The current state of productivity in the NZ construction industry

Abstract

The construction sector in New Zealand is considered to have a continuing low level of productivity. The industry has been contributing less to the National GDP than construction industries in America, Australia and the United Kingdom. This research aimed to determine via document analysis and survey questionnaires, whether New Zealand’s construction industry might accomplish a 20% increase in GDP contribution (ie 5.4% to 6.48% by 2020) as set by the Productivity Partnership in 2012. Publications suggested that the construction industry’s contribution to the National GDP follows the average profit- based productivity trend of four of the NZX listed construction or construction related companies. If true, it is forecasted that the target of a 20% increase will not be reached. Since 2017, the four selected NZX listed construction or construction related companies’ productivity has plateaued, or decreased, over the last eighteen months. A survey was undertaken as well, by 15 selected Auckland based commercial construction related employees focussed on gauging whether the respondents’ companies placed an emphasis on productivity measures and reporting. In addition, the survey responses included the respondents’ perceptions of the influence of productivity inhibitors and enhancers in their own companies and the wider NZ construction industry. The companies and respondents ‘showed their cards’, and their true productivity issues were pinpointed.