. But the data does not back up this assertion.

KiwiBuild – otherwise known as “pulling numbers out of your arse”

Since Labour came into power late last year, its KiwiBuild policy has been shrouded in confusion by contradictory statements from government departments and within the government itself about exactly what the policy means for the construction sector. Phil Twyford, the Minister for Housing and Urban Development, has been adamant that “the overwhelming effect of the KiwiBuild plan will be to deliver new houses over and above what the private market is delivering.” He has been quick to downplay the possible crowding out of private sector work. Furthermore, the government had indicated that part of the policy was to buy some properties “off the plan”, yet Mr Twyford had seemingly contradicted this statement continually reiterated that KiwiBuild would result in an additional 10,000 dwellings being built per year over and above what the market would otherwise have delivered.