August 2023 highlights from the Infometrics construction update include:
- Residential consent numbers have continued to soften in recent months. However, strong net migration in the near term and signs of a stabilising housing market present upside risks to this forecast.
- Residential work put in place has held up better than consents so far, due to the large backlog of consents still in the pipeline. Delays to projects are easing as supply chain disruptions dissipate and capacity in the industry becomes less stretched. There are also increasing risks of projects being cancelled given less favourable demand conditions.
- Non-residential work put in place has hit a new record high on the back of solid consent growth over the last 2-3 years. This consent growth has taken time to flow through into construction activity due to capacity constraints, supply chain disruptions, and COVID-19 restrictions.
- The biggest change for the industry in recent times has been the improved labour supply following the border reopening in mid-2022, and the inclusion of several construction roles on the government’s immigration Green List.
- Please note – if you are intending to on-share any information form this report, particularly for association or business newsletters, please cite Infometrics as the source.
Source: Infometrics Construction Quarterly update, August 2023.
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