BECOME A MEMBER
Connecting New Zealand

Shovels at the ready, but where’s the work?

20 Jul 2020


Construction and infrastructure industry leaders are calling for urgency around the release of the government’s full list of ‘shovel-ready projects’ as increasing numbers of workers face redundancy and business confidence amongst construction and infrastructure companies nose-dives.

Early this month the Government announced it had selected 150 projects worth NZD$2.6b that would create or retain 20,000 jobs. But four weeks later, only 30 projects worth about NZD$500m (approximately 25 per cent of the total allocated) had been released. A package including NZD$761m of three waters funding had also been announced, but without any timelines.

Civil Contractors New Zealand Chief Executive Peter Silcock said while the civil construction industry welcomed funding announcements and wanted to take the lead in driving post COVID-19 employment and economic recovery, details were urgently needed, or people would lose their jobs.

There was a big difference between making announcements and providing meaningful employment opportunities through economic activity, Mr Silcock said.

“The current situation is incredibly frustrating. We know the work is out there, but unless we know where, what and most importantly when projects will start, contractors are left totally in the dark. They will have no choice but to put workers off or face the risk of companies going under.”

He said employers had been waiting months for shovel-ready jobs and needed certainty to invest in people. Every week’s delay meant more would lose their jobs. A joint letter from industry leaders was sent to ministers in mid-June stating the urgent need. Ministers responded that answers were ‘imminent’, but the actual project details were still trickling out slowly, he said.

Infrastructure New Zealand Chief Executive Paul Blair said companies were running out of options.

“The drop off in well-signalled work across local councils and the private sector means industry is disproportionately dependent upon central government. All those small but steady jobs in local areas across the country help sustain employment in between big jobs that make front pages. They’re very important. That’s why industry was so pleased with the shovel-ready announcements.”

Mr Blair said timing was everything. Projects starting construction today had planners, designers and architects at work last year. Contractors began allocating resources, scaling up or down based on predictions of work. The problem now was that no one could see six to 12 months ahead, so they were taking risks retaining staff on assumptions work would appear or having to cut back hours.

“It’s very stressful, it’s increasing costs and it’s completely avoidable. The full list and timing of shovel ready projects needs to be released now with a clear commitment to project timeframes.”

Association of Consulting and Engineering Chief Executive Paul Evans said the situation was looking dire as local government cut spending on infrastructure projects, and unless urgent action was taken, the infrastructure and construction industries stood to lose a huge amount of skilled workers.

“We've seen this happen before. From 1987 into the early 90s, thousands of jobs were shed, creating a capability crisis lasting a decade, whose ripples remain today. The loss of skill and capacity in engineering and construction meant under-investment in critical infrastructure.”

Mr Evans said right now the industry could not create employment opportunities, and was instead adding people to the unemployment list. A June ACE New Zealand survey indicated 46 per cent of engineering consulting firms were experiencing cashflow and financial issues.

He said forty-five per cent had been considering cutting staff – the average loss was estimated at 15 per cent of the workforce. This was likely to have increased since June, with flow-on effects across the whole of the economy.


Update: A list of 59 of the 150 projects was published to the Crown Infrastructure Partners Website on 23 July. CCNZ, Infrastructure NZ and ACE NZ are continuing to follow up.

 

 

RELATED


Principal Business Partner
Core Associates
Major Associates
Infrastructure Sustainability Council
AECOM New Zealand Limited
Coninnova Limited
Brolube New Zealand
Milwaukee Tool New Zealand
CivilShare
Waka Kotahi NZ Transport Agency
Brandt Equipment
Terra Cat
XCMG New Zealand
SAMI Bitumen Technologies New Zealand Ltd
A B Equipment Ltd
Portacom New Zealand Limited
Axiom Training
ERoad Ltd
Assetinsure
Firth Certified Concrete
UDC Finance
Winstone Aggregates
Connexis | Te Pukenga
Turners Group Ltd: Head Office/Auckland
Synergy Positioning Systems
Geofabrics New Zealand Ltd
Mimico NZ Ltd
Kobelco New Zealand
TVH NEW ZEALAND
Liebherr New Zealand
BNZ Partners
Teletrac Navman
Greenlight Insurance Brokers
Komatsu New Zealand Ltd
John Deere Limited
Vertical Horizonz NZ Ltd
Reliance Reinforcing Limited
Infrastructure New Zealand
TRIG Instruments
Marley NZ Ltd
Rettenmaier New Zealand Ltd
Blick
Wirtgen NZ Ltd
Franklin Smith Group
Global Survey - Auckland
Manage Company
First Gas
Mico New Zealand Ltd
AWF
Solo
Nulca NZ
Steelgal NZ Ltd
Holcim New Zealand Ltd
TotalEnergies NZ Ltd
Doug the Digger
The Drug Detection Agency
SITECH NZ
RobLawMax Recruitment
Capital Consulting International NZ Limited
ENZED
Power Farming New Zealand Ltd
Advice Financial
TDX Ltd
Parallaxx
beforeUdig
Humes Pipeline Systems
MATES In Construction
Porter Group Limited
Northpine Ltd
Southeys Group Auckland
Terra Infrastructure Pty Ltd
n3
Te Pūkenga trading at WITT
H.J. Asmuss & Co. Ltd
Absolute Immigration NZ
Geosynthetic Partners International Ltd
Sheet Pile Ltd
CSP Div of Fletcher Steel
Hynds Pipe Systems
Assignar
TR Group
Enviro NZ Services Ltd
Youngman Richardson
Hydraulink Fluid Connecters Ltd
Vertu Equipment Limited
TLC Insurance Limited
Commercial Hire NZ Ltd

Login





Forgot password?
Create an Account