Tentative signs that the construction industry is recovering, such as residential consents levelling off, government infrastructure projects restarting, and falling interest rates, are to be celebrated, says the New Zealand Chinese Building Industry Association (NZCBIA).
But the main focus of the report was the workforce, with demographics changing and the growing need to invest in people to service an expected uplift in construction activity.
The report found the workforce is younger and more diverse than ever before, especially in Auckland, where Chinese workers make up 12% of the sector. And though still male-dominated, the number of women in the sector grows each year.
New Zealand has 81,000 active construction enterprises, a figure that has declined from 82,000 the year prior. The sector directly employs 281,000 people, and a further 247,000 are supported through supplier networks, accounting for 18% of jobs nationwide.
Almost 70% of the construction sector revenue goes to suppliers, showing the sector’s deep reliance on a broad range of industries. Many of these businesses are local and heavily impacted by fluctuations in construction activity.
But the big issue is retention. Nearly 95% of hiring is to replace staff who are leaving. Only 6% of workers remain in the same job after five years. 37% of workers have been in their role for less than one year, as has been the case for a while.
High staff turnover drives up recruitment and training expenses, reduces productivity, and contributes to higher accident rates. At the same time, just a third of new entrants arrive with relevant qualifications or experience.
This shows how important structured training strategies are, particularly as the sector positions itself for future growth. Employees who undergo training are far more likely to see wage increases and deliver stronger business results.
BCITO welcomed the report. “The ability of our employers and industries to respond to growth opportunities relies heavily on sufficient levels of skilled professionals across all levels of construction,” says BCITO Director Greg Durkin.
“Industry and Government investment in training now is critical to ensure we have the right numbers of people, with the right skills, in the right trades, at the right time.
“BCITO is committed to working with industry to support economic recovery through effective staff training and development,” he says.
The NZCBIA 2025 Construction Sector Report painted a picture of hope, despite New Zealand’s construction sector generating $94 billion in revenue in 2025, from $99 billion the year prior.
Prepared by noted economist Shamubeel Eaqub, the sector report gives key insights into the economic drivers, the structural state, and the future direction of the construction sector.
The report’s economists are optimistic that the worst of the recession is over and household spending and tourism will improve over the next three years, with strong growth in 2026 and 2027.
The Government’s focus on encouraging investment in infrastructure and housing also instils optimism. Take the National Infrastructure Pipeline, which shows planned future projects totalling $207 billion across the central government, the local government, and the private sector.
“This year, the sector has continued to face real challenges,” says Frank Xu, NZCBIA President. “Activity has slowed, some businesses have stepped back, and uncertainty has tested our resilience. Yet these cycles are not new to us; they are part of the rhythm of construction.
“Behind the numbers, there are real signs of momentum returning,” he says. “After some very difficult years, we are seeing the green shoots of much-needed recovery.
9,800 consented homes in Auckland awaiting development, a backlog of delayed or postponed projects is likely to drive renewed activity when market conditions improve. And that’s only one region.
“We need to invest in people now, before the next wave of activity begins,” says Xu. “Training isn’t just a cost—it’s a competitive advantage. The smartest firms are planning ahead.
“As we look to the future, construction will be shaped by innovation, diversity, and sustainability.”
Stay updated with the latest news by subscribing to our newsletter. Don’t miss out on valuable insights and exciting updates—sign up now to stay connected!
