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.

Infometrics can assist your strategic planning

Gareth Kiernan, Infometrics Chief Forecaster, is available to present his insights into building & property, infrastructure and transport sectors, as well as the New Zealand economy in general. We offer national level insights, as well as a strong focus on individual regions.

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.

What drives aggregates freight?

Aggregates – various forms of crushed rock – are used for building and road construction. These materials accounted for 11% of total freight volumes (tonnes) in 2012/13 but tend to travel short distances. Nevertheless, with growing demand for construction materials, especially in Auckland, aggregates road freight is likely to track upwards over the years ahead.

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.

Budget 2018: Government gets realistic on KiwiBuy

Today’s Budget gives us a clearer picture of the government’s intentions for housing over the next four years. More practical KiwiBuild targets have been mixed in with increased spending for health and education building, alongside a state housing boost. However, details are scant, and increasing funding without detailing exactly where it will be spent signals to us that actual activity will be pushed back further.