Chief executive of apprenticeship provider the Building and Construction Industry Training Organisation Warwick Quinn said New Zealand’s building boom was set to continue, making it the longest in the country’s history.
While data on consents issued in December is not yet available, the total for the year to November was 28,916, close to 2016’s entire total of 30,063, he said.
Mr Quinn predicted there would be about 31,000 consents for 2017, surpassing 2016’s total by 3%.
"This will mean the longest bull run in construction activity since records were first collected in the 1960s," he said.
The previous longest runs were the five years from 1969 to 1973 and the four years between 2001 and 2004.
Mr Quinn said the construction industry was well known for its volatility.
"Both of the other bull runs were followed by even lengthier recessions.
"However, this time it appears growth is set to continue for the foreseeable future and should be further boosted by Labour’s KiwiBuild programme," he said.
Mr Quinn said Auckland had enjoyed seven years of continuous growth, and Northland, Waikato, Bay of Plenty, Taranaki and Otago five years each, all of which were record runs.
Otago booked a 25% gain in consents over 11 months last year, the fourth highest in the country behind the West Coast’s 41.6% gain, Marlborough’s 41.5% and Gisborne’s 41.3%.
There are numerous housing developments around Central Otago, a lot of University of Otago work is under way in Dunedin, and the proposed more than $1billion Dunedin hospital rebuild is on the horizon. However, monthly BNZ-BusinessNZ data on the construction sector has shown the southern construction sector has been dogged by the lack of skilled staff and tradespeople for almost two years.
Both the Otago Chamber of Commerce and Otago Southland Employers’ Association have repeatedly highlighted rising concerns over construction skills shortages.
Mr Quinn said the high level of consents was why the demand for skills was very high across all trades and regions.
"While a lot of media attention has been focused on Auckland, there is significant demand throughout the country.
"More than 65,000 construction workers are needed over the next five years and a little under half of these need to be trade qualified," he said in a statement.
Mr Quinn said it was critical people understood the Government’s fees-free policy applied not just to universities and polytechnics but also industry training.
"Apprentices that are eligible will get the first two years fees-free, which pays for half of a four-year apprenticeship," he said.
