00 · EXECUTIVE SUMMARY
The industry is adjusting, but long-term demand remains strong.
Construction remains one of New Zealand’s largest economic sectors. The short-term cycle is placing firms under pressure, but long-term demand for housing, infrastructure and capability has not disappeared.
01 · INTRODUCTION
Recovery needs the right risk environment—and firms that are ready.
The 2026 report focuses on two structural questions: how firms can realise greater long-term value from apprenticeship training, and how the sector can achieve better coordination across a complex and fragmented policy system.
Make training pay
Move capable trainees into productive work sooner and retain them long enough to realise the investment.
Make policy coherent
Improve consistency and predictability, supported by a more formal role for industry monitoring and feedback.
REPORT CHAPTERS
Sector size and context
The sector generates about $92 billion in revenue, with roughly $64 billion paid to suppliers. Real activity is around 15% below its 2024 peak, yet enterprise numbers remain resilient.
People in construction
Around 75,000 workers left the sector in the year to May 2026. Training must translate into chargeable work sooner, while retention is the key lever for firms to realise its value.
Policy certainty and business
Construction is exposed to about 98 policy instruments across seven agencies and 13 policy areas. The report calls for better coordination, predictability and industry participation.
Economic context and forecasts
International events have delayed recovery, but structural housing and infrastructure shortfalls continue to support medium-term demand. Firms need to preserve capability for the next cycle.
Conclusion
People are the binding constraint and productivity is won firm by firm. No individual business can overcome a fragmented policy system on its own.
“The businesses that continue investing in people, productivity, innovation and capability today will be the ones best positioned to succeed tomorrow.”
This page is a structured HTML guide to the report. Refer to the original PDF for the complete methodology, charts, sources, citations and licence information.
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