Building up: Reconstruction work in the Canterbury region has increased revenue

The Institutional Building Construction industry constructs buildings that New Zealanders use to learn, work, heal, socialise, exercise, worship and carry out justice. These buildings are mainly constructed by private contractors and funded by the public sector. The industry has grown at an accelerated rate over the past five years as firms have reconstructed buildings that were damaged or destroyed by the 2010-11 earthquakes in the Canterbury region.Industry revenue is expected to increase at an annualised 7.2% over the five years through 2018-19, to reach $2.9 billion. However, industry revenue is projected to contract by a marginal 0.3%...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 14-19
7.2%
Forecast Growth 19-24
Profit
Employment
4,400
Businesses
608
Market Share of Companies

Industry Threats & Opportunities

  • Population growth and reconstruction work in the Canterbury region have boosted demand for the industry
  • Industry profit margins have widened due to unprecedented demand conditions
  • Governments have increasingly entered into public-private partnership (PPP) arrangements
  • Industry Report - Industry Products Chapter

    The industry constructs institutional buildings for public and private sector clients (mainly not-for-profit organisations). Industry operators take responsibility for completing construction of a building, typically using subcontractors to complete discrete stages, and undertaking alterations, additions and repairs to existing buildings. The industry has derived substantial stimulus from demand for repairing or replacing institutional buildings damaged by the 2010-11 Canterbury earthquakes.Educational buildingsConstruction of educational buildings represents the largest category of industry activity. The industry is projected to derive 44.8% of its revenue from this segment in 2018-19. Thi...purchase to read more.

    Additional Insights for the Institutional Building Construction Industry

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

  • Ability to compete on tender
  • Having links with suppliers
  • Ability to negotiate successfully with regulator
  • IBISWorld analysts also discuss how external factors such as Capital expenditure by the public sector and residential construction capital expenditure in the Institutional Building Construction industry impact industry performance..

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    What's in this report

    What is the Institutional Building Construction in New Zealand Industry?

    Companies in the industry construct institutional buildings, such as hospitals, schools, museums, law courts, prisons and places of religious worship. These institutions are generally operated on a not-for-profit basis. The industry also includes firms that carry out alterations, additions, renovations or general repairs for institutional buildings.

    Industry Products
  • Educational buildings
  • Health buildings
  • Social, cultural and religious buildings
  • Other accommodation buildings
  • Industry Activities
  • Alterations and additions to institutional buildings
  • Defence building construction
  • Education building construction
  • Hospital and other healthcare building construction
  • Law court building construction
  • Museum and art gallery construction
  • Nursing home and respite (palliative) care building construction
  • Prison, detention and correction centre construction
  • Religious building construction
  • Other institutional business premise construction
  • 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 public sector
  • residential construction capital expenditure
  • Capital expenditure on construction
  • Population
  • Public funding for primary and secondary education
  • Public funding for tertiary education
  • Public health expenditure

  • Current Performance
  • Profitability surges
  • Factors driving demand
  • Industry developments
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit tightens
  • Factors driving demand
  • Table: Institutional Building Construction Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Education and Training in New Zealand
  • Hospitals in New Zealand
  • Art Galleries and Museum Operation in New Zealand
  • Performing Arts Operation in New Zealand
  • Correctional and Detention Services in New Zealand
  • Aged Care Residential Services 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
  • Timber Wholesaling in New Zealand

  • Products & Services
  • Educational buildings
  • Health buildings
  • Social, cultural and religious buildings
  • Other accommodation buildings
  • Chart: Institutional Building Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Public education organisations
  • Other public organisations
  • Public healthcare organisations
  • Other private institutional organisations
  • Private healthcare organisations
  • Private education organisations
  • Chart: Major Market Segmentation for the Institutional 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 Institutional Building Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Institutional Building Construction Industry

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Institutional 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 Institutional 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
  • Building consents (permits) are granted by councils before construction can proceed. Consent is required to ensure compliance with the Building Code.
  • Prefabricated
  • The manufacture of component parts or sections of a building in a factory for later transport and on-site assembly.
  • Public-Private-Partnership (Ppp)
  • Public and private sector cooperation to deliver a public service or facility. Often involving private funding, construction and maintenance of buildings, and infrastructure for the public sector.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Institutional Building Construction in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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
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    This report on Institutional 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 Institutional 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 Institutional 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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