The Registered Master Builders Association of NZ surveyed its members around their pipelines of work and how the national lockdowns of 2020 have affected future potential business.
Of those surveyed 64% say their projected pipelines have dropped by 10%, another 32% have experienced a drop of 30% or more. With building and construction making up some $19 billion of New Zealand’s GDP it will be one of the main forces driving recovery. With residential construction making up 60% of revenue and a national housing crisis ongoing this is perhaps the perfect storm to get the industry booming again and support our economy in regeneration and growth.
Construction and residential projects underway are mostly made up of pre-Covid approvals. The survey shows that consumer confidence and access to finance are major concerns for clients at this time. The current environment however suggests that the time has never been better, with record low interest rates and an abundance of builders and tradesman with the available time and interest in taking on new projects.
How does the building and construction sector help with recovery? In New Zealand the industry accounts for 540,000 direct and indirect employees with 80% of all apprentices being based in the residential sector. More housing and projects provide more opportunities and address the housing crisis. Money that would have been spent on holidays overseas and travel in general has clearly been reduced and so many people are spending their cash on the quality and liveability of existing homes and as such the residential construction industry continues to boom.
This summary was written based off the article by David Kelly, Chief Executive of Master Builders NZ – “Residential building critical for recovery” on constructionnews.co.nz.
For more in-depth analysis on the survey and a more detailed breakdown of the proposed plan read the full article here: http://www.constructionnews.co.nz/opinion/residential-building-critical-for-recovery-by-david-kelly