Boom times ahead for construction
New Zealand is on the brink of the biggest construction boom in 40 years, fuelled by demand for housing in Auckland and the rebuild in Canterbury, a new report says.
Other busy regions will be Waikato, Bay of Plenty and Wellington, the National Construction Pipeline report says.
It points to an unprecedented level of building over the next five years and at least 10 per cent yearly growth for four years, peaking in 2016, when nearly $32 billion of construction activity is predicted.
The report is a joint effort of industry and government, pulling together forecasts for 2013 to 2018 from the public and private sectors.
The report was commissioned by the Building and Construction Productivity Partnership, a joint industry and government body set up in 2011 to address the barriers to productivity in New Zealand's building industry.
It was prepared by Pacifecon New Zealand in collaboration with building research organisation BRANZ.
"The main drivers of growth are Auckland's residential housing demand more than doubling (projected 150 per cent increase) and the Canterbury rebuild. This is a heads-up to the sector," productivity partnership spokesman Andrew Reding said.
"We want people to be aware that there is an ongoing pipeline of work so they can manage resources appropriately."
He said the rate and duration of construction growth was striking.
"The question for the industry is how are we going to meet that demand without compromising quality?" Reding said.