Amid a contraction in project opportunities, New Zealand’s annual civil construction industry survey shows the country confronting a dual challenge: eroding business confidence and a reduced infrastructure construction workforce.
Yet according to the 2025 Construction Industry Survey, the industry is also showing resilience, with 47 percent of civil construction businesses stating they are confident in their ability to withstand and overcome challenges. Businesses are looking to innovative new technology and smart, climate-resilient project initiatives to support business growth and meet their communities’ needs.
The 2025 Construction Industry Survey is conducted annually by Teletrac Navman and Civil Contractors New Zealand (CCNZ) and is the civil construction industry’s annual review of business health and confidence in the sector. Now in its ninth edition, the results of the survey are being released today, ahead of CCNZ’s annual conference this week in Tauranga.
Industry-wide concern requires government action
Insights from the research reveal that today, just 16 percent of civil construction businesses report a positive business outlook – down from 50 percent in 2021.
Forty-two percent of businesses had downsized or laid off staff in the past 12 months, with 73 percent citing a lack of work as the industry’s biggest issue – up from 15 per cent in 2021.
“New Zealand’s civil construction industry is facing a confidence crisis where a lack of work, and uncertainty is placing the long-term health of the industry at risk, but there is plenty of hope on the horizon,” said Civil Contractors New Zealand Chief Executive Alan Pollard.
While the industry has faced a market downturn, the National Infrastructure Pipeline, managed by the New Zealand Infrastructure Commission, now shows planned future projects totalling $207 billion across central government, local government and the private sector.
However, Mr Pollard said there is a significant difference between pipeline projections and projects reaching the market. Often, projects are debated for decades, and the country’s civil construction industry needs clearer communications on new project opportunities, and more stable investment to provide job certainty for infrastructure construction workers.
The survey shows this strain is strongest for the sector’s small and medium-sized enterprises community (SMEs with 1-50 employees). SMEs make up 60 percent of New Zealand’s civil construction industry at large, with 27 percent expecting a reduction in revenue in 2025; triple the volume of SMEs expecting revenue reductions in the 2021 survey.
“It’s never been more important for central and local government to step up with a clearer, more consistent and visible pipeline of infrastructure construction and maintenance work, rather than just announcements,” said Mr Pollard. “We see this playing a central role in strengthening business confidence, helping to keep skilled workers in the industry, and ensuring we’re ready to meet not just today’s needs, but also New Zealand’s future infrastructure needs.”
Growing infrastructure investments will be key to retaining and keeping talent onshore
Human resources and skills remain a critical issue for the industry - The 2025 Construction Industry Survey insights show a sharp rise in underemployment - 73 percent of respondents cite a lack of available work for contractors (up from just 15 percent in 2021). Local talent retention will be one of the sector’s biggest challenges as industry professionals consider overseas opportunities for income sustainability or consider moving out of the sector altogether.
Looking ahead, the industry is clear on what it needs to regain its footing. 85 percent of civil construction professionals believe developing a clearer pipeline of central and local government projects would significantly improve business confidence and financial stability.
Climate change seen by industry as a key driver for smart infrastructure planning
Climate change resilience is noted by respondents as a critical area for investment, with 58 percent of respondents indicating they are not confident with New Zealand infrastructure’s current ability to cope with climate change. The industry is united in its call to government to add to its resilience infrastructure planning and funding (e.g. seawalls, stopbanks), seeing these projects as more than just business opportunities, but critical investments to safeguard communities from climate-related events like flood or fire.
Technology is recognised as a strategy for business efficiency and growth
Research also revealed technology’s positive role in the sector’s business outlook, with more than 40 percent of civil construction professionals seeing technology as a way to improve business efficiency and overcome challenges. Using technology strategically offers a competitive advantage for firms looking to secure future projects.
“While confidence in the sector is under pressure, our research with CCNZ clearly shows that businesses that embrace digital tools and connected platforms are positioning themselves to win work and navigate today’s industry uncertainty,” said James French, Construction Industry Specialist ANZ from Teletrac Navman. “Technology isn’t just a nice-to-have for civil construction businesses – It’s become a business imperative. This year’s Civil Construction Industry Report revealed that 60 percent of business leaders in the sector say that mandated technology helps them win work, so it’s clear technology is playing a key role in building a more resilient and competitive civil construction industry.”
The 2025 Civil Construction Industry Report is available now
The 2025 Civil Construction Industry Report represents a shared commitment by both Teletrac Navman and Civil Contractors New Zealand, the national association for civil construction, to support the sector with annual data-driven insights to strengthen the future of civil construction across Aotearoa New Zealand.
The full report is available for free download.
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