$6.0bn
$XXX.Xm
15,837
1,437
$X.Xbn
Most of the Heavy Industry and Other Non-Building Construction industry's activity is publicly funded by the Central Government (Te Kawanatanga o Aotearoa) under initiatives like the New Zealand Upgrade Programme (NZUP). The industry delivers privately funded projects for end-users in the telecommunication, energy and transport sectors and is gradually moving towards funding under public-private partnership (PPP) arrangements.
The industry has performed at record levels over the past five years, and industry revenue is expected to climb at an annualised 0.6% to $6.0 billion in 2023-24, despite a contraction of 1.9% in 2023-24. The heightened amount of construction was underpinned by the rollout of the Ultra-Fast Broadband (UFB) network, investment in renewable power plants, upgrades to Transpower's electricity infrastructure and the start-up of the publicly-funded Auckland City Rail Link (CRL). The industry's performance is stabilised by the long-term nature of most public funding programs and the workflow on scheduled maintenance and periodic upgrades to existing infrastructure also stabilises the performance.
The COVID-19 pandemic disrupted the industry's supply chain for construction materials, equipment and skilled labour, which has delayed progress on projects and driven up input prices. The associated project delays and higher input costs have hampered the industry's profit performance. Industry participation and employment have climbed marginally in response to the favourable conditions in core infrastructure markets.
Continued public funding of transport and water infrastructure projects will be crucial for underpinning industry expansion, and contractors will also derive stimulus from private investment in wind farms and large-scale solar plant projects. The projected subdued manufacturing and mining trends will limit private spending on industrial processes and resource infrastructure. Still, some contractors will benefit from greater investment in recreation facilities to meet the stronger tourism conditions. Industry revenue is forecast to climb at an annualised 1.2% over the five years through 2028-29 to $6.3 billion.
Industry revenue has grown at a CAGR of 0.9 % over the past five years, to reach an estimated $6.0bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
Fletcher Building | 538.0 | |
Downer New Zealand Limited | 510.0 | |
McConnell Dowell | 268.0 |
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Industry revenue is measured across several distinct product and services lines, including Water works and irrigation infrastructure construction, Transport infrastructure construction and Energy infrastructure construction. Water works and irrigation infrastructure construction is the largest segment of the Heavy Industry and Other Non-Building Construction in New Zealand.
Water projects keep the industry busy
Industry operators primarily construct engineering projects such as railways, dams, irrigation systems, harbour and river works, and water and gas supply systems. Projects also include sports fields construction; pipeline laying and construction; on-site assembly of boilers, furnaces or heavy electrical machinery from prefabricated components; and general repair of such structures, machinery and equipment. Road and bridge infrastructure construction are excluded from the industry.
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ANZSIC 3109 - Heavy Industry and Other Non-Building Construction in New Zealand
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Favourable trends in the construction of water, power generation and transport infrastructure have underpinned the industry’s expansion. The completion of the Ultra-Fast Broa...
Learn about an industry's products and services, markets and trends in international trade.
Much of the transport infrastructure is funded by public authorities, like New Zealand Transport Agency (Waka Kotahi). The largest project underway, the City Rail Link (CRL),...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
There is a skew in industry enterprises and employment towards the Auckland region, which operates as the industrial, transport and distribution hub for the North Island. Auc...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
New competitors face low barriers to entry. Still, some contractors invest in specialist lifting and boring machinery to help carve out a position in the industry.
Learn about the performance of the top companies in the industry.
The prominent companies have lifted their market share by strategic acquisitions. Fletcher Building Limited expanded through the acquisition of Higgins Group and Downer New Z...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Capital expenditure by the public sector is the principal source of funding for industry services. Public projects include water supply, electricity, telecommunications and r...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Favourable trends in core markets like railway, water treatment and wind farm infrastructure have helped the industry raise profit margins. Solid investment in these markets ...
Including values and annual change:
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The market size of the Heavy Industry and Other Non-Building Construction industry in New Zealand is $6.0bn in 2024.
There are 1,437 businesses in the Heavy Industry and Other Non-Building Construction industry in New Zealand, which has grown at a CAGR of 1.3 % between 2018 and 2023.
The market size of the Heavy Industry and Other Non-Building Construction industry in New Zealand has been growing at a CAGR of 0.9 % between 2018 and 2023.
Over the next five years, the Heavy Industry and Other Non-Building Construction industry in New Zealand is expected to grow.
The biggest companies operating in the Heavy Industry and Other Non-Building Construction market in New Zealand are Fletcher Building, Downer New Zealand Limited and McConnell Dowell
Railway construction and Pipeline construction are part of the Heavy Industry and Other Non-Building Construction industry.
The company holding the most market share in New Zealand is Fletcher Building.
The level of competition is low and increasing in the Heavy Industry and Other Non-Building Construction industry in New Zealand.