How will NZ's construction industry escalate productivity to meet the largest predicted construction demand in decades - is a lean approach one of the magic bullets?

Abstract

Low productivity levels for at least twenty years in New Zealand’s construction industry have only realised any improvement by increasing hourly inputs, (a 0.2% per annum rise since the 1990’s). NZ’s Productivity Commission in 2010, and the NZ Sector Report by Minister Joyce in 2013, regards increased productivity in the construction industry as essential for the benefit of all New Zealanders, as it affects the Gross Domestic Product, employment rates and living conditions. The construction industry employs around 170 000 people, and predictions are that there will be unprecedented building and construction growth over the next 5-10 years, due in the main to Auckland’s predicted 25% population growth by 2025, and Christchurch’s rebuild following the major earthquakes four years ago. Auckland will see a 68% increase in new building according to Minster Joyce (2013) outstripping Christchurch’s rebuild demands over the same period.

The paper investigated how to potentially and realistically increase productivity and business performance, across design and construction management in the New Zealand Construction Industry, over the next decade or so. An in-depth and critical analysis of relevant international journals, conference papers, and New Zealand government agency and non-agency publications was undertaken. The key findings included a very strong recommendation that senior management personnel in the construction industry need to fully implement a lean management approach in the NZ productivity context, that is then driven by full consultant and on-site employee involvement and ownership.