SR326 Productivity trends and the implications for our industry (2019)

Traditional productivity measures such as capital and labour productivity suggest that the construction industry has performed poorly over a long period of time. This is particularly the case when compared to industries such as agriculture and forestry.

In recent years, however, the rebound in demand for housing in Auckland, earthquake strengthening, the Canterbury rebuild, leaky buildings remediation and large infrastructure projects have led to a busier building industry. At the same time, the Productivity Partnership has set a target of a 20% increase in multi-factor productivity by 2020.

This report illustrates the importance of resilience for the construction industry. The boom-bust nature of the industry makes it necessary for the industry and individual businesses to understand what the implications are and how to prepare for it. This report provides the empirical evidence for understanding how productivity is affected across the business cycle and identifies areas to focus on to better prepare for the next downturn.