State of the Building and Construction Sector

Purpose

This research is an annual monitor of the state of the building and construction sector. It provides MBIE and building system leaders with information on how best to support sector resilience and monitors the level of sector maturity.

About the report

The 2022 report captures the views and experiences of almost 3000 business owners/managers, workers, and end-users in the building system. The online survey was completed in 2 waves: April-May 2022 (Wave 1) and May-June 2022 (Wave 2).

Key findings

• The building and construction sector is relatively resilient. Three-quarters of business owners/managers were confident that their business would still be operating in two years’ time, with good levels of forward work for the next 12 months. Almost one-third indicated they wanted their business to grow.
• However, there are uncertainties in consumer demand. Key drivers influencing end-users’ intentions to build include: improvements in their financial situation (47%), building costs stabilising (34%), and the availability of preferred building materials and products (33%). 
• Workforce issues could affect the sector’s capacity to meet demand. Almost all business owners/managers wanting to recruit skilled/technical staff, and especially those wanting to grow their business, stated they were experiencing recruitment issues. Tradespeople (e.g., builders, plumbers) were the most sought after and difficult to recruit.
• The sector would benefit from uplifting its capability in the quality of building design and work. For example, 37% of workers reported that they had a good understanding of the Building Act 2004 and the Building Code clauses, while just under half were neutral in their views.
• End-users were not always familiar with the legal protection available to them. Fewer than half of recent homebuilders and renovators who had commenced or completed a new build or renovation in the past year stated they had a written contract.
• Stockpiling of products and workers not following COVID-19 health and safety protocols were common behaviours that had been engaged in by business owners and workers in the past year.
• Looking forward, end-users are incorporating energy-efficient features in their new builds and renovations. The key drivers include wanting to: have healthier homes (64%) and reducing their energy operating costs (61%).
   

Reports

Results of this project are published in the form of Summary and Technical reports.