New Zealand’s construction industry is currently booming, and according to stats presented at a recent Construction Marketing Services (CMS) Executive briefing, this boom is not going to be slowing down any time soon.
This is great news for the trades sector - with more than 80,000 homes estimated to be built throughout Auckland over the next five years – meaning more work for tradespeople and more jobs for young people.
However, the increase in construction has resulted in a skills shortage and trades businesses have become stretched for resources.
Population growth and housing shortages are driving Auckland’s construction boom
While the whole nation is experiencing a construction boom, Auckland in particular is undergoing high levels of growth, with new subdivisions set to sprout up throughout the region in coming years.
With a population close to 1.5m people, Auckland’s resident population is growing rapidly. Every week, an estimated 819 new residents flock to New Zealand’s largest city in hopes of landing one of the 405 new jobs that are created every week.
Auckland’s housing shortage has resulted in 344 new homes being built every week to meet demand.
Auckland’s commercial sector is also thriving, with strong demand for qualified tradespeople. Every two days a new street is created and every day an estimated 670 new vehicles are brought in through the Ports of Auckland to drive on them. The education sector is also placing pressure on the construction industry, demanding eight new classrooms to be built in the city every week.
Do the pros outweigh the cons?
While Auckland’s construction industry promises a prosperous future for those of us who work in the trades sector, there are a number of concerns that this boom has brought on.
Liquidity and credit concerns are now on the radar for developers and home-owners alike, and the huge labour shortage, which has been strongly felt down in Christchurch, means homeowners and businesses may be left in the lurch for a while.
Another issue is that some contractors are looking at getting around this skills shortage by looking abroad. Hiring offshore talent may result in more expensive, less experienced tradespeople. If this becomes commonplace, building costs will increase, labour costs will go up, and poor workmanship and compliance issues with imported goods could become risk factors.
Thanks CMS for providing us with this valuable information that helps demonstrate just how quickly Auckland’s construction industry is growing.