Business World

Statistics New Zealand Expects Record Year for NZ Construction

Workers on a construction siteData from Statistics New Zealand showed that residential construction activity in New Zealand would set a new record for the year ended June 2017.

Building approvals for more than 30,450 projects, comprising new houses, apartments, townhouses and flats, rose 4.7 per cent in the last 12 months. In Canterbury, for instance, builders spent almost $11.5 billion for housing projects between April 2011 and March 2017, indicating a resurgence of construction activity since earthquakes struck the region. This means Esko and other safety equipment suppliers have been dealing with an increasing demand for high-quality safety products.

Record Activity

The number of consents for new homes in the country will eventually spark an increased demand for safety equipment and building materials. Whilst growth for June declined on a seasonally adjusted basis, new approvals for this year are still expected to exceed the number of consents in 2016, according to Warwick Quinn, CEO of Building and Construction Industry Training Organisation (BCITO).

In June, building consents dropped 8.3 per cent from May, whilst there were more than 30,000 approvals in 2016. Overall, the increased activity in the construction sector bodes well for employment. Quinn said that the BCITO has actively launched recruitment efforts to fill a demand for workers. Job opportunities have increased amid a building boom in the country, so choosing a career in trade is now a good option.

Regional Growth

Statistics New Zealand’s data also listed the growth in consents by region, including in Christchurch and Auckland as two cities with the most construction activity. Building repairs and renovations from quakes contributed to the increase. On the other hand, non-residential construction activity has grown twice in 2013 and would continue in the near future, according to the data.

Residential and commercial construction have been important economic indicators, as a building boom signals a positive outlook not just for the economy, but also for job growth and business revenues.