there is over $100 billion construction work (covering both building and infrastructure work) to be done in New Zealand alone over the next 30 years. Demand in many countries beyond New Zealand is even bigger. There will be a massive growth in the construction industry. The construction industry is a significant contributor to any country’s economy. It is often used as a catalyst industry to spur further economic growth because it has a ‘multiplier’ or knock-on effect on the rest of the economy.
In Auckland alone there have been suggestions that with the estimated population growth of close to a further million people, another 300,000 new homes need to be built. Assuming each new house costs $300,000.00 to build, that translates to $90 billion worth of work.
We then have to add to that the costs of the new convention Centre at Sky City, the rail links proposed for Auckland, a second harbor crossing (tunnel or bridge), expansion of the dedicated northern bus way, additional commercial projects (shopping and offices) to cater for the additional population, additional recreational projects including the new pool at North Harbor stadium and the AUT-Millennium Institute of Sports and Health expansions including another Olympic-size pool, the need to work out costs of construction for insurance valuation purposes, the need to strengthen buildings that do not comply with minimum earthquake requirements, and the extensive rectification of leaky buildings around Auckland.
Then, going beyond Auckland, we need to add the costs of construction work projected to grow in Hamilton, Wellington post-earthquake repairs, and the major Christchurch rebuild