AECOM recently initiated New Zealand's first Infrastructure Construction Sentiment Survey. Its findings highlight an industry unified in its desire to advance New Zealand's economic development, but with strongly differing view-points on how to get there.
Gathered from regional and central authorities, contractors, consultants, designers and financiers, the findings give fresh insight into the New Zealand infrastructure market. AECOM intends to conduct the survey on an ongoing biannual basis. National workload expectations for the year ahead (see accompanying table) and the full survey can be viewed on the AECOM website at www.aecom.com.
Meanwhile, the principal finding of the inaugural survey reveals a significant mismatch in expected future workload between those tendering and investing in infrastructure.
* On the project delivery side, 83 per cent of respondents expect a rise in their infrastructure workload over the next three years.
* Only 35 per cent on the investment side of the industry expect their infrastructure expenditure to rise.
"While not unexpected in this economic climate it nonetheless sends a clear signal to the Government - as the major investor in infrastructure - that the current construction community is under real duress," said. Kimpton. "There is also a real enthusiasm to resolve the the 'funding issue', make it happen, get the sources of investment, including government, local and international investors excited about our prospects.
"It also reinforces my own growing view - and signals from government - that the days of relying on government to be the major investor in infrastructure are now coming to an end."
Kimpton suggested that the time has come for us as a nation to explore and embrace other investors and investment models.
"We are in a world in which cities are leading their nation's growth, and to make the investments to do that are competing globally for capital.
"Our findings also confirm the observation that funding is definitely slowing down in this area and point to a need for those in New Zealand who are charged with infrastructure development and renewal to:
* Rethink their position on the link between economic growth and performance, and infrastructure as an enabler.
* How the infrastructure required to deliver on that growth aspiration will be funded.
* Market New Zealand as a high-return-on-investment infrastructure destination, for local and international investors alike. "Obviously, funding is critical. The related challenge is further development of our global mindset as a nation - NZ Inc - toward infrastructure investment across New Zealand, not just our two largest cities."
This suggests some priority needs to be given to exploring different investment, ownership and insurance models from what we've seen before, including alternatives to PPPs.
"As I say, we are a small nation competing globally for capital. We have great opportunities. To not make a decision to identify new funding options, is the equivalent of making a 'no' decision. And that's not the Kiwi way," he said.