Building bridges: The emergence of public-private partnerships has aided revenue growth

The Road and Bridge Construction industry plays an integral role in the New Zealand economy. Industry operators design, construct, maintain and repair the national and local road network, which is vital for commuters and freight transport. Most industry activity is publicly funded through the New Zealand Transport Agency (NZTA), with local authorities providing supplementation. Traditionally, private sector participation in road and bridge funding has been confined to private property and residential subdivisions. However, the first two major privately funded motorway projects are currently under construction. Both projects have been funded with public-private partnership (PPP) contracts.The industry has displayed a heightened level of activity over the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Reconstruction work following the Christchurch earthquakes has supported revenue growth
  • Strong housing investment has driven demand for roadings on new residential subdivisions
  • Demand for roadings on residential subdivisions is forecast to decline over the next five years
  • Industry Report - Industry Analysis Chapter

    The Road and Bridge Construction industry has recorded solid revenue growth over the past five years. This growth has largely been due to public investment in the Roads of National Significance program (RoNS) and the reconstruction of horizontal infrastructure in the aftermath of the 2010 and 2011 Christchurch earthquakes and the 2016 Kaikoura earthquake. Increased construction and maintenance spending by the Central Government and local authorities has supported the industry’s performance. Contractors have also derived some stimulus from robust growth in new housing investment over the past five years, and the subsequent demand for roads and other traffic infrastructure in residential subdivisions.Industry revenue is expected to rise at an annualised 5.1% o...purchase to read more.

    Additional Insights for the Road and Bridge Construction Industry

    IBISWorld has determined the most important Key Success Factors for the Road and Bridge Construction are:

  • Ability to compete on tender
  • Having links with suppliers
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Capital expenditure by the public sector and Capital expenditure by the private sector in the Road and Bridge Construction industry impact industry performance..

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    What's in this report

    What is the Road and Bridge Construction in New Zealand Industry?

    Industry companies construct and repair roads, bridges, aerodrome runways and parking lots. Industry firms can also help organise and manage these activities.

    Industry Products
  • State highway network improvement
  • State highway network maintenance
  • Local road network maintenance
  • Local road network improvement
  • Other construction
  • Industry Activities
  • Aerodrome runway construction
  • Asphalt surfacing
  • Bridge construction (including construction from prefabricated components)
  • Elevated highway construction
  • Overpass construction
  • Parking lot construction (except buildings)
  • Road and bridge repair and maintenance
  • Road construction or sealing
  • 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
  • Capital expenditure by the private sector
  • Demand from house construction
  • year bond rate

  • Current Performance
  • Demand drivers
  • Roads of National Significance (RoNS)
  • Profit growth and competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profit growth
  • RoNS and major projects
  • Participation
  • Table: Road and Bridge Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Road and Bridge Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Airport Operations in New Zealand
  • Container Terminal Operation and Other Transport Services in New Zealand
  • Land Development and Subdivision in New Zealand

  • Key Selling Industries
  • Agricultural and Construction Machinery Wholesaling in New Zealand
  • Gravel and Sand Quarrying in New Zealand
  • Hardware Wholesaling in New Zealand
  • Metal and Mineral Wholesaling in New Zealand
  • Petroleum Product Wholesaling in New Zealand
  • Site Preparation Services in New Zealand

  • Products & Services
  • State highway network improvement
  • Local road network maintenance
  • State highway network maintenance
  • Local road network improvement
  • Other construction
  • Chart: Road and Bridge Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Central Government
  • Local authorities
  • Private motorway and toll road investors
  • Residential and commercial property developers
  • Chart: Major Market Segmentation for the Road and Bridge 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 Road and Bridge Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Road and Bridge Construction Industry

  • Industry Globalization
    Fletcher Building Limited, Fulton Hogan Limited, DGL Investments Limited,
  • Table: Fletcher Building Limited - financial performance
  • Table: Fulton Hogan Limited - financial performance
  • Table: DGL Investments Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Road and Bridge 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 Road and Bridge Construction Industry
  • 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
    Public-Private Partnership (Ppp)
  • A contractual agreement between a public agency and private company to share skills, assets and financial resources to deliver a facility for public use.
  • Roading
  • The building of roads
  • Roads Of National Significance (Rons)
  • These are roads identified to be vitally important in moving people and freight between the five major population centres.
  • Toll Road
  • A road or bridge that users pay a toll to use.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Road and Bridge 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
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    This report on Road and Bridge 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 Road and Bridge 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 Road and Bridge 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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