New Zealand report shows construction sector productivity same as 1985

WELLINGTON, Aug. 9 (Xinhua) -- A New Zealand report published on Friday painted a grim picture of the country's construction sector, finding that productivity levels have remained the same since 1985.

This is an extraordinary statistic considering how much technology has advanced since that time, said Building and Construction Minister Chris Penk.

The report, made by the New Zealand Chinese Building Industry Association, highlighted major and widespread productivity challenges facing the country's construction sector.

One of the key challenges is the increasingly slow build process, with the time taken to build a home increasing by 50 percent since 2013, from 13 months to 19 months, which helps to create an unaffordable housing market, forcing Kiwi families to spend more of their income on housing, with renters now spending nearly 40 percent of their income on housing, the report said.

The construction sector as a crucial part of the New Zealand economy contributed 99 billion NZ dollars (59.67 billion U.S. dollars) in sales in 2023 and indirectly supported 20 percent of all jobs in New Zealand, Penk said.

The government has been working to make it easier and more affordable to build, focusing on streamlining the building consent system and removing unjustifiable red tape that is slowing down the build process.

The measures include removing barriers for overseas building products to be used in New Zealand, making remote inspections the default approach, and making it easier for minor changes to be made to a building consent, Penk said.