Has NZ’s construction industry’s productivity related GDP contribution increased by the Productivity Commission’s target of 20% by 2020

Abstract

The construction sector in New Zealand is considered to have a continuing low level of productivity. The industry has been contributing less to the National GDP than construction industries in America, Australia and the United Kingdom. This research aimed to determine via document analysis and survey questionnaires, whether New Zealand’s construction industry might accomplish a 20% increase in GDP contribution (ie 5.4% to 6.48% by 2020) as set by the Productivity Partnership in 2012. Publications suggested the construction industry’s contribution to the National GDP follows the average profit based productivity trend of four large NZX listed construction or construction-related companies. If true, it is forecasted that the target of a 20% increase will not be reached. Since 2017, the four selected NZX listed companies’ productivity has plateaued or decreased. A survey questionnaire undertaken, with selected Auckland based commercial construction-related employees focussed on gauging whether the respondents’ companies placed an emphasis on productivity measures and reporting. The productivity results from the survey questionnaires, evidenced that managerial and human resources are plaguing the construction industry. Conversely, the results showed that management and systems enhancers are the likely factors needed to improve productivity in the construction industry.