Kia ora koutou,

This is my first Sector News update as BCITO’s new Chief Executive Officer and I'm excited to have joined BCITO at such an important stage of its growth, as it returns to industry as a Private Training Establishment (PTE).

I’ve spent my first few months travelling around the country to connect with staff, employers, apprentices and industry partners. It has been wonderful to see the commitment, pride, and hard work happening across our sectors every day. These conversations continue to shape how we support industry and strengthen trade pathways.

Current economic climate

At the beginning of 2026, there was much commentary on the ‘green shoots’ of recovery for the economy, which last week's GDP figures validated was real. The data shows GDP rose by 0.8% in the first quarter of 2026, the highest quarterly growth since September 2023. It was a higher rate of growth than Australia, and well above the OECD average.

This was, however, before the Middle East conflict began and both business and consumer confidence took a hit. With that said, I remain cautiously optimistic that if we can see a halt in the conflict, and continued pick up in consenting activity, confidence might pick up where it left off.

It is a timely reminder of the importance of being ready for when the inevitable uptick in our industry happens – and it will happen. Investing in trade training now will give our employers and industries the competitive edge when the economy picks up.

NAG meetings

In early May, we hosted our annual National Advisory Group meetings in Wellington for all 16 of our sectors. These meetings are an important way for us to connect with those at the forefront of industry. Thank you to everyone who attended and helped with organising them.

2026 Budget overview

This year’s Budget focuses heavily on investing in trade training for secondary school students and encouraging more people to enter the trades, such as $69 million towards Trades Academies. The Incentives for Growth Fund of $400 million has been allocated to encourage councils to enable more housing, which will impact our industry. Key vocational education announcements include:

• Industry Skills Boards (ISBs): $15 million will be allocated to the new ISBs to begin developing industry subjects for secondary schools.
• Fees-Free Scheme Scrapped: The final-year Fees Free university scheme has been officially scrapped, with funding redirected towards the trades. This means that this is the last year in which students completing their studies will be eligible for fees free.

It's encouraging to see an increased investment into the trades and a strong commitment towards government construction projects. The focus on school trade pathways is a positive step towards promoting careers in construction for our rangatahi (young people) and provides future opportunities for how BCITO can support trade careers from school. While these investments don't necessarily have a direct impact on us today, it is certainly positive news for our future workforce development.

As we look ahead to the second half of the year, I’m looking forward to meeting many more of you at our graduations and industry events.

Nga mihi nui,
Jason