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Construction in New Zealand – Key Trends and Opportunities to 2021

Construction in New Zealand – Key Trends and Opportunities to 2021

Synopsis

In real terms, New Zealand’s construction industry registered an average annual growth rate of 7.3% during the review period (2012–2016). This growth was supported by government investments in the development of transport infrastructure, industrial parks, healthcare facilities and residential buildings.

The country’s construction industry is expected to continue to expand in real terms over the forecast period (2017–2021), driven by the government’s focus on the development of transport infrastructure, energy and utilities facilities.

Under the Thirty-Year New Zealand Infrastructure Plan 2015, the government plans to spend NZD157.9 billion (US$110.0 billion) to develop transport networks, reliable electricity infrastructure, clean drinking water pipelines, telecommunications infrastructure, schools and hospitals by 2025.

In real terms, the industry’s output value is forecast to record a compound annual growth rate (CAGR) of 4.04% over the forecast period, compared to 7.43% during the review period.

Summary

Timetric’s Construction in New Zealand – Key Trends and Opportunities to 2021 report provides detailed market analysis, information and insights into New Zealand's construction industry, including:

  • The New Zealand construction industry's growth prospects by market, project type and construction activity
  • Analysis of equipment, material and service costs for each project type in New Zealand
  • Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the New Zealand's construction industry
  • Profiles of the leading operators in the New Zealand's construction industry
Scope

This report provides a comprehensive analysis of the construction industry in New Zealand. It provides:
  • Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in New Zealand using construction output and value-add methods
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type
  • Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
  • Analysis of key construction industry issues, including regulation, cost management, funding and pricing
  • Detailed profiles of the leading construction companies in New Zealand
Reasons To Buy
  • Identify and evaluate market opportunities using Timetric'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 Timetric's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
Key Highlights
  • The government’s focus on providing affordable houses via social housing programs is expected to drive growth of the residential construction market over the forecast period. Under the Social Housing Reform Program, the government plans to bridge the gap between the demand and supply of affordable houses. For this, in 2016, the government announced plans to spend NZD207.4 million (US$144.5 million) to build affordable houses in the country by 2020, with an aim to build 100,000 affordable houses by 2025.
  • The residential construction market is expected to be supported by rising residential building permits. According to Statistics New Zealand, total permits issued for the construction of houses across the country increased by 9.5%, rising from 18,012 units in 2015 to 19,721 units in 2016.
  • The government is focusing on the construction and expansion of metro lines. The government plans to double the capacity of Auckland's metro rail network by 2020. Accordingly, under the City Rail Link (CRL) extension plan, it plans to build a new underground railway line through the Auckland city centre.
  • The government launched the Ultra-Fast Broadband (UFB) and Rural Broadband Initiative (RBI2) in 2015. Under the RBI2 program, the government plans to provide at least 5 megabits per second (Mbps) to 90.0% of country’s rural population by 2025.
  • The government’s commitment to providing a quality service in healthcare, as well as increased expenditures on healthcare and education, are expected to support the institutional construction market over the forecast period. In 2016 budget, the government increased its total spending on the healthcare sector by 29.4%, rising from NZD2.4 billion (US$1.7 billion) in 2015 to NZD3.2 billion (US$2.2 billion) in 2016.


  • Executive Summary
  • Industry Outlook
    • Commercial Construction
    • Industrial Construction
    • Infrastructure Construction
    • Energy and Utilities Construction
    • Institutional Construction
    • Residential Construction
  • Key Issues and Developments
  • Market Data Analysis
    • Construction Output and Value Add
      • Construction output by project type
        • Table New Zealand's Construction Output by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Construction Output by Project Type (NZD Million), 2016-2021
      • Construction output by cost type
        • Table New Zealand's Construction Output by Cost Type (NZD Million), 2012-2016
        • Table New Zealand's Construction Output by Cost Type (NZD Million), 2016-2021
      • Construction output by activity type
        • Table New Zealand's Construction Output by Activity Type (NZD Million), 2012-2016
        • Table New Zealand's Construction Output by Activity Type (NZD Million), 2016-2021
      • Construction value add by project type
        • Table New Zealand's Construction Value Add by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Construction Value Add by Project Type (NZD Million), 2016-2021
    • Commercial Construction
      • Commercial construction output by project type
        • Table New Zealand's Commercial Construction Output by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Commercial Construction Output by Project Type (NZD Million), 2016-2021
      • Commercial construction output by cost type
        • Table New Zealand's Commercial Construction Output by Cost Type (NZD Million), 2012- 2016
        • Table New Zealand's Commercial Construction Output by Cost Type (NZD Million), 2016-2021
      • Commercial construction output by activity type
        • Table New Zealand's Commercial Construction Output by Activity Type (NZD Million), 2012-2016
        • Table New Zealand's Commercial Construction Output by Activity Type (NZD Million), 2016-2021
      • Commercial construction value add by project type
        • Table New Zealand's Commercial Construction Value Add by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Commercial Construction Value Add by Project Type (NZD Million), 2016-2021
    • Industrial Construction
      • Industrial construction output by project type
        • Table New Zealand's Industrial Construction Output by Project Type (NZD Million), 2012- 2016
        • Table New Zealand's Industrial Construction Output by Project Type (NZD Million), 2016-2021
      • Industrial construction output by cost type
        • Table New Zealand's Industrial Construction Output by Cost Type (NZD Million), 2012-2016
        • Table New Zealand's Industrial Construction Output by Cost Type (NZD Million), 2016-2021
      • Industrial construction output by activity type
        • Table New Zealand's Industrial Construction Output by Activity Type (NZD Million), 2012-2016
        • Table New Zealand's Industrial Construction Output by Activity Type (NZD Million), 2016-2021
      • Industrial construction value add by project type
        • Table New Zealand's Industrial Construction Value Add by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Industrial Construction Value Add by Project Type (NZD Million), 2016-2021
    • Infrastructure Construction
      • Infrastructure construction output by project type
        • Table New Zealand's Infrastructure Construction Output by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Infrastructure Construction Output by Project Type (NZD Million), 2016-2021
      • Infrastructure construction output by cost type
        • Table New Zealand's Infrastructure Construction Output by Cost Type (NZD Million), 2012-2016
        • Table New Zealand's Infrastructure Construction Output by Cost Type (NZD Million), 2016-2021
      • Infrastructure construction output by activity type
        • Table New Zealand's Infrastructure Construction Output by Activity Type (NZD Million), 2012-2016
        • Table New Zealand's Infrastructure Construction Output by Activity Type (NZD Million), 2016-2021
      • Infrastructure construction value add by project type
        • Table New Zealand's Infrastructure Construction Value Add by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Infrastructure Construction Value Add by Project Type (NZD Million), 2016-2021
    • Energy and Utilities Construction
      • Energy and utilities construction output by project type
        • Table New Zealand's Energy and Utilities Construction Output by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Energy and Utilities Construction Output by Project Type (NZD Million), 2016-2021
      • Energy and utilities construction output by cost type
        • Table New Zealand's Energy and Utilities Construction Output by Cost Type (NZD Million), 2012-2016
        • Table New Zealand's Energy and Utilities Construction Output by Cost Type (NZD Million), 2016-2021
      • Energy and utilities construction output by activity type
        • Table New Zealand's Energy and Utilities Construction Output by Activity Type (NZD Million), 2012-2016
        • Table New Zealand's Energy and Utilities Construction Output by Activity Type (NZD Million), 2016-2021
      • Energy and utilities construction value add by project type
        • Table New Zealand's Energy and Utilities Construction Value Add by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Energy and Utilities Construction Value Add by Project Type (NZD Million), 2016-2021
    • Institutional Construction
      • Institutional construction output by project type
        • Table New Zealand's Institutional Construction Output by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Institutional Construction Output by Project Type (NZD Million), 2016-2021
      • Institutional construction output by cost type
        • Table New Zealand's Institutional Construction Output by Cost Type (NZD Million), 2012-2016
        • Table New Zealand's Institutional Construction Output by Cost Type (NZD Million), 2016-2021
      • Institutional construction output by activity type
        • Table New Zealand's Institutional Construction Output by Activity Type (NZD Million), 2012-2016
        • Table New Zealand's Institutional Construction Output by Activity Type (NZD Million), 2016-2021
      • Institutional construction value add by project type
        • Table New Zealand's Institutional Construction Value Add by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Institutional Construction Value Add by Project Type (NZD Million), 2016-2021
    • Residential Construction
      • Residential construction output by project type
        • Table New Zealand's Residential Construction Output by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Residential Construction Output by Project Type (NZD Million) 2016-2021
      • Residential construction output by cost type
        • Table New Zealand's Residential Construction Output by Cost Type (NZD Million), 2012-2016
        • Table New Zealand's Residential Construction Output by Cost Type (NZD Million), 2016-2021
      • Residential construction output by activity type
        • Table New Zealand's Residential Construction Output by Activity Type (NZD Million), 2012-2016
        • Table New Zealand's Residential Construction Output by Activity Type (NZD Million), 2016-2021
      • Residential construction value add by project type
        • Table New Zealand's Residential Construction Value Add by Project Type (NZD Million), 2012-2016
        • Table New Zealand's Residential Construction Value Add by Project Type (NZD Million), 2016-2021
  • Company Profile: Sicon Ltd
    • Sicon Ltd - Company Overview
      • Table Sicon Ltd, Key Facts
    • Sicon Ltd - Business Description
    • Sicon Ltd - Main Services
      • Table Sicon Ltd, Main Services
    • Sicon Ltd - History
      • Table Sicon Ltd, History
    • Sicon Ltd - Company Information
      • Sicon Ltd - key competitors
      • Sicon Ltd - key employees
        • Table Sicon Ltd, Key Employees
  • Company Profile: Fulton Hogan Ltd
    • Fulton Hogan Ltd - Company Overview
      • Table Fulton Hogan Ltd, Key Facts
    • Fulton Hogan Ltd - Business Description
    • Fulton Hogan Ltd - Main Products and Services
      • Table Fulton Hogan Ltd, Main Products and Services
    • Fulton Hogan Ltd - History
      • Table Fulton Hogan Ltd, History
    • Fulton Hogan Ltd - Company Information
      • Fulton Hogan Ltd - key competitors
      • Fulton Hogan Ltd - key employees
        • Table Fulton Hogan Ltd, Key Employees
  • Company Profile: Naylor Love Construction
    • Naylor Love Construction - Company Overview
      • Table Naylor Love Construction, Key Facts
    • Naylor Love Construction - Main Services
      • Table Naylor Love Construction, Main Services
    • Naylor Love Construction - History
      • Table Naylor Love Construction, History
    • Naylor Love Construction - Company Information
      • Naylor Love Construction - key competitors
      • Naylor Love Construction - key employees
        • Table Naylor Love Construction, Key Employees
  • Company Profile: Faulkner Construction Ltd
    • Faulkner Construction Ltd - Company Overview
      • Table Faulkner Construction Ltd, Key Facts
    • Faulkner Construction Ltd - Main Services
      • Table Faulkner Construction Ltd, Main Services
    • Faulkner Construction Ltd - History
      • Table Faulkner Construction Ltd, History
    • Faulkner Construction Ltd - Company Information
      • Faulkner Construction Ltd - key competitors
      • Faulkner Construction Ltd - key employee
        • Table Faulkner Construction Ltd, Key Employee
  • Company Profile: Opus International Consultants Ltd
    • Opus International Consultants Ltd - Company Overview
      • Table Opus International Consultants Ltd, Key Facts
    • Opus International Consultants Ltd - Business Description
    • Opus International Consultants Ltd - Main Services
      • Table Opus International Consultants Ltd, Main Services
    • Opus International Consultants Ltd - History
      • Table Opus International Consultants Ltd, History
    • Opus International Consultants Ltd - Company Information
      • Opus International Consultants Ltd - key competitors
      • Opus International Consultants Ltd - key employees
        • Table Opus International Consultants Ltd, Key Employees
  • Appendix
    • What is this Report About?
    • Definitions
      • Table Timetric Construction Market Definitions
    • Methodology
    • Contact Timetric
    • About Timetric
    • Timetric's Services
    • Disclaimer

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