New Zealand Chinese Building Industry Association (NZCBIA)’s Post

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New Zealand Chinese Building Industry Association (NZCBIA)

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Construction sector productivity flat since 1985 A new report highlights widespread productivity challenges in the construction sector, underlining the urgency of the government’s plan to make it easier and more affordable to build, Building and Construction Minister Chris Penk says.    “The New Zealand Chinese Building Industry Association have released a report investigating the building and construction sector and outlining the opportunities and challenges of one of New Zealand’s most important sectors.    “The construction sector is a crucial part of the economy. The report found that the sector contributed $99 billion dollars in sales in 2023 and indirectly supports over half a million or 20% of all jobs in New Zealand.    “However, the report paints a grim picture of the sector and points to a number of issues, including the fact that productivity levels have remained the same since 1985.   “Another key challenge is the slow and inefficient build process, which leads to longer wait times and higher costs. Worryingly, the report found that the time it takes to build a home has increased by 50% from 13 months to 19 months.   “These factors combine to create an unaffordable housing market which forces Kiwi families to spend more and more of their income on housing. It is unacceptable that renters now spend nearly 40% of their income on housing.    “This is reflected in the report which asked industry participants to describe the construction sector with one word, with the most common response being ‘expensive’. This is exactly why the government is focused on streamlining the building consent system and removing unjustifiable red tape that is slowing down the build process.   “Lifting productivity in the sector will not happen overnight but it is vital to build more homes so more Kiwi families can benefit from having a stable home and all the associated social and health benefits. “In the last six months the government has already progressed a raft of changes to address some of the issues raised in the report, including: 🔸 Removing barriers for overseas building products. 🔹 Progressing work to make remote inspections the default approach which offers significant productivity gains over traditional methods of inspections.  🔸 Making it easier for minor changes to be made to a building consent to remove the need for an additional application to be lodged for small changes. 🔹 Amending regulations so that smaller dams are not subject to excessive compliance costs.  🔸 Reviewing the earthquake-prone building system to better balance safety with cost and risk.    “I thank the NZCBIA for this insightful report into the building and construction sector, which has reconfirmed how critical it is we progress changes to make it easier and more affordable to build, so that we can lift the standard of living for all New Zealanders.” The report can be found here: https://lnkd.in/gqRZp-rv

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