Two recently released reports shed light on the state of NZ’s construction industry, from vertical building to civil infrastructure
While the New Zealand Chinese Building Industry Association (NZCBIA) celebrates a decade of advocacy with its 2025 Annual Construction Sector Report, the 2025 Civil Construction Industry Survey (featured in DOW390 last month), produced by Civil Contractors New Zealand (CCNZ) and Teletrac Navman, offers a sobering view of a sector under immense strain.
With the arrival of the latest report from NZCBIA, we thought it would be interesting to compare the two side-by-side and see if there were any parallels in the two closely aligned sectors.
Though focused on different segments of the construction landscape, the reports share surprising parallels – both underscore the impacts of economic slowdown, the urgent need for skilled workers, and the critical role of government investment in shaping the industry’s future.
A sector stabilising vs a sector struggling
The NZCBIA report provides a cautiously hopeful outlook. Despite a dip in overall revenue from $99 billion to $94 billion, key indicators – such as the levelling off of residential consents and falling interest rates – suggest that the building sector may be turning a corner. Economist Shamubeel Eaqub, who authored the report, notes that government infrastructure projects are beginning to restart and mortgage activity is slowly rebounding.
In contrast, the CCNZ/Teletrac Navman survey, which DOW reported on last month, reveals a civil construction sector in a deeper state of flux. Business confidence has plummeted to just 16 percent, down from 50 percent in 2021, with 73 percent of civil contractors citing a lack of available work as their most pressing concern. The effects are particularly severe for small and medium-sized enterprises (SMEs), 27 percent of which expect revenue reductions this year.
While the building sector is stabilising – with the number of construction enterprises only slightly falling from 82,000 to 81,000 – civil construction firms are downsizing. Over 42 percent have reduced staff, and many warn of an exodus of skilled workers unless project pipelines become more visible and consistent.
Workforce woes and the talent tension
Both reports point to a shared challenge: labour shortages, high turnover, and underinvestment in training.
The NZCBIA emphasises that nearly 95 percent of hiring is simply to replace departing workers, with only six percent of staff remaining in their role after five years. Meanwhile, a third of new hires arrive with no formal training or qualifications, undermining productivity and safety.
The civil sector faces a different side of the same coin. The lack of available projects has led to widespread underemployment, driving experienced professionals out of the industry. Both reports highlight a growing consensus that investment in training and workforce development must be prioritised now, not later.
Greg Durkin, director of BCITO – which co-sponsored the NZCBIA report – put it plainly: “The ability of our industries to respond to growth opportunities relies heavily on sufficient levels of skilled professionals. Industry and Government investment in training now is critical.”
The $207 Billion Question
One point of intersection is the National Infrastructure Pipeline, which lists $207 billion in future government, local, and private sector projects. Both reports reference this figure, albeit with different tones.
The NZCBIA sees the pipeline as a signal of future opportunity – a foundation for renewed building activity. The civil construction sector, however, is more sceptical. CCNZ’s Alan Pollard warns that many of these projects remain “in the discussion stage” and that the gap between announcements and actualised work is threatening business stability.
Both reports call for greater transparency and delivery certainty from government. In the CCNZ survey, a staggering 85 percent of civil contractors said a clearer project pipeline would improve confidence and financial resilience.
Shared priorities for the future
While the NZCBIA report focuses more on workforce demographics and recovery signals, the CCNZ/Teletrac Navman report highlights climate resilience and digital transformation as defining themes for the future.
Civil contractors are increasingly concerned about infrastructure’s ability to cope with climate events, with 58 percent lacking confidence in current resilience. Calls for investment in seawalls, stopbanks, and climate-adaptive projects are growing louder.
At the same time, both sectors recognise technology as a vital tool for adaptation. In civil construction, 60 percent of firms say using digital tools helps them win contracts, making tech adoption a business imperative. While the NZCBIA report touches less on tech, its emphasis on productivity and training aligns with broader industry moves toward innovation and smarter work practices.
Two reports, one message
Despite their different scopes – vertical building versus civil infrastructure – the 2025 NZCBIA and CCNZ reports ultimately tell a complementary story: New Zealand’s construction industry is at a critical juncture.
Both sectors are weathering economic uncertainty, with civil construction hit harder but vertical construction showing signs of stabilisation.
Both face severe workforce challenges, with talent retention and training emerging as make-or-break issues.
Both stress the importance of government clarity and consistency, especially regarding long-term infrastructure projects.
Both acknowledge that future resilience – whether climate, technological, or workforce-based – requires action now.
As NZCBIA president Frank Xu summed up during the association’s 10th anniversary at Parliament: “These cycles are not new to us – they are part of the rhythm of construction. With the commitment and drive of our members, I’m confident we’re ready to build that future together.”
Whether that future is built on more housing or more highways, one thing is clear: New Zealand’s construction sector cannot afford to stand still.