As we find ourselves in the midst of a rapidly progressing 2023, our team is taking stock of the current economic climate and its impact on the construction industry in Auckland. With economic uncertainty, declining house prices, and an approaching election, it's natural to feel the winter blues.
So, how is Auckland's construction activity currently faring?
From what we have observed, the situation is a mixed bag.
Our infrastructure customers remain busy, showing a strong determination to push their projects through the winter and look ahead to a promising summer season. On the other hand, customers focused on the residential market are facing more challenges. They have reported a lack of opportunities to bid on new projects at the moment, resulting in a slowdown of work.
Response work to the floods and cyclones from Q1 is gradually picking up momentum, with projects finally gaining traction after thorough geotechnical assessments and design work.
Taking a look at the latest ANZ Business Confidence Survey (30 June 2023), it provides some interesting insights. Business confidence in the broader market has bounced back to its highest point since November 2021. Commercial construction business confidence also shows a slight positive increase at 5.3 points compared to May. While residential confidence has seen a small uptick from its low point, it remains relatively subdued. Overall, we view these data points as somewhat positive for our customers.
In times of uncertainty, it's crucial to manage risk effectively. This is where we can assist you.
We offer flexible equipment rental solutions that allow you to manage your capital expenditure wisely. With no long-term obligations, you can rent the equipment you need for your projects and return it whenever necessary. If circumstances change or you require different assets, we are here to accommodate your needs and provide hassle-free asset swaps.