Post-Covid-19 construction crunch – From survive to thrive
– Stephanie Pretorius, Intent Group New Zealand’s construction industry has been heavily disrupted since the arrival of Covid-19 to our shores. A relief package is now available, with the New Zealand Government investing heavily in the industry to the tune of $3B. Funded infrastructure projects include a significant amount of ‘shovel ready’ projects identified to support the short-term pipeline over the next 12 months. Despite extra funding, certain segments of construction are likely to still be negatively impacted. As an example, Auckland alone recently lost $500 from Council revenue budgets; the flow on effects are still to be determined. The funding pipeline may be affected for multiple years and there is risk of misalignment of capacity as funding may swing between years. The intent of the fast tracked ‘shovel ready’ projects is to quickly stabilise cashflow, as well as the pipeline for the industry, and to help construction survive in the short term. But how can we take this further and help construction to thrive in the long term? As a sector, construction has been ‘sailing close to the wind’ for a long time with tight margins and low productivity. The Construction Accord (Accord) has set the tone for the future, outlining goals for improved productivity, capability and resilience. Now is the time for industry players to take ownership of the direction for their own long-term sustainability. If improving productivity is an Accord goal – who will be the first to take bold action? Staking a claim to become excellent at what you do, and getting better every day, is going to pay dividends in terms of preferred supplier status, higher profitability, people retention and development, and ultimately long term survival. Many construction businesses took away lessons learnt from their Covid-19 experience as the ability to respond and adapt to […]