Built to last: Low interest rates have stimulated demand for industry services

Reconstruction efforts following the earthquakes in Christchurch and the greater Canterbury region in 2010-11 have increased demand for the Commercial and Industrial Building Construction industry over the past five years. Favourable economic conditions, including strong growth in New Zealand's labour force and low prevailing interest rates, have further stimulated demand for industry services over the period. Consequently, industry revenue is expected to grow at an annualised 4.7% over the five years through 2018-19, to reach $5.3 billion. This includes an increase of 8.1% in the current year.The industry constructs non-residential buildings such as offices, retail stores, airport terminals, hotels, factories and storage facilities...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 14-19
4.7%
Forecast Growth 19-24
Profit
Employment
8,175
Businesses
990
Market Share of Companies

Industry Threats & Opportunities

  • Reconstruction efforts following the 2010-11 earthquakes have increased industry demand
  • Employment and profit margins have grown due to the industry’s expansion over the past five years
  • Weaker growth in household consumption will slow the growth of demand for commercial buildings
  • Industry Report - Starting a New Business Chapter

    New competitors entering the industry face limited formal barriers to entry. New entrants must hold a Licensed Building Practitioner license, or employ suitably licensed personnel or subcontractors. Qualified building contractors have easy access to the industry, but may face difficulties establishing a viable foothold against fierce competition from existing players.The principal barrier to new entrants is competition from existing players with an established track record of successfully completed projects, and a network of project developers and other prime contractors. Existing players may have better access to skilled subcontractors and arrangements with major material suppliers. Lar...purchase to read more.

    Additional Insights for the Commercial and Industrial Building Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial and Industrial Building Construction Industry are

  • Having a high prior success rate (including completed prior contracts)
  • Ability to compete on tender
  • Ability to expand and curtail operations rapidly in line with market demand
  • IBISWorld analysts also discuss how external factors such as Capital expenditure by the private sector and Household consumption expenditure in the Commercial and Industrial Building Construction industry impact industry performance..

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    What's in this report

    What is the Commercial and Industrial Building Construction in New Zealand Industry?

    Industry operators construct commercial and industrial non-residential buildings. They also perform alterations, renovations and general repairs of commercial and industrial buildings, and organise and manage construction.

    Industry Products
  • Office and other business premises building construction
  • Retail building construction
  • Factory and industrial building construction
  • Storage building construction
  • Agricultural building construction
  • Accommodation building construction
  • Industry Activities
  • Office building construction
  • Retail building construction
  • Hotel, motel and hostel construction
  • Entertainment building construction
  • Recreation building construction
  • Factory and industrial building construction
  • Prefabricated commercial and industrial building assembly, erection and installation
  • General repair and renovation of commercial and industrial buildings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Capital expenditure by the private sector
  • Household consumption expenditure
  • year bond rate
  • Number of businesses

  • Current Performance
  • Key drivers
  • Key markets
  • Profit and employment
  • Online shopping
  • Chart: Revenue Growth

  • Industry Outlook
  • Key drivers
  • Ongoing structural changes
  • Competition
  • Table: Commercial and Industrial Building Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial and Industrial Building Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Airport Operations in New Zealand
  • Warehousing and Storage Services in New Zealand
  • Commercial Property Operators in New Zealand
  • Hotels and Resorts in New Zealand

  • Key Selling Industries
  • Architectural and Design Services in New Zealand
  • Construction in New Zealand
  • Engineering Consulting in New Zealand
  • Hardware Wholesaling in New Zealand
  • Heavy Machinery and Scaffolding Rental and Hiring in New Zealand

  • Products & Services
  • Office and other business premises building construction
  • Retail building construction
  • Storage building construction
  • Factory and industrial building construction
  • Accommodation building construction
  • Agricultural building construction
  • Chart: Commercial and Industrial Building Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial property developers
  • End users
  • Industrial property developers
  • Chart: Major Market Segmentation for the Commercial and Industrial Building Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Commercial and Industrial Building Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial and Industrial Building Construction Industry

  • Industry Globalization
    Fletcher Building Limited,
  • Table: Fletcher Building Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial and Industrial Building Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Commercial and Industrial Building Construction Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Building Consent
  • Councils grant consents before construction proceeds to ensure compliance with the Building Code.
  • Prefabricated
  • The manufacture of sections or components of a building in a factory for quick on-site assembly.
  • Property Trust
  • A financial vehicle that invests in commercial, industrial or residential property. Investors can buy units in an investment property through the trust.
  • What Our Customers Say

    Why buy this report?

    The Commercial and Industrial Building Construction in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Commercial and Industrial Building Construction in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Commercial and Industrial Building Construction in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Commercial and Industrial Building Construction in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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