0:26
In the first half of 2024, construction insolvencies rose almost 40% year on year and this follows a 91% year on year rise in insolvencies in 2023.
0:36
This has and is putting significant capacity constraints on the industry and pushing costs upwards, and this is forecast to continue to 2025.
0:44
The increasing cost of construction has and will therefore continue to affect the government's delivery of nationally significant infrastructure projects, with their 2023 review identifying cost overruns of more than $30 billion, resulting in the forced cancellation of 50 projects to allow the government to stay within their budgeted 10-year infrastructure investment of $120 billion.
1:04
After many years of declining output, the country's residential sector is anticipated to grow and this is supported by the government's $10 billion initiative to help ease the cost of housing crisis, including the completion of 30,000 new social and affordable housing units within the next 5 years.
1:21
The energy and utility sector will experience steady year on year growth of almost 5% through 2028, in line with the government's commitment to increase the prevalence of renewable energy in the national energy mix to 82% by 2030.
1:35
However, equally critical is an investment in new and enhanced energy distribution network assets.
1:40
The demand for energy generation is anticipated to spike significantly within the next three years with many energy hungry data centers coming online to support the economy's adoption of AI working practices, and this further enhances the critical importance of investment in the energy sector.
1:55
In New Zealand, the construction market output is anticipated to return to growth of over 3% after several years of contraction, mainly driven by the major weaknesses in the nation's residential sector.
2:06
Growth will be led by the government's accelerated investment of $4 billion in Rd.
2:10
rail and air transport infrastructure projects and $2 billion in primary care and healthcare infrastructure projects.
2:17
Over a billion dollars will also be spent on new and upgraded schools.
2:21
Significant investment will also be made in the commercial sector with focuses on logistic distribution centers and data centers like Australia.
2:29
Significant investment will be made to the energy and utility sector, with focus on renewable energy and water infrastructure projects.
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