Uncertainty in the pipeline of new projects is severely impacting the civil construction workforce, according to results from the 2019 Construction Industry Survey.
The survey, a joint research project commissioned by Teletrac Navman and Civil Contractors New Zealand (CCNZ), is being discussed at CCNZ’s annual conference in Rotorua on Friday, August 2.
The survey garnered responses from business leaders and managers within the construction industry and gauged attitudes on a wide range of issues including current events, staff and skills, and construction technology.
The industry is awaiting spending on three water infrastructure , public transport and road safety improvements to bring financial certainty and stability so it can work towards overcoming New Zealand’s infrastructure deficit.
Over three quarters (77%) of respondents thought the most positive impact on the industry over the next three years would be the development of a clearer pipeline of central and local government work.
Close to one-third (27%) of contractors will be looking to increase their capability in three waters projects (freshwater, stormwater and wastewater), followed by roading and residential (both 18%) and public transport (15%).
Respondents also indicated fewer new staff will be needed in the next 12 months than in the previous two years.
“A clearer, more reliable flow of work and projects brings certainty to both businesses and people in the industry, enabling them to undertake the important work needed in updating and improving New Zealand’s infrastructure,” CCNZ chief executive Peter Silcock says.
“If contractors are unable to see when proposed projects will come to market, this prevents them from investing in their businesses.
“The survey shows contractors are already looking to diversify in the project types they can deliver in anticipation of significant public projects entering the market. A clearer work programme will enable them to better plan their diversification and make the best investment in people, skills, equipment and technology.
“The report suggests the industry understands the need to invest in the workforce, but many businesses are being impacted by lowest price procurement and just don’t have the margins built into their contracts to do so. It is very clear that we need the support of the industry’s largest clients – local and central government – if we are going to invest in our people. That sort of support is vital and will be warmly welcomed by the industry,” Silcock says.
Contractors welcomed the Government’s increased emphasis on training and development of people and other social outcomes through the Construction Accord and new procurement rules.
Over two-thirds (64%) of respondents thought an emphasis on training would have a positive impact over the next three years. The results indicate that a large proportion of training is delivered on-the-job in the civil construction industry, however only 61% felt they had the current resources to train people.
Teletrac Navman construction industry specialist James French says training is “absolutely crucial in the infrastructure sector”.
“These businesses work on large-scale, multi-million-dollar projects that are vital to our standard of living, things like: water, transportation, communication and energy that impact on our everyday lives and public safety.
“A number of gaps in off-job training were highlighted by survey respondents in everything from training in safe chemical handling to specialist drilling equipment. However, the most needed off-job training was in operating specialist equipment and machinery.
“Training needs will likely increase as new technology changes the way machinery and equipment operates, and the types of projects undertaken. A good example is light rail.
“Investments in the workforce will have a long-term positive impact on the industry, but it needs commitment from all corners of the industry: clients, suppliers, contractors, subcontractors, and individual staff,” French says.
Click here to download the full report.
