A number of recent surveys have shown that the housing market boom is fuelling demand for construction workers and leading to business growth for manufacturers and construction focussed businesses.
An ANZ survey of job advertisements found job ads in building and construction rose for the fifth consecutive month in June, with most regions experiencing a pick up. The number of ads was 9.1 percent higher than a year ago.
“Job ads data suggests that employment demand is strengthening as the housing and construction sectors boom around the country” said Cameron Bagrie, ANZ’s chief economist.
In addition, the BNZ-Business New Zealand Performance of Manufacturing Index rose 0.5 points to 57.7 in June, where a reading above 50 indicates expansion. This was led by production and new orders, and manufacturing firms have indicated that they expect they will need to hire more staff to meet demands.
Further, the fifth edition of the biannual Rider Levett Bucknall (RLB) Crane Index for the second quarter of 2016 was published recently and highlighted the period of growth in New Zealand’s construction industry. RLB physically tracks the number of cranes in the country’s key cities to provide a simplified measure of their construction workload.
The RLB index shows that there are 19 more cranes nationally since the last analysis in the fourth quarter of 2015, constituting a 24 per cent increase. The data also shows that since the second quarter of 2014, when the index was first published, the number of cranes has increased 38 per cent nationally.
These statistics reflect the consistent growth of the construction industry in Auckland. According to commentators, this is driven by the population increases in the city. “This construction underpins commercial property requirements for additional offices, industrial and retail premises, as well as infrastructure like roads, schools and hospitals to support Auckland’s fast-growing number of residents,” said John Church, Bayleys national commercial director.
This looks set to continue, as recent studies have shown that even with Auckland construction ramping up, the number of new homes being built is barely half of what is required every year until 2030 to house the city’s booming population.