Construction in New Zealand – Key Trends and Opportunities to 2022

GlobalData's "Construction in New Zealand – Key Trends and Opportunities to 2022", report provides detailed market analysis, information and insights into New Zealand’s construction industry.

In real terms, New Zealand’s construction industry registered relatively low growth during 2016-2017, owing to an unstable economic performance and weak manufacturing activity. Additionally, poor business confidence during the general election in 2017 also affected the flow of investment in construction projects. Overall, the industry posted positive growth during the review period (2013-2017), supported by public and private sector investment in the development of the country’s residential and transport infrastructure.

The industry’s output value in real terms increased at a review-period compound annual growth rate (CAGR) of 3.92%, and is expected to post a forecast-period (2018-2022) CAGR of 3.55%. Over the forecast period, the industry’s expansion is expected to be supported by investments in transport, energy and residential infrastructure projects. In the 2018 budget, the government announced plans to invest NZD42.0 billion (US$30.4 billion) until 2022 to develop the country’s overall infrastructure.

The government’s aims to develop transport infrastructure and improve regional connectivity are expected to promote the industry’s growth over the forecast period. Government flagship programs such as the KiwiBuild program and transport development program are expected to support the expansion of the industry over the forecast period.

The report provides –
– New Zealand construction industry's growth prospects by market, project type and construction activity
– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in New Zealand’s construction industry
– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Key Highlights

– GlobalData expects the energy and utilities construction market output to record a forecast-period CAGR of 4.53% in nominal terms, supported by the government’s effort to develop the country’s energy sector with a special emphasis on renewable sources. In November 2017, the government announced its plan to generate 100% of its energy from renewable sources by 2035, up from 80% in 2016.
– In December 2017, the New Zealand Transport Agency approved the Regional Land Transport Plan. With a total investment of NZD338.7 million (US$240.0 million), the program includes the construction and renovation of road intersections, bridges, interchanges, culverts and service roads; the program is scheduled for completion in 2028. Additionally, under the Rural Highways Black Spots Program, the Transport Agency aims to reconstruct 90 high risk roads in the country by 2021 with an investment of NZD616.3 million (US$429.0 million).
– GlobalData expects the residential construction market to retain its leading position over the forecast period, with a share of 43.2% of the industry’s total value in 2022. In October 2017, under the KiwiBuild program, the government announced plans to develop 100,000 new housing units in the country by 2027 with an investment of NZD2.0 billion (US$1.4 billion).
– As a part of the Ultra-Fast Broadband (UFB) program, in February 2017, the government aims to provide fiber-to-the-premises internet connections with speeds of up to 1,000mbps to 87% of households in over 390 cities and towns by 2022. Additionally, under the Rural Broadband Initiative (RBI), the government plans to enable over 70,000 households in rural areas to gain access to high-speed broadband networks by 2022.
– The total construction project pipeline in New Zealand, as tracked by the Construction Intelligence Center (CIC) and including all mega projects with a value above US$25 million, stands at NZD71.1 billion (US$50.4 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed to late-stage projects, with 67.6% of the pipeline value being in the pre-execution and execution stages as of June 2018.

Scope

This report provides a comprehensive analysis of the construction industry in New Zealand. It provides –

– Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in New Zealand, featuring details of key growth drivers.

– Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

– Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

– Listings of major projects, in addition to details of leading contractors and consultants.

Reasons to Buy

– Identify and evaluate market opportunities using GlobalData'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 GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.