Multi-million dollar losses have been forecasted to the construction and manufacturing sectors across Canterbury from the Covid-19 crisis.
Economic development agency ChristchurchNZ has forecasted losses of up to $245 million to the construction industry and up to $167 million to the manufacturing industry should the lockdown last four weeks in a new report.
According to ChristchurchNZ, the construction industry on average contributes $304 million a month to the region's economy.
However, approximately only $59 million of that comes from construction deemed an essential service under the current restrictions. This means a one-month lockdown would result in a loss of up to $245 million.
The only construction services allowed under the lockdown are those related to essential services, critical infrastructure, or those needed to maintain human health and safety at home or work. These include plumbing, electrical and heating services.
Civil Contractors NZ Canterbury branch chairman Jeremy Dixon said the lockdown period had been "horrendous" for the industry but was optimistic it would bounce back after a $1 billion infrastructure wish list was submitted to the Government.
The wish list asks the Government for funding for various "shovel ready" infrastructural projects which could stimulate the economy and create jobs.
The city council has submitted $818 million worth of projects including work on the multi-use arena, a film studio at Templeton and key roadworks. It is also backing $200 million worth of projects submitted by council-controlled organisations, bringing the total value of the infrastructure project package for Christchurch to just over $1 billion.
Mr Dixon said construction would play a "huge" role in the economic recovery of the city.
"It is a huge part of our region's working economy, it has 50,000 plus people linked to it. Hospitality has a long way to come back, tourism has a long way to go, apart from primary industries and construction there are very few opportunities to get the economy going so we have a huge responsibility," he said.
The manufacturing industry on average contributes $260 million a month to Canterbury GDP.
Considering essential services account for 36 per cent of the manufacturing industry, ChristchurchNZ forecasts the industry could experience a loss of up to $167 million over the course of a four-week lockdown.
The report also states: "Overseas experience in the countries like China suggest as a lockdown comes to an end and manufacturing businesses re-open, it is likely production levels will be lower than normal. This can be attributed to supply chain disruptions, curbed demand, and labour shortages caused by earlier job losses."
