Construction regional commentaries
With contrasting residential and commercial demands, varying local council priorities and funding levels, combined with an array of weather and climate concerns, New Zealand’s regions each have a unique outlook when it comes to construction.
For example, more than three-quarters of Auckland construction leaders are actively looking for additional staff and 52% have sufficient work confirmed beyond the next year - a more favourable position than indicated by leaders elsewhere. As Aotearoa’s largest construction market, it’s no surprise that Auckland is seeing stronger pipelines and more job opportunities. Interestingly, profit margins among Auckland construction businesses are not as strong as in the South Island, where 33% of leaders reported an increase in profit margins in the past year (versus 24% in Auckland and 21% in the rest of the North Island.)
Many Auckland construction business owners and leaders report concerns about increased competition and competitive tendering, which is likely to have a trickle-down impact on forward work and profit margins. Meanwhile, the rest of the North Island (excluding Auckland) felt the most positive about their overall business performance in the past two weeks, at 67% versus 61% in the South Island and 56% in Auckland.