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Home / Business / Economy / Employment

Bankable future for construction

By Val Leveson
NZ Herald·
16 Oct, 2017 01:30 AM5 mins to read

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When it comes to construction the needs are as 'vast' as the industry. Pic Getty

When it comes to construction the needs are as 'vast' as the industry. Pic Getty

An industry that has been "boom and bust" for quite some time has had a forecast of sustainable growth, making it a good option for secure employment and focus on a long-term career.

More than half of New Zealand's construction industry workers can expect a salary increase of up to 5 per cent in the year ahead, according to the 2017 Hays Construction & NZIOB (New Zealand Institute of Building) Salary Guide.

Jason Walker, Hays managing director for New Zealand, says the industry is "quite vast".

"If you look at residential through to commercial construction and civil construction, which is your roading projects, all three areas require different skill sets to be successful. Even in those sectors it's about finding the right land developers to find the land, who need to negotiate to get it, you need a geotechnical engineer and a lot of others, including those who put the tenders and proposals together and do a lot of the pricing work and estimation.

"Then there's the quantity surveying, and then there's those who have to dig a big hole in the ground and here in Auckland do the excavation work before you can put the foundations in, and then there's all the work that goes on behind the scenes - it's a very large industry."

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Walker says that at least pushing out to 2024, it's going to be sustainable rather than rampant growth in the industry.
"Government will continue its investing in infrastructure. Even residential will be up - we don't have enough houses to accommodate everyone. This will also create opportunity.

"I think why you're seeing the demand being so broad is, because of the election, the political parties make a lot of promises to appeal to the voter with projects around infrastructure and housing.

"Also there's sheer population growth. This isn't just related to more full-time residents in New Zealand, but also the tourist industry and its needs. We haven't expanded our infrastructure for a long period of time. There's talk of increasing access to the airport and getting to beautiful sites."

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He says this growth isn't just in the main centres, it's a regional and provincial story.

"There's so much investment to ensure we're able to accommodate our permanent and temporary population.

"There are also residential projects and the growth of retail projects.

When people are more confident in the market, we see more investment growth."

Walker says, "New Zealand is still a highly desirable place to come to, whether to live or visit, that puts more pressure on our resources. We need to protect those resources and accommodate growth."

So what about those people who are working in the construction industry or who would like to?

"The advice I'd give is that because there will be a lot of opportunities, it's important to really sit down and think of what direction you want to go in," he says.

"Look at how you can take your career forward and what will that mean as far as what sort of work you want to do, what project would you like to work on and what support do you require?"

"Look at what motivates you, what you want, and why you want it and then look at what's available.

"Now that there's so many options - you have choices. For the first time in a long time it will be a sustainable industry over a long time. It's not as boom and bust as it's been."

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Walker suggests those in the industry also look at how you can increase your value in the market - "Work on different projects. Look at your career path - there are stories of trades people becoming project managers and business managers. Look at how you get there - maybe find a mentor who can help you go on the path you want."

He says the industry has been about doing what you can now and thinking short-term -- but this has changed, and it's important to take advantage of that. "It's time to change ways of thinking. Look at who will help you get to where you want to go and how to go ahead on your journey.

"Don't feel you can't talk to your current employer about these things - there may be help in your organisation to help you with training and a leg up, particularly if they don't want to lose you to someone else. Do your research, find your opportunities, be proactive.

"The country does not have enough workers to accommodate the present growth. We're already at our peak in how many residential homes we can build in a year. We just don't have the tradesmen, the project managers or the capability.

"The same is with commercial and roading projects. We do not have enough people training into the industry, we don't have enough people with the skills right now and we don't have enough people coming in offshore.

"That is why there's a salary rise - there's a significant number of projects and competition to employ people. It comes down to supply and demand."

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However, salary increases can't go beyond the profitability of the build for the company.

He says, employers need also to look at the non-financial factors that can keep people engaged and wanting to work for them rather than the competition.

"Salaries are competitive, but what people will be really comparing will be work culture, work conditions, type of people they're working for and with the quality of the project."

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