Digging into the 2021 Construction Industry Survey Results

The 2021 Construction Industry Survey represents an industry-wide farewell to the covid blues! Now in its fifth year, respondents see a promising future for construction, with more than half of New Zealand contractors (55 per cent) expecting a turnover growth in the next 12 months. This is a significant increase from last year’s 23 per cent. By moving away from the potential recession concerns of last year, owners and managers can now work on future-proofing their business with an increased focus on technology.

To download the survey results, click here.

What the future holds

While it may be too soon yet to talk of a long-term recovery, contractors large and small are far more optimistic than they were 12 months ago. Founded on greater clarity about the pipeline of work, 30 per cent of respondents are expecting turnover to increase by more than 10 per cent. This is in line with Ministry of Business, Innovation and Employment (MBIE) projections that expect infrastructure activity^[1] to increase to NZ$10.1b in 2025.

Three Waters assets are projected to require between $120b and $180b investment over the next three decades, which supports the survey results where participants identified Three Waters projects and maintenance efforts with the most significant number of opportunities for increasing capability. This is followed closely by roading (24 percent), public transport (17 percent) and public infrastructure (16 percent).

Acceleration of digital technologies

Last year taught businesses lessons on resilience. This year, it’s been noted that these lessons have indeed been taken on board: 61 per cent are now confident in the ability of their business to withstand change and overcome challenges. More than half say that their confidence is based on technology’s ability to improve efficiency and solve issues, with 60% of contractors using technology to measure the efficiency of asset utilisation. This data, which are collated via Teletrac Navman’s fleet management solution and in-vehicle technologies, helps businesses decide where to invest capital expenditure – or where assets are being underutilised and could be subbed out for hire over ownership.

Further encouraging data highlights the role technology plays in managing health and safety in the workplace. The results showed that 77% of respondents used technology to measure adherence to workplace health and safety.

However, seeing as New Zealand construction companies are slow to adopt new technology, with many respondents still noting they’re only at planning and research stages, it will be important to further educate decision-makers on new technology and how it can help their bottom-line.

 

The Construction Industry Survey is a partnership between Teletrac Navman and Civil Contractors New Zealand (CCNZ) aimed to help build a comprehensive picture of New Zealand’s civil construction industry and the experiences of those within the industry. You can access the full results of the 2021 Construction Industry Survey here.

 

[1] https://www.mbie.govt.nz/assets/national-construction-pipeline-report-2020.pdf