Reports by The National Infrastructure Pipeline show a growth of over $30 billion in infrastructure activities in June. New Zealand is currently recording over $125.1 billion worth of initiatives that are underway and in planning.
The National Infrastructure Pipeline is a national database containing New Zealand’s infrastructure initiatives, investments, and activities. It showcases early insights and potential demand for builders and related stakeholders in the construction industry.
Here are some of the notable highlights from the report.
Over $230 billion total value of projects
New Zealand records $237.1 billion as the total value of projects in the pipeline for the June update. This is increased from $30.2 billion in the March quarter. Records also show that about $125 billion of initiatives (amounting to 2500 projects) are currently underway.
It’s important to note that the report includes numbers from all state highway maintenance activity from 2024 to 2034, which was added for the first time in the pipeline data, along with Christchurch Men’s Prison and Hawke’s Bay prison redevelopment initiatives.
Projects entering construction and procurement
In June, there were 2,565 projects recorded as under construction. These numbers highlight projects that are at various stages of construction, from having just started to near completion.
Breaking this data down further:
· 1,490 projects ($13.1 billion) were from local and regional councils
· 870 projects ($27.2 billion) were from central government entities
· 205 projects ($12.5 billion) were from commercial providers (i.e., state-owned entities, private organisations, and council-controlled organisations)
The June report also highlighted that 483 projects (worth $9 billion) were in the procurement stage. A further 338 projects are expected to enter procurement during the next 12.
Estimated workforce for the pipeline
Around one-third of the construction workforce works in infrastructure. The report indicates that a significant number of skilled workers are required to complete the estimated work in the pipeline.
Labourers and machine operators remain one of the biggest required workforces.
“Great news for the construction sector”
Infrastructure Minister Chris Bishop states that these new pipelines are “great news for the construction sector and the wider economy”. While there were previous concerns about workload and construction activity, the industry can look forward to more work to come.
“The pipeline now contains over 9200 projects that are underway or being planned, helping New Zealand’s infrastructure construction sector plan ahead for major upcoming projects and hire and retain key staff in the right locations,” said Bishop.
According to Bishop, government projections showed there is at least $17.5 billion in projected potential infrastructure spending across 2025. This amounts to about 4% of the nation’s GDP.
“The commission continues to work with infrastructure providers to improve the transparency and quality of information that is available,” Bishop said.
“A more complete pipeline improves the effectiveness and value that we can gain from this tool. I recently wrote to all councils reminding them of the importance of contributing and updating their pipeline data, and I expect the same engagement from our central government agencies too.”
Bishop said that the number of infrastructure providers contributing to the pipeline has grown every quarter since the coalition government took office. There are 121 organisations now contributing, which he claims is encouraging.
“The commission is currently collecting data for the September quarter. This will inform the final version of the National Infrastructure Plan, which will be delivered in December.
“I encourage the remaining councils and any infrastructure provider who is not yet contributing to reach out to the commission, because a strong pipeline of infrastructure projects means a growing economy with more jobs and more opportunities for Kiwis.”
Key takeaway
As builders anticipate more work from the pipeline, proactive action must be taken now. Builders should consider looking at their workforce demand, as well as their planning and scheduling of future work. This report can also help builders make informed decisions on the type of skills that they should invest in for their projects.
Working with a broker who can tailor the right insurance coverage is the first step to taking on more jobs and projects with confidence.
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