New Zealand to invest $129b in infrastructure over next decade

The latest Infometrics Infrastructure Pipeline Profile shows that average infrastructure investment across the country is expected to be 28% higher over the next 10 years compared to the 2010-2018 period. A total of $129 billion in capital projects are estimated to be built over the 2019-2029 period.

RBNZ’s risky assumption clouds OCR outlook

The August Monetary Policy Statement was the most influential yet under new Governor Adrian Orr, even though there was no change to the official cash rate (OCR). Mr Orr pushed out expectations for a rates hike until 2020, sending the New Zealand dollar sharply lower.

But it was the Governor’s assertion that rates could and would move lower, if weak indicators persist, that is both his biggest warning and most questionable stance.

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.

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.

Trump’s tariffs threaten to start a trade war

Last month, US President Donald Trump imposed tariffs on imports from Canada, Mexico, and the European Union, alongside tariffs on over US$34b of Chinese imports. Taking into account tariffs imposed earlier this year, about US$90b of Chinese imports to the US are now covered, with threats that all US$505b of Chinese imports could yet be hit.

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.