Building and Construction Sector Trends Annual Report indicates sector remains strong, increasingly diverse and innovative

Dr Alice Cleland, Research and Analysis Manager at MBIE says findings in the report show that the sector has remained strong despite ongoing challenges brought by the COVID-19 pandemic.

“The building and construction sector is New Zealand’s fifth largest economic contributor, and while it was impacted during the pandemic, the sector has come out strong and is showing signs of recovery. The number of new homes consented reached record-levels and the total value of construction activity rose 12.4 per cent over the last year,” said Dr Cleland.  

“As one of the largest national employers, it is encouraging to see the sector becoming more diverse. There is an increase in the number of workers from Asian and Pasifika ethnicities, the number of workers with higher education is growing, and the number of female workers employed in the sector has nearly doubled in the last decade,”

“Workers in the construction sector tend to be younger when compared against the national workforce. There is a steady pipeline of students training in construction with around 36,000 learners - three times as many as a decade ago; and of those, more than 33,000 are in construction apprenticeships.”

The report reviews the building and construction sector in New Zealand and looks at international trends and innovations that could be adopted to make the industry more environmentally friendly, a safer place to work, more cost efficient and resilient.

“Climate change is one of the key drivers shaping building trends, while digitalisation and decarbonisation are two key concepts behind new and emerging trends in building designs, technologies, and materials,” said Dr Cleland.

Trends in building design include zero- and low-carbon emission buildings, retrofitting existing buildings, medium density housing, and accessible buildings.

Trends in building technologies include the continuation of sector digitalization, and new methods for generating and storing clean energy for domestic buildings.

“The circular economy concept is being introduced in the new generation of construction materials that are being developed, such as the creation of construction materials from building and organic waste,” said Dr Cleland.

“As the sector evolves, we need to be ahead of the change. This report provides a crucial look into where we have been, where we are, and where we could go in the future.”