Chief Executive's Upfront
A Robust Concrete Landscape

The National Construction Pipeline Report has become a key document in forecasting construction industry activity. If the latest edition proves as accurate as previous versions then National construction value is forecast to grow to a peak of $37 billion in 2017.

This report, coupled with forecasts from the banking sector and Treasury, suggest that the medium term outlook for residential and commercial construction remains positive. 

Rob Gaimster, Chief Executive

CONSTRUCTION METRICS
Concrete volumes, often seen as a barometer of construction activity, are almost at unprecedented levels. 2016 saw around four million cubic metres of quality assured concrete produced.

CONCRETE INDUSTRY INVESTMENT
A sign that momentum in the economy is strong is the cement industry’s recent level of capital investment. 2016 saw the ‘bedding-in’ of a new cement supply model. Golden Bay Cement moved to a different distribution model, which involved a South Island supply chain that uses 500 ISO tanks; a new ship with increased capacity; and a 6,000 tonne storage silo and ship loading upgrade currently under construction south of Whangarei.

Holcim Lafarge New Zealand completed its $100 million investment in cement storage and distribution facilities with the opening of its Auckland terminal in July, following the January opening in Timaru. The 30,000 tonne storage structures are the first of their kind in New Zealand, the creation of which saw the cessation of production from the company’s Westport plant.

In other areas investment is similarly strong. The Hunua quarry in Auckland has received a $30m redevelopment, and a new $22m masonry plant at the quarry is due to be commissioned in June 2017. A number of ready mixed concrete plants are also scheduled to begin construction in West and South Auckland. Add to this the opening in November 2016 of a large precast factory in Pokeno and it is clear that expected levels of activity, particularly in and around Auckland, are considerable and that any concerns about capacity are being addressed.

STANDARDS DEVELOPMENT
Industry commitment to maintaining Standards will continue. For instance, Amendment 3 to NZS 3101 Concrete Structures Standard, and a corresponding Red Book seminar series, will soon be available to complement the recent amendment to NZS 1170.5 Structural design actions - Part 5: Earthquake actions - New Zealand.

ASSOCIATION ACTIVITY
From an association perspective, 2017 will see the emergence of a single consolidated organisation, to date referred to as Concrete NZ. This is an exciting development that will enable industry to promote excellence in all things concrete in a more efficient and effective manner.

SKILLS SHORTAGE
There is a concern however that a skills shortage could threaten the industry’s ability to maximise opportunities. One strategy is to have more people enrol in qualifications. As such we are excited that the BCITO, in collaboration with industry, has developed Workforce Development Plans to help create a workforce that has the capability and capacity to meet current and future needs.

The next 12-months look to offer growth opportunities for the concrete and wider construction industry in a similar manner to the last two-to-three years. CCANZ wishes all its stakeholders a safe and prosperous 2017, and looks forward to working with you.