The construction sector has remained strong throughout 2021 and 2022 across most industry sectors. Photo: Unsplash / EJ Yao
The residential sector continues to power the construction industry with a record number of cranes operating around the country.
The third quarter RLB Crane Index indicates there were 148 long-term cranes on construction sites across the seven main centres.
There were 104 cranes in Auckland, 12 in Wellington, 10 in Christchurch, eight in Queenstown, five in Tauranga, five in Dunedin and four in Hamilton.
The residential sector had a record 77 cranes operating - five more than in the first quarter.
There was also a record 59 residential cranes in Auckland, including a further seven cranes in the aged care category.
Rider Levett Bucknall director Chris Haines said the construction sector had remained strong throughout 2021 and 2022 across most industry sectors.
"New Zealand's construction activity has continued to prove to be highly resilient, as the value of work put in place over the year to June 2022 stands at $30.9 billion, up 12 percent over 2021," he said.
However, there had been a pull-back in residential activity.
"Whilst the aged care, build-to-rent and Kāinga Ora pipeline is strong, the residential development pipeline is weaker into 2023 and we are potentially seeing a lag in the change to crane numbers on residential construction sites," he said.
However, the overall pipeline of construction work yet to start was resilient.
"Continued cost escalation and labour resources are the two biggest issues facing the industry and it will be interesting to see how the residential sector performs in 2023 and whether pull-back in demand and new projects can help the non-residential sectors in terms of labour, pricing and affordability into next year," Haines said.
The drop in the non-residential cranes was mostly attributed to the civil sector, and roading and bridge projects, which saw a net decrease of six cranes, while the data centre and recreational sectors saw a decrease of three cranes each.
However, the falls were offset by a pick-up in the health sector, where the number of cranes increased from two to six, in addition to seven in the aged care sector.