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New Zealand – Construction industry booming but salaries stagnate

27 August 2014

The majority (80%) of employers say business activity has increased in New Zealand’s construction industry over the last 12 months but salaries remain steady for most roles, according to the 2014 Hays Construction/New Zealand Institute of Building (NZIOB) Salary Guide.

David Cleet, Senior Business Manager of Hays Construction, commented: “Off the back of the Canterbury rebuild (following the 2011 earthquake), construction is going through a period of sustained growth. But for many employers, the skills shortage remains the key inhibitor to growth. That’s why salaries in Christchurch have seen some of the sharpest increases nationally.”

“In comparison, salary increases in Auckland have been more modest and are generally in line with inflation. This is expected to change given growing demand for skilled professionals. Auckland is already experiencing a residential construction upsurge in response to the housing shortage, while commercial construction is more positive with tower cranes again dotting the skyline.”

“While salary pressure has been evident in Wellington, employers have only offered minimal salary increases, similar to Auckland.”

He continued: “Looking ahead, infrastructure projects, seismic upgrades and improvements to the commercial and residential market will drive growth and add extensive demand pressure to an already tight labour market. High demand, increased workload and a deepening skills shortage will create salary pressure, which employers will need to balance with project budgets.”

Rick Mason, Chief Executive of the New Zealand Institute of Building said: “The number of projects currently underway, or in the planning stages, in New Zealand together with the calibre of senior personnel that will be required to complete those projects, makes this Salary Guide a ‘must have’ for companies looking to hire or retain responsible and competent construction staff.

“The NZIOB have collaborated with recruiting experts Hays Construction for the past ten years on this annual Salary Guide. It has become an invaluable tool for construction industry professionals, for both career and business planning,” Mr Mason concluded.

The Guide also found that:

  • 89% of construction employers expect the general economic outlook to strengthen over the coming 6 to 12 months;
  • Workers typically work 40 to 49 hour weeks;
  • 81% of management staff are men;
  • 85% of organisations use contract staff for labour positions;
  • 57% say their use of contract staff will increase over the next 12 months;
  • 39% of staff remain with an organisation for three to five years, while 31% stay for five to 10 years;
  • 77% of employers report difficulty recruiting Quantity Surveyors, making them the most difficult professionals to recruit. This is closely followed by Estimators (76%), Project Managers (75%), Senior Managers (72%), Forepersons (64%), and Site Managers (58%). 
  • Architects have proven the easiest to recruit, followed by Cadets/Entry-level, Leading Hands and Engineers.

To read the full report, click here.