Thursday, July 18, 2024

Strong pipeline laid for construction sector

Minister for Building and Construction, Poto Williams says the National Construction Pipeline Report 2021 released today shows the construction sector has held up well during the COVID-19 pandemic and the future outlook is positive.

“The sector can be confident that current levels of demand are expected to continue for some time,” Minister Williams said.

“Today’s report shows that despite disruptions from COVID-19, construction activity is forecast to grow steadily to about $48.3b in 2024, driven largely by the residential sector.”

The annual report provides a projection of national building and construction activity through to 31 December 2026, based on current settings. It includes national and regional breakdowns of actual and forecast residential building, non-residential building and infrastructure activity.

Residential construction remains the largest contributor of national construction activity, making up 58% of total construction value in 2020.

“Demand for housing remains strong and will continue to play a lead role in the industry’s COVID-19 recovery, with residential construction forecast to keep growing for the next few years,” Ms Williams said.

The construction sector is now the fourth-largest largest employer in the country, employing over 281,400 people for the year ended September 2021.

“This has been helped by the Government’s ongoing investment in skills and training with the Construction Skills Action Plan exceeding its target of supporting an additional 4,000 people into construction related education or employment since it as launched in 2018,” the Minsiter said.

“The report also forecasts an increase in infrastructure activity, reflecting the high levels of government investment in this area.”

Infrastructure activity is expected to grow steadily, from $9.2b in 2020 to reach $11.2b in 2026. Growth is expected to be particularly strong in Auckland and Waikato/Bay of Plenty.

“This Government’s swift actions to invest in infrastructure development at the start of the COVID-19 response has meant that the sector has been able to retain and attract talent at a critical time. The sector is now in a robust position to build back better and continue to deliver on this strong pipeline of work,” she said.

Click to read the report.

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