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This issue of Elevate opens up with BCITO director Greg Durkin discussing the vital importance of developing the sector’s future workforce.
We examine the rise of robotics and its potential impact on the industry, and staying with technology, look at how to tell if it’s time to move your project management toolbox to the cloud.
There are pieces on understanding accessible
Jarred
- (03) 961 5088 jarred@markat.co.nz
Jessica Ann - Design
- (03) 961 5075 amber@markat.co.nz
Developing tomorrow’s workforce
Interview with BCITO director Greg Durkin
Through on-the-job training and regular guidance, BCITO partners with industry to develop tomorrow’s skilled workforce, creating futures for dedicated tradies alongside industry employers.
Ben O’Connell spoke with BCITO director Greg Durkin about building the people who build New Zealand.
With over 30 years of experience in vocational education, Greg strongly advocates for the positive outcomes education can deliver for employers, industries, learners, and whānau. A long-time expert and leader in the field, Greg was a flooring business owner before heading to university, where he honed his focus on educational psychology and vocational learning.
Since early in his career, Greg has always been interested in how people make sense of the world, particularly in construction. He fondly recalls when flooring clients would leave in the morning and come home later that day astounded at all the work done. “It’s a really inspiring thing that we experience as tradespeople.”
Apprenticeships aren’t just about developing knowledge and practising skills, but also about learning how that role meets society’s needs. Greg says the equation for success is simple. “Quality materials
By Ben O’Connell
Apprentices experience a range of diverse roles. You’ve got to do something multiple times–sometimes hundreds of times–to be really skilled. At the same time, you can’t make the work boring. There’s a balancing act to that.
- BCITO director Greg Durkin
plus quality people equals the client’s dreams coming true. It doesn’t matter if it’s a commercial building or a new kitchen. Human talent and great materials get the job done.”
BCITO is proudly 100 percent NZ owned and operated, and has been supporting construction industries for more than 34 years. Today they have over 16,000 apprentices nationwide. “All of these people are on a journey, from unskilled to skilled, unknowing to knowing, less capable to very capable.” Along the way,
apprentices are inducted into the industry’s culture. Soon enough, they can take raw materials, combine them with their knowledge and skills, and meet the needs of clients in our communities.
And the culture has surely changed. Greg says it’s a more sophisticated, open, and diverse culture than it once was. It helps that Aotearoa is one of the world’s most diverse nations, but specific to the industry, diversity can mean embracing immigration, women in construction, varied work practices and innovative
products. BCITO works hard to ensure it stays on the pulse of growth and change.
“The homes that tradespeople build today are vastly different from those built even a couple of years ago,” Greg says. New technologies, thermal performance and building envelope expectations, product types, and client expectations are just a few of the changes. Commercial building owners have increased expectations thanks to the improved nature and quality of materials, as well as the enhanced workforce.
“I unashamedly take great pride in saying that New Zealand has one of the most skilled construction workforces in the world,” Greg says. “The size of our nation means people must complete a range of tasks. Our qualified tradespeople are well-rounded and never a one-trick pony.”
Extensively qualified himself,
I unashamedly take great pride in saying that New Zealand has one of the most skilled construction workforces in the world. The size of our nation means people must complete a range of tasks. Our qualified tradespeople are well-rounded and never a one-trick pony.
Greg says his tertiary degrees and trade qualifications are equally valuable. “It’s about where your credentials take you and how you contribute to the part of society that you’re working in.”
Developing tomorrow’s construction workforce has its challenges. Many come back to our increasingly challenging economy.
Greg says current estimates about consent numbers decreasing are short-term. “At BCITO, we are looking further ahead. Ensuring that businesses have the right people, with the right skills at the right time: that’s the long game.” Apprenticeships are typically three-to four-year programmes. One of the many things BCITO does is to encourage industries to think long-term while managing their short-term challenges.
“We understand why some businesses are making
decisions about downsizing staff, reducing overtime, and so on. Most of the employers we work with know that in times of plenty, they need highly skilled staff, and in times of quiet, they need highly skilled staff for different reasons.”
Greg says that when the number of consents drops, strategic businesses pivot away from new builds and towards other projects, some of which don’t require building consents. Businesses who operate effectively during difficult periods understand that. “Firms with well-skilled teams can pivot quickly, and that goes to the value proposition of apprenticeships. BCITO looks carefully at what’s happening in the industry, and we do everything we can to help.”
Nobody markets construction industry careers in New Zealand anywhere near
as much as BCITO. Their campaigns begin with secondary schools, and Greg says what’s most important is ensuring students are aware of their options. BCITO is the largest provider of secondary school programmes nationwide, present at 340 schools. Their Gateway programme, which contributes to NCEA, gives students the opportunity to try out trades. Theory is supported by schools and is reinforced with onsite work experience.
Greg spoke on Gateway and wider industry issues at the Secondary Principals’ Association’s (SPANZ) annual conference in May. Attendees learned how significantly the programme supports people, helping them transition from school to industry, and giving both employees and employers a choice. Greg also discussed the growing unemployment rate. For the
last five or six years BCITO has supported employers finding people to hire. Now, the tables have turned. This change has refreshed and strengthened the workforce of many firms.
Greg understands that it’s hard for job seekers, too. BCITO works intensely to help learners in many ways, from job hunting to literacy and numeracy support, mental health, and learning English. “As an example, lots of construction workers have dyslexia. BCITO makes sure to support learners in that space. It helps them to complete their apprenticeships at the end of the day.”
Accessibility is a cornerstone to putting learning modules together. Greg says designing curricula is a key part of what BCITO does. “We often get groups of industry leaders in the room to work through where support is needed.”
Using carpentry as an example, employers don’t need a manual on how to hold a hammer but look for support regarding plans, specifications, building science, new H1 regulations, and so on. Many industry leaders have extensive knowledge of these topics and need support about how to teach them; that’s where BCITO comes in.
BCITO offers information that demystifies processes in many different ways because no two learners are the same. Videos, documents, and other resources give people opportunities to learn together. Keeping things fresh and engaging is a key focus.
“Apprentices experience a range of diverse roles. You’ve got to do something multiple times – sometimes hundreds of times, to be really skilled. At the same time, you can’t make the work boring. There’s a balancing act to that.”
BCITO has over 400 employees, over 250 of which are on-the-road training advisors. They work on-site with apprentices, capturing evidence and ensuring they’re learning, progressing, and being supported. Greg says the magic happens when BCITO works to connect apprentices and remove the disadvantages that come with being new to a trade.
Feeling isolated as an apprentice can make this transition harder. Over 90 percent of the employers BCITO work with have 20 staff or fewer; apprentices are often the sole newbie for a firm. Greg says that working alone is both powerful and a disadvantage. “When you see a ute going down the road with two people in the front, a dog and a ladder
Apprenticeships aren’t just about developing knowledge and practising skills, but also about learning how that role meets society’s needs.
in the back, that might be the firm! There will be a home base somewhere, but that can be the entire business.”
Further challenges beyond the economy, unemployment, accessibility, and isolation include adapting to physical demands, which can be tough for those coming from school or an office job where they’re not as active, and transitioning from school to the workforce.
“It’s an adult world,” Greg says. “Our employers expect people to turn up and complete the day of work that they’ve been paid for.”
When I asked Greg about cases of bullying and mistreatment, he said incidents happen rarely and that employers are usually equipped to, and do, step in. Employers alleviate challenges like the new environment and its demands where they can.
be exposed to ensure people behave. “Poor behaviour isn’t to be tolerated. While media may amplify the circumstances, apprentices aren’t there to be treated badly and our employers know that. That said, all work involves menial tasks and everyone has to clean up after themselves.”
BCITO has two audiences: employers and future employees. For those interested in construction, Greg says to head into one of the many BCITO regional offices and/or talk to trusted friends and whānau in the industry.
Ultimately, apprentices are an investment, an effort that employers don’t want to waste. “The vast majority of employers ensure staff and apprentices are looked after. They want someone who, down the track, is good for their business.
“Working in the construction industry can be a lot of fun. When you’re on-site with other tradies, there is a strong social bond around a common purpose. There’s a great sense of achievement that comes from building structures that keep our communities safe and well, and delivering great career opportunities for those involved. At BCITO, our staff take immense pride in knowing they contribute to that success.”
On news stories detailing negative tradie experiences, Greg says the bad eggs should
Internet resources about the industry from NZ Certified Builders, Registered Master Builders, and other industry associations are good points of call. These organisations celebrate apprentice and firm award winners online, which can help in understanding industry culture and potential pathways. BCITO uses hero stories on its website, with real-life examples of employers and apprentices (bcito.org.nz).
Greg says employers should know that it’s one thing to employ staff and another to train them. BCITO is always open to talking with firms that are considering taking on apprentices. They can also talk with local secondary schools about the Gateway programme. “It’s try before you buy,” he says. “A student can come to your workplace once or twice a week and experience trades. They’re working and studying, learning about the industry. It’s a great way for employers to test out people who might fit into their business.”
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Uplifting women in construction
BCITO has launched a new ‘Hire Boldly’ campaign aimed at employers in the building and construction trades, to help boost the number of women entering the industry.
The number of women in BCITO apprenticeships has grown from less than one percent in 2015, however women still only make up just over six percent of apprentices.
BCITO’s goal is to raise this figure to 10 percent by December 2025, through focusing on addressing ongoing misperceptions about women’s ability to take on physical jobs.
Reaching this goal will clearly signal the industry is moving forward and considering people based on skills and ability for the role, not gender. In the painting industry, where 24 percent of BCITO apprentices are female, it is no longer unusual to see a woman at the business end of a spray gun, brush or roller.
“Despite the recent slowdown in resource consents and the pipeline of work for New Zealand’s building industry, it’s vital to ensure we have healthy numbers of new people entering the construction industry and building skills for the future. Encouraging more women into the workforce is not only a matter of equality
The number of women in BCITO apprenticeships has grown from less than one percent in 2015, however women still only make up just over six percent of apprentices.
but a strategic move to strengthen our industry’s resilience. Employers play a critical role in shaping the future of construction,” says Greg Durkin, director at BCITO.
In a 2021 report for the Women in Trades Collective, part of industry initiative Trade Careers, almost half of respondents to the employer survey (48 percent) agreed that hiring and supporting women tradespeople was a challenge because it would be hard to accommodate pregnant women in the workplace. 46 percent also said they would find it difficult to hire women because the workplace can be physically challenging.
Women looking for work cited receiving questions from potential employers such as “you realise there is
dirt involved in this job?”, or the outright statement “we’re looking for a male”.
“When we have examples such as the BuildHERS project in Whenuapai, a four-bedroom home project-managed and built entirely by a female crew, they demonstrate how outdated or misinformed these perceptions are. Women can do anything their male colleagues can do, and that’s what we hope to educate more employers about, to help the whole sector reach a goal of 30 percent female representation by 2040,” Durkin says.
Employing more women in construction brings numerous benefits. By encouraging more women to join the workforce, employers can tap into a broader talent pool. A diverse workforce also brings
varied perspectives, leading to innovative solutions and improved problem-solving.
For more information, visit www.buildingwomen.nz
How employers can make a difference
Review hiring practices: Ensure that job advertisements and recruitment processes are inclusive and free from gender bias. Consider implementing blind recruitment practices to focus on skills and experience.
Create supportive work environments: Develop policies and practices that support work-life balance and provide a safe and respectful workplace for all employees. Consider flexible working arrangements and mentorship programmes.
Promote training and development: Encourage and support female employees to pursue training and career development opportunities. This not only benefits the individual but also strengthens the overall skill set of the workforce.
Lead by example: Senior leaders and managers should actively promote diversity and inclusion within their teams. This includes addressing any unconscious biases and championing the benefits of a diverse workforce.
Revolutionising construction
The rise of robotics in building and infrastructure
By Paige O’Brien
The transformative impact of construction robots on efficiency, safety and project management is undeniable.
The construction sector, which has a reputation for carefully implementing new procedures and technologies, is undergoing dramatic changes due to the development of robotics. According to a 2023 report by market research firm Brainy Insights, the construction robots market is expected to grow rapidly from its estimated $168.2 million in 2022 to $774.6 million by 2032.
Construction robots are automated or semiautonomous devices designed to carry out particular duties in the construction sector. They are designed to improve accuracy, safety, and efficiency across a range of construction project phases.
In Japan, the use of construction robots was initially acknowledged in the 1980s due to a lack of physical labour in the workforce caused by an aging
Construction robots are automated or semi-autonomous devices designed to carry out particular duties in the construction sector. They are designed to improve accuracy, safety, and efficiency across a range of construction project phases.
population. They began creating equipment for labourintensive but straightforward construction jobs like excavation and concreting in order to solve this problem. Following the development of over 150 construction robots in the 1990s, the field of construction robots began to take off.
Three main categories of construction robots
Semi-autonomous robots: Once they are set up, semi-autonomous robots can accomplish tasks independently, but they still need some human input. For instance, human workers supervise and do more difficult jobs while the semiautomated mason (SAM) lays bricks quickly.
Fully autonomous robots: Robots that are fully autonomous are intended to carry out intricate building tasks without the need for human assistance. One of the best illustrations of a completely autonomous robot is Hilti’s Jailbot. Jailbot can drill holes in accordance with a preset pattern for eletrical installations. Its built-in sensors and safety features make sure that it operates within predetermined bounds, thus reducing the need for human labour and the risks associated with hand drilling.
The ATL track loader from Built Robotics is an additional illustration. With its enhanced GPS and LiDAR sensors, the ATL operates autonomously. Excavation for single-family and townhouse residences
is one of the light construction tasks for which this autonomous vehicle is intended.
Tele-operated robots: Tele-operated robots are machines that can be controlled remotely and are intended to carry out different duties on building sites. Among the construction equipment in this category is Advanced Construction Robotics’ TyBot. TyBot ties rebar repetitively while being watched over and managed by a human operator at a safe distance, increasing both workplace safety and productivity.
Types of tasks performed by construction robots
Bricklaying:
Construction robots can place bricks on structural elements such as walls and facades. They arrange every brick according to the blueprint, minimising human error and guaranteeing consistent quality.
Demolition: These robots are specialised devices made to destroy structures faster than people could. They can expedite the demolition process by breaking through concrete, cutting through steel, removing flooring, and removing other structural components.
Excavation: The process of extracting dirt and other materials from construction sites can be improved and automated with the help of construction robots. With a variety of arms and tools at their disposal, they can safely carry out jobs like transferring soil or excavating trenches.
Welding: Typically, welding robots have articulated arms with multidirectional movement. This enables them to execute intricate welds and reach difficultto-reach places. Depending on the tasks particular requirements, these robots are outfitted with specialised welding instruments such as MIG (metal inert gas), TIG (tungsten inert gas), and spot welding equipment.
Material handling: Material handling robots lessen the physical strain on human
construction workers by lifting, moving, and transporting heavy construction equipment and materials like steel beams and concrete blocks.
Inspection and monitoring: Robots for inspection and monitoring may closely investigate buildings, bridges, and other infrastructure using sophisticated sensors and high-resolution cameras. This makes it possible to conduct more thorough inspections that could be risky or challenging for human inspectors. By collecting photographs and data over time, these robots can monitor the advancement of building projects and give stakeholders and project managers important insights into whether the project is on track and within budget.
3D printing: Robots that use 3D printing can quickly construct complex structures
and forms by depositing layers of materials, like plastic or concrete, according to computer designs. This technology allows components to be produced quickly and with less waste in materials and building time.
Construction robots must be equipped with artificial intelligence to integrate machine learning models and sophisticated algorithms into their systems. Thanks to these cutting-edge technologies, the robots can now analyse and learn from vast volumes of data collected from sources, including sensors, cameras, and previous operations. The robots can identify trends in tasks and carry out the most effective ways to finish them by processing data.
For example, the Coloradobased business Canvas has created an AI-assisted robot
It is unlikely that the construction sector will experience a large loss of human jobs despite the predicted breakthroughs and dire forecasts of massive job losses due to the emergence of construction robotics.
for drywall finishing. This four-wheeled robot, which is about the size of a laundry machine, uses LiDAR to scan and comprehend the space it is in.
The robot’s computer maps its surroundings, then commands an arm to smooth surfaces and apply drywall compound layers.
As technology develops further, we might start seeing increasingly sophisticated AI and machine learning incorporated into construction robots, allowing these devices to eventually work better and more efficiently.
It is unlikely that the construction sector will experience a large loss of human jobs despite the predicted breakthroughs and dire forecasts of massive job losses due to the emergence of construction robotics.
Rather than causing stress to human workers, AI and robotics are more likely to act as a support system that frees them up to concentrate on more difficult jobs.
Understanding accessible design
When talking about accessibility in the building industry, people often overlook the necessity of universal design.
Complicating the matter, the terms ‘universal design’ and ‘accessible design’ are often conflated. Universal design incorporates the principle that the building environment is usable by all people, while accessible design meets the environmental needs of the functional limitations of people with disabilities.
The tricky part of this is people with different disabilities have different needs. This seems like a no-brainer, but this is why universal design is considered the gold standard—from there, people with disabilities can tailor universally designed homes to fit their needs.
The problem is we don’t have enough homes being built to universal design principles. CCS Disability Action national policy analyst Phoebe Eden-Mann has said that,
“As we have an ageing disability and ageing population, our disability rates are going to skyrocket, and they are going to skyrocket quickly.
“And that means that we are going to need a lot more accessible homes than we have currently because the majority of the housing stock in New Zealand is inaccessible.”
Statistics NZ has broken down the numbers—in 2005, New Zealand had half a million people over age 65. By 2051, 1.33 million are projected to be part of the same age group. This number doesn’t even include people under 65 living with disabilities.
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“My argument is that not only do we need to be meeting the needs of disabled people, but we also need to be futureproofing because we have no idea what is going to happen tomorrow.
“If we at least start building homes to a universal design standard where a lot of disabled people can use it, we’ll be set,” Phoebe said.
As the old saying goes, an ounce of prevention is also worth a pound of cure, and this also rings true when it comes to renovating our housing stock to meet the needs of our ageing population.
“It’s quite difficult to retrofit a lot of the old homes, and it’s really expensive. If we build an accessible house or a universal design house from the start, it is an additional cost, but it’s not a huge amount.
Statistics NZ has broken down the numbers—in 2005, New Zealand had half a million people over age 65. By 2051, 1.33 million are projected to be part of the same age group. This number doesn’t even include people under 65 living with disabilities.
“Retrofitting a house to make it more accessible is ten times more expensive than if they would’ve done it from the start. If we do it from the start, then we are saving a phenomenal amount of money.”
“Ideally, we would love all homes to just have a 5-star rating off the bat. That 5-star rating means that it’s the highest accessibility that it can be and that it means virtually all of the requirements are already in place for it to be usable, adaptable and safe.”
One way to actually meet the needs of disabled people is bringing them on board during the consultation and design process – currently, one of two things happens:
1. Disabled people aren’t consulted about accessibility measures and are expected to be grateful it’s being talked about at all.
2. Disabled people are consulted in the process, but most of their input is disregarded as it becomes ‘too expensive’.
Disabled people must be given a fair shot to enter the construction industry.
Not all disabled people are going to be able to meet the physical demands of the job, and not all disabled people will be interested, Phoebe says. However, blanket stereotyping of people’s abilities based on a disability status does much more harm.
Lifemark assesses homes by focusing on suitability in the following areas:
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Blue-green roofs Pioneering the future of urban sustainability
By Mike Jerome Infante and Paige O’Brien
The imperative for sustainable urban development is more pressing than ever as cities grapple with increasing urbanisation and the impacts of climate change.
In response, innovative green infrastructures are being developed to address the complex challenges that urban areas present. Bluegreen roofs stand out as a promising solution, seamlessly blending sustainability, resilience, creativity, and aesthetic appeal into urban environments.
Blue-green roofs are an evolution of traditional green roofs, integrating advanced water management techniques with vegetative systems. While green roofs focus primarily on incorporating plants into building structures for
passive rainwater collection, blue-green roofs take a step further. They actively gather, store, and treat runoff, providing a thorough approach to irrigation and rainwater harvesting. This integration allows blue-green roofs to utilise precipitation more effectively, promoting environmental sustainability.
The most significant feature that sets blue-green roofs apart from traditional green roofs is their enhanced stormwater management capabilities. Traditional green roofs mainly focus on vegetation and passive
water collection. In contrast, blue-green roofs include active water management systems such as collection, storage, appropriate drainage, and treatment methods. These systems maximise the potential for rainwater reuse while minimising the risks of contamination and flooding.
Blue-green roofs often support a wider variety of plant species, particularly those with deep root systems adept at absorbing and filtering stormwater. This combination of green infrastructure benefits and advanced water management techniques offers a holistic solution to urban environmental challenges. While both green and bluegreen roofs contribute to
Blue-green roofs often support a wider variety of plant species, particularly those with deep root systems adept at absorbing and filtering stormwater. This combination of green infrastructure benefits and advanced water management techniques offers a holistic solution to urban environmental challenges. sustainability, the latter provides a more extensive and effective strategy for enhancing urban resilience, environmental stewardship, and climate change adaptation.
The environmental impacts of blue-green roofs are manifold. They help mitigate urban heat islands, which are exacerbated by the prevalence of concrete and asphalt in cities. By fostering ecosystems that support diverse plant and insect species, blue-green roofs enhance biodiversity and facilitate carbon dioxide absorption. Also, the vegetative layer on these roofs acts as an insulator for buildings, resulting in energy savings, improved indoor comfort, and better occupant health.
Amsterdam has emerged as a frontrunner in implementing blue-green roofs. Known for its innovative approaches to sustainable urban development, the city is transforming its rooftops at the forefront of these efforts, aiming to create a greener, more livable city while enhancing its resilience to pollution and climate change. By integrating blue-green roofs across the city, Amsterdam is setting a precedent for other urban areas to follow.
Beyond environmental benefits, blue-green roofs offer significant economic and aesthetic advantages. They contribute to long-term cost savings by reducing the strain on municipal infrastructure and lowering building owners’ energy
expenses. The aesthetic value of blue-green roofs can also enhance architectural designs and improve the overall urban landscape, introducing visually pleasing green spaces into otherwise concretedominated environments.
Despite the growing interest in blue-green roofs, widespread adoption faces challenges such as upfront costs, regulatory barriers, and technical difficulties. However, the benefits far outweigh these challenges, as evidenced by pioneering cities like Amsterdam. Continued innovation, collaboration, and investment are essential to overcoming these hurdles and realising the full potential of blue-green roofs.
The future of blue-green roofs is bright. With sustained
They contribute to long-term cost savings by reducing the strain on municipal infrastructure and lowering building owners’ energy expenses.
efforts, they have the potential to revolutionise urban landscapes and sustainable architecture. These roofs can help cities adapt to challenges posed by climate change, air pollution, flooding, rising temperatures, water quality issues, extreme weather, and environmental degradation.
By offering a holistic approach to environmental sustainability, resilience, and aesthetic enhancement, blue-green roofs represent a transformative shift in urban design.
Compact efficiency PC25MR-5 mini excavator
Komatsu’s new PC25MR-5 mini excavator delivers on size and performance.
Carl Grundy, national utility sales manager, Utility from Komatsu says the model fills a gap in the market for Komatsu and is sure to be a popular addition to many of their fleets.
“The PC25MR-5 is two-inches wider than the PC18MR-5, but can still be still towed on a trailer, rather than having to invest in a truck to move it from site to site. It’s also still compact enough at 1.5m wide to suit the tight worksites you find on residential builds or city projects.
“This model will be the perfect addition for landscapers or contractors
doing demolition or digging work. It’s a user-friendly model, that still delivers on performance.” Carl says.
The PC25MR-5 comes with Komatsu’s CLSS (ClosedCentre Load Sensing System) which guarantees power, speed and perfect control for all machine movements, including simultaneous ones.
“The combination of the variable displacement pump and CLSS allows operators to perform all required movements with maximum efficiency, regardless of the load or RPM. The CLSS perfectly complements the hydraulic servocontrols,
which are, by far, the easiest to use compared to previous models, and allow for extremely precise manoeuvres,” Carl says.
This model will be the perfect addition for landscapers or contractors doing demolition or digging work. It’s a user-friendly model, that still delivers on performance.
Maintenance is also made easy on the new PC25MR-5, with a fully opening engine door and side cover making service access simple.
The PC25MR-5 comes standard with Komtrax™, Komatsu’s advanced wireless monitoring system. “With Komtrax, owners and operators can effortlessly track machine performance, stay informed about equipment status, and optimise efficiency, ultimately saving time and increasing profitability.
“With our extensive Komatsu branch network, operators will have the service and support they need to keep the PC25MR-5 working efficiently, no matter where your jobsite may be located.”
Learn more about Komatsu Excavators at Komatsu.co.nz
15 April - 30 September, with delivery by 31 October 2024
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According to the latest NZIER Quarterly Survey of Business Opinion (QSBO), a net 35 percent of firms expect the general economic outlook to deteriorate over the coming months.
The NZIER report points to a further decline in business confidence in the June quarter as higher interest rates continue to dampen demand across the nation’s Zealand economy.
The report says the construction sector is the most downbeat, with a net 65 percent of building firms surveyed anticipating a worse economic future. “With weak demand across housing, commercial, and government construction work, prices in the construction sector remain under pressure while costs remain intense,” the NZIER reported in a statement.
“The manufacturing sector was also very downbeat, with a net 63 percent of manufacturers expecting a deterioration in general economic conditions over the coming months.
“Domestic demand for the sector remains weak, largely due to the weaker construction demand.“
This continued to reduce the pricing power of manufacturers, which has driven further deterioration in profitability for the manufacturing sector. “This environment of higher interest rates and heightened uncertainty about the outlook
has made businesses much more cautious about hiring and investment.
“A net 35 percent of firms plan to reduce investment in buildings, while a net 27 percent plan to reduce investment in plant and machinery over the coming year. Many firms are holding off on investment until they feel more certain about when demand will recover.”
Meanwhile, a quarter of firms reported they had reduced staff numbers in the June quarter due to weak demand. “This softer labour demand and the increased labour supply since
A
net 35 percent of firms plan to reduce investment in buildings, while a net 27 percent plan to reduce investment in plant and machinery over the coming year. Many firms are holding off on investment until they feel more certain about when demand will recover.”
the reopening of international borders continued to drive the easing in labour shortages. It is now easier for firms to find both skilled and unskilled labour.”
Weak demand has been the leading factor driving the reduction in capacity pressures in the national economy, and weak demand is increasingly becoming the key concern for businesses.
Over 60 percent of firms report a lack of sales as the primary constraint on their business, a significant increase from the 42 percent of firms that reported that as the primary constraint on their business a year ago.
The NZIER has conducted its QSBO since 1961. It is New Zealand’s longest-running business opinion survey.
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Addressing productivity challenges facing the sector
A report highlighting major and widespread productivity challenges facing the construction sector has underlined the importance 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 has 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, contributing $99 billion in sales in 2023 and indirectly supporting 20 percent of all jobs in New Zealand.
“However, the report paints a grim picture of the sector, finding that productivity levels have remained the same since 1985 – an extraordinary statistic considering how much technology has advanced since that time.
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“Another key challenge is the increasingly slow build process, with the time taken to build a home increasing by 50 percent since 2013, 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 particularly confronting that renters now spend nearly 40 percent of their income on housing.
“This is reflected in the report, which asked New Zealanders to describe the construction sector with one word, with the most common response being ‘expensive’.
“The findings of the report are exactly why the Government is focused on streamlining the
Building and Construction Minister Chris Penk says, The New Zealand Chinese Building Industry Association has released a report investigating the building and construction sector and outlining the opportunities and challenges of one of New Zealand’s most important sectors.
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 living in a stable home and gain all the associated social and health benefits.
“As part of our ambitious agenda to reform the building and construction sector, this year the government has
already progressed a raft of changes to make it easier to build, including:
• Removing barriers for overseas building products to be used in New Zealand
• 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
• Putting the spotlight on building consent delays by requiring councils to publish processing times every quarter
• Reviewing the earthquakeprone building system to better balance safety with cost and risk.
“I thank the New Zealand Chinese Building Industry Association for this insightful report into the building and construction sector that underlines the importance of making it easier and more affordable to build so Kiwis can live in the quality affordable homes they deserve,” Chris Penk says.
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Digital dilemmas
How to tell it’s time to move your project management toolbox to the cloud
By Frank Feustel, MYOB Head of Product
Utilising the right technology and software to run a construction business is just as important to your success as having the right hardware tools to complete a job.
Although continuing to use traditional systems and manual processes – like spreadsheets or paperbased timesheets – might seem easier and quicker because they’re familiar, as a business grows, there often comes a point where the processes that once helped with business management become too time-heavy.
Ultimately, this can lead to reduced productivity and reduced capacity to scale.
So, how do you know if it’s time to change the management tools you use for your business? Here are five signs that you should consider making the move to a cloudbased platform:
1. You’re currently unable to predict potential issues within your business
Project oversight is key to staying on time and budget. Without real-time visibility, there is a risk of catching issues too late and struggling to give clients timely updates.
This can often result in extra expenses and delays that
Although continuing to use traditional systems and manual processes – like spreadsheets or paper-based timesheets – might seem easier and quicker because they’re familiar, as a business grows, there often comes a point where the processes that once helped with business management become too time-heavy.
Ultimately, this can lead to reduced productivity and reduced capacity to scale.
eat into both your project profitability and productivity.
When you have access to real-time job tracking through the cloud, you’ll have insight that makes you better prepared to forecast potential obstacles, plan accordingly, and ensure that your team has everything they need to finish the job on schedule without added pressure and cost.
2. Your project estimates tend to be inaccurate
Collating and analysing information from multiple systems is not only time–consuming but also leaves room for human error.
If building costs regularly exceed estimates, they’ve likely been based on out-of-date or inaccurate reporting—a sure sign that you need to upgrade to an alternative business management solution.
3. Your teams are working in silos
If your teams are experiencing a divide between on-site and office workers, it’s almost always because they’re using different or disconnected systems.
This means they see information at different times and in different formats, and neither group has a full understanding of how their work affects the other. Even in companies with a strong team culture, the impracticalities of disparate systems can hold you back.
A cloud platform for construction solves all these issues. It provides full visibility of business operations and project management information, which is regularly updated in one integrated platform.
4. More time is spent on paperwork than productive tasks
Relying on spreadsheets or a range of individual, disconnected systems, often equates to wasting valuable time on manual processes –putting burdens on your team and limiting the time they spend on productive tasks.
This can also mean that site managers need to make trips to the office to catch up on paperwork, because they don’t have mobile or onsite access to office systems.
You never get a complete, up-to-date view of project details If you are always left guessing or relying on manually assembled reports that are generally out of date by the time you receive them, it’s time to integrate a cloud project management platform into your business.
Frank Feustel MYOB Head of Product
WATER BLASTING, GIB STOPPING, INTERIOR/EXTERIOR, RENOVATIONS/NEW BUILDS, WALLPAPER HANGING.
From Left to Right: Ali Taylor, Caitlin Hattrill, Tyler Hooks. Absent; Sam Nicholson
WorkSafe calls for the manufacturing sector to address safety concerns
WorkSafe is pleading with manufacturers to raise safety requirements, emphasising that far too any employees are losing fingers in industrial machinery mishaps.
Since the middle of March this year, manufacturing enterprises in New Zealand have been subject to fines and damages of over half a million dollars. WorkSafe identified three instances in the manufacturing industry where employers disregarded fundamental machine safety regulations, leading to finger amputations.
“All three cases are from the manufacturing sector, which has a persistent problem with machine safeguarding and is one of the country’s high-risk industries,” the WorkSafe principal inspector, Mark Donaghue, said in a statement.
Following an accident in January 2022 that resulted in the amputation of two fingers and the degloving of a
Since the middle of March this year, manufacturing enterprises in New Zealand have been subject to fines and damages of over half a million dollars. WorkSafe identified three instances in the manufacturing industry where employers disregarded fundamental machine safety regulations, leading to finger amputations.
All three cases are from the manufacturing sector, which has a persistent problem with machine safeguarding and is one of the country’s high-risk industries,” the WorkSafe principal inspector.
third, Thompson Engineering, located in Timaru, was fined $247,500 and required to pay compensation of $35,00. A punch and shear machine that was a stand-in for primary equipment when it broke down was the cause of the accident.
In another instance, an Anglo Engineering worker in Auckland suffered a punch and shaping press accident in March of 2022 that resulted in the partial amputation of three fingers. The business was fined $200,000 and mandated to make $35,337 in reparations payments.
Furthermore, Flexicon Plastics in Auckland was fined $74,392 and required to reimburse $33,000 in damages following an August 2022 incident in which one of the employees severed two fingers and degloved a third.
WorkSafe claims that when the employee was cleaning the machine, the interlock on the equipment malfunctioned, and the power switch was unintentionally turned on.
Donaghue voiced his shock at how frequently workers are suffering catastrophic injuries, claiming that there
is a way to avoid these workplace accidents.
He says “These sorts of incidents are avoidable. Workers should not be suffering harm like this in 2024, and businesses have no excuse. WorkSafe is notified of machine guarding incidents from across the country every week and is regularly prohibiting dangerous machinery as part of its proactive and targeted assessments. WorkSafe has a role to influence businesses to make sure they keep people healthy and safe – that’s why we’re speaking out on this issue.
“If you are unsure whether your safeguarding is up to scratch, engage a qualified expert as soon as possible.”
The Machinery Act, which was put into effect in New Zealand in 1950, protected the effectiveness of machinery in workplaces. However, data indicates that, even after over 70 years, workplaces are still not complying, which leads to several worker injuries from potentially dangerous machinery.
The vanishing Kiwi dream
By Jamie Quinn
The dream of homeownership, once an essential part of New Zealand’s identity, is slipping out of reach for many Kiwis.
For decades, the goal to own a home was deeply ingrained in the country’s spirit, symbolising community stability.
However, the reality of homeownership in New Zealand is degrading rapidly, with fewer than 60 percent of households now living in their own homes, compared to almost 75 percent in 1991. If current trends continue, national homeownership is projected to drop below 50 percent by 2048, a shift that will have serious implications for the social and economic foundation of the country.
For many New Zealanders, owning a home represents one of the most significant milestones in life. It is often the most valuable asset a person will own, offering financial security and a legacy for future generations.
Beyond the tangible benefits, homeownership provides emotional security for families and a sense of belonging to a community.
The financial benefits of homeownership are welldocumented. Home equity is a significant part of family wealth, contributing to financial stability and offering a potential return on investment. The process of saving for a home deposit encourages better financial habits and discipline, which can lead to long-term financial stability. Homeownership can also have positive effects on job market participation, as the security it provides may incentivise individuals to enter the workforce. Additionally, owning a home can offer financial security in retirement, either through equity gain or options like downsizing to free up equity or using reverse
For many New Zealanders, owning a home represents one of the most significant milestones in life. It is often the most valuable asset a person will own, offering financial security and a legacy for future generations. Beyond the tangible benefits, homeownership provides emotional security for families and a sense of belonging to a community.
mortgages. For small business owners, homeownership can provide the asset security needed to borrow against to build a business.
The social benefits of homeownership are equally important. Studies have shown that homeownership is associated with improved mental and physical wellbeing, leading to greater life satisfaction and better access to healthcare services. Owning a home can contribute to family stability and the overall wellbeing of children. Homeowners are also more likely to be actively engaged in local activities, which contributes to community development and social connection. These benefits collectively improve the quality of life for individuals and families while also strengthening communities.
However, declining affordability is making these benefits increasingly out of reach. New Zealand now has one of the highest housing cost-todisposable income ratios in the OECD, a situation that is the result of decades of systemic issues. Restrictive land supply policies, the deregulation of
the financial system, a decrease in the state’s social housing provision, and the declining use of land protection controls have all contributed to the current housing crisis. In the 1990s, efforts to control inflation led to interest rates dipping, which allowed people to borrow more, driving up house prices as property became a favoured investment tool. This, combined with chronic supply constraints, tax-free capital gains, and an increasing population, has led to a distorted housing market where house prices have increased more than any other OECD country over the past 30 years.
The consequences of this distorted market are grim. As of February 2024, the median house price in New Zealand was 6.8 times the median income, compared to 5.4 times in 2004 and roughly 2.3 times in 1984. Between 1998 and 2022, house price growth, as measured by the National House Price Index (HPI), rose dramatically faster than incomes. During the same period, the national median rent increased 53 percent faster than the average income but still grew more slowly than the
median house price. The HPI increased 40 percent faster than the national median rent and over 230 percent faster than the average income between 1994 and 2023.
This rapid increase in housing costs has made it increasingly difficult for New Zealanders to afford a home. Nearly half of all renters now spend more than 30 percent of their disposable income on rent, leaving little room to save for a home deposit. The 2018 Census estimates that more than two-thirds of New Zealand tenants were in periodic or rolling tenancies, equating to more than 400,000 households facing long-term housing uncertainty and insecurity. There is a strong correlation between housing affordability, population growth, net migration, and inflexible supply, with some indicators suggesting that a ten percent increase in local area population can be associated with a 4-6.5 percent increase in house prices.
These imbalances in housing affordability support a wealth divide that worsens differences
The outlook is even bleaker for Māori and Pacific people, who have lower homeownership rates than the national average. As of 2023, the homeownership rate for Māori was 47 percent, and for Pacific people, it was just 35 percent. These groups are extremely affected by the housing crisis, further enforcing social and economic imbalances.
in health, education, and overall wellbeing outcomes. As fewer New Zealanders are able to own homes, the gap between those with assets and those without continues to widen, creating a society where the asset-poor are growing much faster than the asset-rich. This division is not just a financial issue; it is also a significant contributor to social inequality and poverty.
The outlook is even bleaker for Māori and Pacific people, who have lower homeownership rates than the national average. As of 2023, the homeownership rate for Māori was 47 percent, and for Pacific people, it was just 35 percent. These groups are extremely affected by the
housing crisis, further enforcing social and economic imbalances.
Historically, New Zealand had a strong tradition of homeownership and secure social housing, supported by bipartisan government policies that ensured people could get into houses and pay for them over their lifetime. However, in recent decades, this support has been taken away. State houses, once a stable option for those who could not afford to buy, are now only available as long as someone else in greater need does not come along, a need that is always present. The private rental market, which was once negligible, has grown but remains insufficient, leading
to high prices and increased demand for state housing, which itself is in short supply.
The collapse of homeownership into private rentals, and from there into state housing and emergency housing, highlights the urgent need for solutions to stabilise homeownership and reverse the current trend. Potential solutions include rent-to-buy schemes and shared equity programs that can help more New Zealanders achieve the dream of homeownership.
New Zealand is facing a homeownership crisis that threatens to debilitate the country’s social and economic stability. Without intervention, the dream of homeownership will become increasingly unattainable for future generations, worsening social inequality and poverty. Policymakers must work together to develop strategies that will make homeownership a realistic goal for all Kiwis once again.
The Cromwell community has enjoyed the benefits of Judy’s exemplary care, service and dedication for nearly two decades. Having first joined the Harcourts team in an administrative role in 1998, Judy moved into consultancy in 2005 and has taken pleasure in guiding buyers and sellers towards their dreams ever since.
Judy has been an integral part of the Cromwell community for nearly two decades. She provides exemplary care, service, and dedication. Starting at Harcourts in 1998, she transitioned into consultancy in 2005. She helps buyers and sellers achieve their dreams. Known for her reliability, supportiveness, and hard work, Judy is committed to the well-being of her clients.
Her impressive track record and personal integrity have earned her the trust of many repeat clients. Judy's thorough understanding of her role in
real estate ensures a smooth sales process, while her professionalism and expertise represent the Harcourts brand well. She is proud to be part of the successful team at Harcourts Cromwell, dedicated to using the best technology and teamwork to make every client a winner. Judy's love for the Cromwell lifestyle, coupled with her farming background, adds to her ability to connect with clients and understand their needs. With numerous national achievements, Judy's focus remains on meeting the real estate requirements of her clients.
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SOUTHLAND
Business Owner / Sales Consultant
Boasting an extensive background in advertising, marketing, and promotion, I possess the expertise required to effectively showcase properties.
My approach involves collaborating with skilled local professionals to craft targeted marketing strategies that highlight the unique value of your most significant asset. By utilizing proven, multifaceted, and multiplatform methods, I ensure your property stands out in the current market. My recent acquisition of the Invercargill franchise underlines my commitment to expanding Tall Poppy’s presence, emphasizing unparalleled customer service and results-driven performance. With a passion and drive that are unmatched, I’m eager to discuss how we can achieve the best possible outcome for your property.
m 027 480 9492 k monica.cairns@tallpoppy.co.nz
E Monica Cairns- Tall Poppy Real Estate
SEP innovative product design and fabrication
Located in Rukuhia next to Hamilton Airport, SEP design and manufacture quality products from sheet metal and stainless-steel wire including components, accessories, and complete machines for industries such as the food and dairy, power utilities, and health sectors.
Integrating our own innovative designs, many of our products greatly improve efficiency, safety, and connectivity. We have the capacity to produce custom solutions and are ideally set up to fabricate either short or long-production runs, oneoffs, or prototypes.
Our workshop is fully equipped with a three metre wide brake press, 2.4 metre guillotine, and
water jet cutter allowing intricate cutting and finishing to within 0.1mm.
Our onsite electricians allow SEP staff to install custom fit-outs for power utility companies, create custom enclosed control panels and isolators meeting all hygiene standards, and more. Installing mainly ABB componentry with their reputation for quality, reliable and durable products, SEP is also a supplier of ABB products New Zealand-wide.
With clear communications, a can-do attitude, transparent quoting, and real service, SEP is a quiet achiever. To talk through your upcoming projects, call Aub Hart on 0274 778 445 or visit our website at www.sep.co.nz
Did you know that New Zealand has the highest rate of melanoma in the world? Every day, around 7 New Zealanders are diagnosed with melanoma - it’s the most serious form of skin cancer and it can quickly become deadly.1,2
That’s why MoleMap’s proven skin-mapping system is designed to detect skin cancers such as melanoma early – when it’s most treatable.3
We check.
And double-check.
With MoleMap you get two sets of expert eyes examining any moles of concern: a trained Melanographer and an experienced specialist Dermatologist.
Fewer scars. Fewer scares.
Because MoleMap can more accurately identify melanoma, there is less need to surgically remove benign (harmless) moles.1
Early melanoma detection offers a up to 95% chance of survival within 5 years. That’s why it’s always worth checking.
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Early detection makes a difference. 0800 665 362 |
A team of highly skilled professionals, committed to delivering traffic management solutions tailored to meet the specific needs of our clients.
With years of experience in the industry, our reputation for exceptional customer service, attention to detail, and commitment to safety is outstanding.
