The New Zealand Institute of Building (NZIOB) has welcomed the release of the Ministry of Business Innovation and Employment (MBIE) sponsored ‘National Construction Pipeline Report 2017’ and its companion ‘Future demand for construction workers’ report. Together these reports forecast an increase in construction activity over the next six years necessitating the employment of an additional 56,000 people.
The National Construction Pipeline Report provides five-year and regional forecasts of residential, non-residential and infrastructure activity. It is produced independently by BRANZ and Pacifecon to help the sector’s forward planning.
The report forecasts construction activity to grow by 23% over the next four years, to a peak of $42 billion in 2020. Last year’s report had forecast a shallower peak of $37 billion in 2017.
NZIOB chief executive Malcolm Fleming said, “The Construction Pipeline Report forecasts construction activity of over $37 billion per annum for the foreseeable future, implying a very positive future for building and construction in this country.
“More importantly, the forecasts show a higher peak with a longer duration than previously. The last two Pipeline Reports have shown increasing levels of activity spread over a longer period. This presents an industry that has great certainty, and one that is much less likely to be subject to the boom and bust cycles of the past. The steady growth forecast in the report will create job certainty for those entering the industry.”
The ‘Future demand for construction workers’ report says that, across New Zealand, demand for construction-related occupations is projected to increase by 11% between 2016 and 2022. This equates to an additional 56,000 employees. Occupations expected to experience the greatest growth include plumbers 15%, electricians 14%, and civil engineering professionals, 12%.
Malcolm Fleming says, “The sustained growth forecast across the sector means that the building and construction sector will provide huge opportunities for bright young New Zealanders wanting a rewarding and worthwhile career.
“To this end, NZIOB is collaborating with Careers NZ to showcase the opportunities the sector provides to Career Advisors through its ‘Industry Big Day Out’ programme and the proposed ‘STEM in Spades’ initiative. If realised, STEM in Spades will open the eyes of career advisers and students to the myriad of exciting career opportunities that are on offer in the construction industry. The sector is technology rich and a drawcard to bright young people, with entry points via the Trades, Polytechnics or University qualifications.
“Construction has always been technically complex, provided incredible camaraderie and rewarding collaboration. It is technology rich, sustainable, and well paid. SEEK, the online job listing provider, is on record saying that construction is the ‘sector’ with the highest average advertised salary,” Malcolm Fleming said.