construction and infrastructure sponsor group

PrePared for: Auckland Construction Sector on behalf of Construction and Infrastructure Sponsor Group June 2014

Construction and Infrastructure Sponsor Group

Workforce Skills Roadmap for Auckland Construction Sector (2013-2018) PrelImInAry rePort

Sponsor Group

Information sources including:Working group: Fletcher Building, Hawkins Construction, naylor love Construction, Dominion Constructors ltd.

Additional sources and reports from: Auckland Council, Auckland Procurement Forum, Productivity Partnership, roading nZ, BrAnZ, nZCID, nZ Contractors Federation, national Infrastructure Unit, BCIto, Infratrain Ito, SCIrt, mBIe.

Secondary Contributors: Building and Construction Ito CompetenzInfrastructure Itomanukau Institute of technologytertiary education CommissionSkills organisationUnitec Institute of technology Building and Construction Productivity Partnershipministry of Business, Innovation and employment

Sponsor Group – Primary Contributors:

Companion document to:Auckland’s Construction and Infrastructure labour requirements: 2013-2023Commissioned report prepared by market economics ltd.

This document is intended as a preliminary high level “roadmap” of anticipated workforce growth in the Auckland construction sector over the

next 10 years. It focuses primarily on industry sector skills growth in the next five years.

Developed in conjunction with the Auckland construction sector, this report is intended to assist the tertiary vocational education providers

better respond to employment growth associated with the anticipated “wall of work” in Auckland during the period through to 2018.

This summary report provides broadly indicative high level employment growth trends, both directly in the construction sector and in related

supporting occupations in the wider Auckland economy. A more detailed breakdown for each occupation is available in the companion report

(“Auckland’s Construction & Infrastructure Labour Requirements”). These two reports should be read in conjunction.

This roadmap will be updated regularly to reflect changes in the sector. Feedback is sought to www.workforceroadmap.org regarding the process of

its creation and the method of data presentation.

Purpose of this Document

1

employment Growth in Construction and Infrastructure occupations in Auckland

Auckland has the largest share of this growth –

approx

44% InCreASe in demand to 2018

70% of all residential growth during 2013-2023 occurs in the first

5 yeArS

Infrastructure investment

InCreASeS led by roading, electricity and water

new house building more than

doubleS over the next DeCADe, including an increase in apartments

direct sector growth

11,800

Wider economy growth

20,200(100%)

32,000ToTAl GRoWTh

Unprecedented levels of growth in building and construction are forecast in the immediate future in new Zealand, dominated by Auckland.

“WAll of WoRk”

this increase in construction activity

drives total net growth of

32,000 in construction and

infrastructure occupations across the Auckland economy.

SIGnIfICAnT GRoWTh

2

Skill level totals

69% of total employment growth is driven by reSIDentIAl ConStrUCtIon

Page 2 to be viewed with page 3

employment Growth Summary

Bachelors Degree or equivalent experience

nZ register level 4 Qualification or similar

nZ register level 2 or 3 Qualification or similar

nZ register Diploma or similar

nZ register level 1 Qualification or similar

See more detail on direct C & I sector occupations on pages 8 and 9.

See Appendix 2 for ANZSCO skill levels on page 14

See more detail on wider Auckland economy C & I occupations on pages 10 and 11.

See 2018 totals in graph on page 7. (34%)11,050 (25%)8,000 (7%)2,450 (15%)4,650 (19%)5,850

– Project builders– Construction project managers– Civil engineering professionals– Industrial mechanical production

engineers ...

(15%)4,950– Architectural building & survey

technicians– Contract programme & contract

administrators– other engineering technicians ...

(1%)450– Carpenters & joiners– electricians– Plumbers– Painting trades ...

(12%)4,000– truck drivers– Structural steel & construction

workers– Specialised plant operators ...

(2%)550– Commercial cleaners– Plumbing & building labourers– other labourers ...

(6%)1,850

– Policy & planning managers– Project builders– Civil engineering professionals– Architects & landscape architects ...

(19%)6,100– Contract programme & contract

administrators– Architectural building & survey

technicians– other engineering technicians ...

(6%)2,000– motor mechanics– metal & steel workers– Carpenters & joiners ...

(13%)4,000– truck drivers– Supply, despatch & transport

logistics clerks– machine operators– Specialised plant operators ...

(13%)4,100– other labourers– Commercial cleaners– Plumbing & building labourers ...

(13%)4,000

oCCuPatIonS by formal traInInG and/or exPerIenCe

anzSCo SkIll levelS

3

1 2 3 4 5Page 3 to be viewed with page 2

the national Construction Pipeline forecasts unprecedented levels of demand for building and construction in the immediate future – 23% above the last construction peak in 2007 and 44% above 2013 levels. residential construction markets are leading this growth.

Auckland has the largest share of forecast growth levels for building and construction in new Zealand.

In Auckland, high levels of construction sector pipeline growtha build to peak levels 2018/2019 – a 44% increase in activity on 2013 levels. Contributing to this ‘wall of work’ is:

• strongresidentialgrowth,withnewhousebuildingmorethandoublingoverthenextdecade.Key features include an increase in apartments and medium density housing, and around 70% of residential growth occurring in the first 5 years

• remedialworkincludingearthquakestrengtheningandleakybuildings

• increasingvalueofnon-residentialconsents

• alargenumberofcivilprojectsunderwayorbeingaccelerated(up35%on2013levels)ledbyroading, electricity and water

Building and Construction Pipeline

Source: Pacifecon/BRANZ

$ m

illio

ns

years

35000

30000

25000

20000

15000

10000

5000

072 76 80 84 88 92 96 00 04 08 12 1674 78 82 86 90 94 98 02 06 10 14 18

nAtIonAl vAlUe oF BUIlDInG AnD ConStrUCtIon HIStorIC AnD ForeCASt

23%44%

res non res total

$ m

illio

ns

year

14000

12000

10000

8000

6000

4000

2000

02012/13 2016/17 2020/212014/15 2018/19 2022/232013/14 2017/18 2021/222015/16 2019/20

ForeCASt vAlUe oF ConStrUCtIon – AUCKlAnD

Auckland Pipelinenational Pipeline

Civil non residential residential

4

$

a - see Appendix 1

Auckland’s construction sector is a major source of employment in the region. Around 49,000 employees and self-employed business owners are currently employed in the construction sector, accounting for over 6.5% of total employment in Auckland. In 2013, the construction sector had over 16,000 businesses.

over 60% of businesses in the sector only have a single self-employed working proprietor (andnootheremployees),makingup30%ofallworkersinthesector.Themajorityofthesebusinesses are in the building construction and construction services sub-sectors of the industry – for example: in residential building as project builders; building services installation as electricians and plumbers; building completion activities which include painter/decorators.

In the last five years, overall employee numbers have declined following the reduction and consolidationoftheconstructionsector(2008-2010).Notably,residentialandconstructionservices had the most significant workforce decline during this period, compared with the positive employee growth trend maintained in heavy and civil engineering.

employment in the Construction Sector in Auckland

Construction Sector employee (only) Count by regionthe following figures are included to give indications of employment trends for employees only, they do not capture self employed owners in the sector

Auckland Canterbury Wellington

BUIlDInG ConStrUCtIon

empl

oyee

s

2003

2007

2011

2005

2009

2013

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

year

5

Source: Occupation Outlook, 2014, MBIE, p6

empl

oyee

s

2003

2007

2011

2005

2009

2013

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

year

HeAvy & CIvIl enGIneerInG

empl

oyee

s

2003

2007

2011

2005

2009

2013

25,000

20,000

15,000

10,000

5,000

0

year

ConStrUCtIon ServICeS

Employmentinconstructionandinfrastructure(C&I)a occupations will be strong over the next several years as the known and planned projects build to peak levels in 2018/2019.

the pipeline of forecast national and regional construction projects and broader economic drivers influencing the sector provide a basis for developing a projection of the skilled workforce for the sectorb.

162,000 construction and infrastructure occupations are located in a range of sectors across the Auckland economy, with 49,000 of these directly employed in the C & I sector.

Based on expanding construction activity, the total employment in construction and infrastructure occupations in Auckland is anticipated to increase by 32,000c.

Around 11,800c of this employment growth will occur directly in the construction sector.

EmploymentGrowthinConstructionandInfrastructureOccupationsinAuckland(2013-2018)

a. See note 1, Appendix 4b. See note 2, Appendix 4c. See note 3, Appendix 4

empl

oym

ent

grow

th

45,000

40,000

35,000

25,000

20,000

15,000

10,000

5,000

* 020232021201920172015 20222020201820162014

CUmUlAtIve emPloyment GroWtH 2013-2023

Civil construction related employment non residential construction related employment residential construction related employment

* Growth additional to a baseline of existing employees in C & I occupations in the Auckland economy: 162,000

year

Share of related employment growth due to pipeline forecasts across subsectors

Civil 22%

non-residential 9%

residential 69%

2013 2018

250,000

200,000

150,000

100,000

50,000

0

year employment directly in construction sector employment in wider Auckland economy

162,000

194,000

11,800 increasein sector

20,200 increasein wider economyn

umbe

r of

em

ploy

ees

residential construction activity accounts for around 69% of all employment growth (approx.23,000workersoutofthe32,000 in construction and infrastructure occupations).

6

the annual employment growth in the top 62 skilled construction and infrastructure occupations reflects the timing and annual rate of growth of the pipeline of anticipated construction sector activity.

Based on historical sector patterns, employment growth will be met, in part, by:• reallocationofexistingcapacity• movementofworkersacrosssub-sectors• workersreturningtothesector• relocationofexistingC&IworkerstoAuckland,and• innovationrelatingtospecificworktasks/processesFurther employment growth will be met by the recruitment of workers to the sector.

employment growth (2013-2018) by AnZSCo skill levelIn the first five years, the total 32,000 employment growth in construction and infrastructure occupations in Auckland is comprised of:

• 34%growthinskilllevel1occupations• 32%growthacrossskilllevels2and3occupations• 34%growthacrossskilllevels4and5occupations

Annual employment Growth

For brief description of skill level key: see Note 4, Appendix 4

Skill level 1 Skill level 2 Skill level 3 Skill level 4 Skill level 5

5850 employees 19%

4650 employees 15%

8000 employees 25%

11,050 employees 34%

2450 employees 7%

CUmUlAtIve emPloyment GroWtH (2013-2023) By AnZSCo SKIll level

Employ

men

tgrow

th(a

llecon

omy)

45000

40000

35000

30000

25000

20000

15000

10000

5000

0

32,000

5 yeAR ToTAl

2013

BASelIne

2014 2016 20182015 2017 2019 2020 2021 2022 2023

7

2

15

4

3


DirectConstructionSectorEmploymentGrowth(2013-2018) (bysub-sectorpipeline)

* Pr

ojec

t Bu

ilder

s

Carp

ente

rs a

nd Jo

iner

s

Com

mer

cial

Cle

aner

s

elec

tric

ians

* Co

nstr

uctio

n Pr

ojec

t m

anag

er

Plum

bers

Build

ing

and

Plum

bing

lab

oure

rs

Pain

ting

trad

es W

orke

rs

oth

er m

iscel

lane

ous l

abou

rers

Civi

l eng

inee

ring

Prof

essio

nals

Arch

itect

ural

, Bui

ldin

g an

d Su

rvey

ing

tech

nici

ans

Plas

tere

rs

Cont

ract

, Pro

gram

and

Pro

ject

Adm

inist

rato

rs

Polic

y an

d Pl

anni

ng m

anag

ers

roof

tile

rs

elec

tric

al D

istrib

utio

n tr

ades

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kers

truc

k D

river

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Brick

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nem

ason

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tele

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ions

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des W

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Fin

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duct

ion

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rical

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and

tech

nicia

ns

oth

er m

achi

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elec

tric

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oth

er B

uild

ing

and

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tech

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ans

met

al F

itter

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mac

hini

sts

Cabi

netm

aker

s

Dril

lers

, min

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nd S

hot

Firer

s

oth

er S

tatio

nary

Pla

nt o

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engi

neer

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man

ager

s

Prod

uctio

n m

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ers

elect

roni

c en

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tech

nicia

ns

mot

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Shee

tmet

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kers

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and

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Gar

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hasin

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log

istic

s Cle

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n an

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ome

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ovem

ent

Inst

alle

rs

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ng a

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urfa

cing

lab

oure

rs

Supp

ly a

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istrib

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n m

anag

ers

tech

nica

l Sal

es r

epre

sent

ativ

es

Arch

itect

s and

lan

dsca

pe A

rchi

tect

s

Civi

l eng

inee

ring

Dra

ftsp

erso

ns a

nd t

echn

icia

ns

Clay

, Con

cret

e, Gl

ass,

Ston

e Pr

oces

sing

mac

hine

ope

rato

rs

Indu

stria

l Spr

aypa

inte

rs

Gar

den

and

nur

sery

lab

oure

rs

Frei

ght

and

Furn

iture

Han

dler

s

Fork

lift

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ers

met

al Ca

stin

g, Fo

rgin

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d Fin

ishin

g tr

ades

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kers

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achi

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s and

oth

er W

ood

trad

es W

orke

rs

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r and

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oces

sing

mac

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rato

rs

Fenc

ers

Geo

logi

sts a

nd G

eoph

ysic

ists

oth

er e

ngin

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ofes

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ls

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spor

t an

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espa

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tim

ber a

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ood

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ess W

orke

rs

Occup

ationGrowth(2

013-20

18)

3800

3600

3400

3200

1200

1000

800

600

400

200

0

total increase: 11,800

key GRoWTh AReASBuilding construction trades

Skilled labourers

Building installation & completion trades

Project management & administration

engineering professionals & technicians


8

* See Note 5, Appendix 4

Civil Pipeline employment Growth non residential Pipeline employment Growth residential Pipeline employment Growth


DirectConstructionSectorEmploymentGrowth(2013-2018):OccupationsbyANZSCOSkillLevel

SkIll level 1

Proj

ect

Build

er

Indu

stria

l, m

echa

nica

l and

Pr

oduc

tion

engi

neer

s

Supp

ly a

nd

Dist

ribut

ion

man

ager

s

Chie

f en

gine

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g Pr

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ls

engi

neer

ing

man

ager

s

Arch

itect

s and

la

ndsc

ape

Arch

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s

Cons

truc

tion

Proj

ect

man

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al

engi

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tech

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al S

ales

re

pres

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tives

Polic

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d Pl

anni

ng

man

ager

s

Prod

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anag

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Geo

logi

sts a

nd

Geo

phys

icist

s

oth

er e

ngin

eerin

g Pr

ofes

siona

ls

4,0003,5003,0002,5001,5001,000

5000

Growth: 4950

SkIll level 3

Carp

ente

rs a

nd Jo

iner

s

elec

tric

ians

Plum

bers

Pain

ting

trad

es W

orke

rs

Plas

tere

rs

roof

tile

rs

elec

trica

l Dist

ribut

ion

trad

es W

orke

rs

Brick

layer

s and

St

onem

ason

s

tele

com

mun

icat

ions

tr

ades

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kers

Floor

FIn

isher

s

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l and

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or t

ilers

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ziers

met

al F

itter

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mac

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netm

aker

s

mot

or m

echa

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tmet

al t

rade

s Wor

kers

Stru

ctur

al S

teel

and

Wel

ding

tr

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Gar

dene

rs

met

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astin

g, Fo

rgin

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ishin

g tr

ades

Wor

kers

Woo

d m

achi

nist

s and

o

ther

Woo

d tr

ades

Wor

kers

1,4001,2001,000

800600 400 200

0

Growth: 4000residential and commercial building will generate employment for over 1200 carpenters and joiners. electricians, plumbers/drainlayers/gasfitters and other construction services account for another 1200.

SkIll level 2

Architectural, Building and Surveying technicians

electrical engineering

electronic engineering

Contract, Program

and Project

other Building and engineering

Civil engineering Draftspersons

250

200

150

100

50

0

Growth: 450employment growth of 300 technicians and draftspeople; 150 project support personnel.

SkIll level 4

truc

k D

river

s

Stru

ctur

al S

teel

Co

nstr

uctio

n W

orke

rs

eart

hmov

ing

Plan

t o

pera

tors

oth

er m

obile

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ant

ope

rato

rs

oth

er m

achi

ne

ope

rato

rs

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lers

, min

ers a

nd

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Fire

rs

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er S

tatio

nary

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hasin

g an

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istic

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erks

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latio

n an

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ome

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ovem

ent

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alle

rs

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cret

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lass

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essin

g m

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rces

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stria

l Sp

rayp

aint

ers

tran

spor

t an

d D

espa

tch

Cler

ks

Growth: 550160140120100806040200

Specialised plant operators and truck drivers account for 50% of growth with an additional 21% being structural and steel workers.

residential and commercial projects will employ over 3500 project builders and 600 further construction project managers.

SkIll level 5

Com

mer

cial

Cl

eane

rs

Han

dype

rson

s

oth

er m

iscel

lane

ous

labo

urer

s

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den

and

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la

bour

ers

Build

ing

and

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bing

lab

oure

rs

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ng a

nd

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cing

lab

oure

rs

Conc

rete

rs

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ght

and

Furn

iture

H

andl

ers

Fenc

ers

tim

ber a

nd W

ood

Proc

ess W

orke

rs

900800700600500400300200100

0

Growth: 1850In addition to over 800 commercial cleaners, increased employment for over 800 other skilled labourers.

Comments relate to occupation employment growth directly in Construction sector.

For brief description of skill level key, see Note 4, Appendix 4.

9


AucklandEconomyEmploymentGrowthinC&IOccupations(2013-2018)*P

roje

ct B

uild

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ous l

abou

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Polic

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rical

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Wal

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ome

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d Pr

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met

al Ca

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ers a

nd S

hot

Firer

s

Civi

l eng

inee

ring

Dra

ftsp

erso

ns a

nd t

echn

icia

ns

Indu

stria

l Spr

aypa

inte

rs

tim

ber a

nd W

ood

Proc

ess W

orke

rs

Woo

d m

achi

nist

s and

oth

er W

ood

trad

es W

orke

rs

Geo

logi

sts a

nd G

eoph

ysic

ists

Pavi

ng a

nd S

urfa

cing

lab

oure

rs

Fenc

ers

Occup

ationGrowth(2

013-20

18)

5000

4500

4000

3500

2000

1500

1000

500

0


10

total increase: 32,000

key GRoWTh AReASBuilding construction trades

Skilled labourers

Building installation & completion trades

Structural / steel trades

truck drivers, motor mechanics, plant operators

Project management & administration

engineering professionals & technicians

* See Note 5, Appendix 4

Wider economy (Increaseof20,200) Direct C&I (Increaseof11,800)


AucklandEconomyEmploymentGrowthinC&IOccupations(2013-2018):ByANZSCOSkillLevel

SkIll level 1

Proj

ect

Build

er

Prod

uctio

n m

anag

ers

tech

nica

l Sal

es

repr

esen

tativ

es

Chie

f eng

inee

ring

Prof

essio

nals

Supp

ly a

nd

Dist

ribut

ion

man

ager

s

engi

neer

ing

man

ager

s

Polic

y an

d Pl

anni

ng

man

ager

s

Arch

itect

s and

la

ndsc

ape

Arch

itect

s

elec

tric

al

engi

neer

s

Cons

truc

tion

Proj

ect

man

ager

Indu

stria

l, m

echa

nica

l &

Prod

uctio

n en

gine

ers

oth

er

engi

neer

ing

Prof

essio

nals

Geo

logi

sts a

nd

Geo

phys

icist

s

employment growth of 11050, Wider economy: 6100, Constr. sector: 4950500045004000350030002500200015001000500

0

relatively even employment growth in construction sector and wider economy. Growth of policy and planningmanagement(1500),civilandotherengineeringprofessionals(2000),additionalgrowthinprojectbuilders(1000).

SkIll level 2 employment growth of 2450, Wider economy: 2000, Constr. sector: 4501,4001,2001,000

800600400200

0Contract, Program

& Project Administrators

other Building and engineering technicians

electronic engineering Draftspersons and

technicians

Architectural, Building and Surveying technicians

electrical engineering Draftspersons and

technicians

Civil engineering Draftspersons and

technicians

82% of employment growth is outside the construction sector. Additional growth in technicians(800)andcontractandprojectadministration(1000).

Carp

ente

rs a

nd

Join

ers

elec

tric

ians

mot

or m

echa

nics

Plum

bers

met

al F

itter

s and

m

achi

nist

s

Gar

dene

rs

Pain

ting

trad

es

Wor

kers

Stru

ctur

al S

teel

and

Wel

ding

tr

ades

Wor

kers

Plas

tere

rs

tele

com

mun

icat

ions

tr

ades

Wor

kers

elec

trica

l Dist

ribut

ion

trad

es W

orke

rs

Shee

tmet

al t

rade

s W

orke

rs

Cabi

netm

aker

s

roof

tile

rs

Brick

layer

s and

St

onem

ason

s

Floor

FIn

isher

s

Wal

l and

Flo

or t

ilers

Gla

ziers

met

al C

astin

g, Fo

rgin

g an

d Fin

ishin

g tr

ades

Wor

kers

Woo

d m

achi

nist

s and

oth

er

Woo

d tr

ades

Wor

kers

2,0001,8001,6001,4001,2001,000

800600400200

0


equal employment growth in construction sector and wider economy. Additional growth in building relatedtrades(1100),growthinmotormechanics(800)andmetal/steeltradesworkers(800).

SkIll level 4

truc

k D

river

s

Purc

hasin

g &

Sup

ply

logi

stic

s Cle

rks

oth

er m

achi

ne

ope

rato

rs

tran

spor

t an

d D

espa

tch

Cler

ks

eart

hmov

ing

Plan

t o

pera

tors

Fork

lift

Driv

ers

Stru

ctur

al S

teel

Co

nstr

uctio

n W

orke

rs

oth

er m

obile

Pla

nt

ope

rato

rs

oth

er S

tatio

nary

Pl

ant

ope

rato

rs

Pape

r and

Woo

d Po

rces

sing

mac

hine

o

pera

tors

Insu

latio

n an

d H

ome

Impr

ovem

ent

Inst

alle

rs

Dril

lers

, min

ers a

nd

Shot

Fire

rs

Clay

, Con

cret

e, G

lass

an

d St

one

Proc

essin

g m

achi

ne o

pera

tors

Indu

stria

l Sp

rayp

aint

ers

1600140012001000800600400200

0


88% of employment growth is outside construction sector. Growth associated with transportandlogistics(2600),specialisedplant andmachineoperators(1000).

SkIll level 5

oth

er

misc

ella

neou

s la

bour

ers

Han

dype

rson

s

Build

ing

and

Plum

bing

la

bour

ers

Conc

rete

rs

Com

mer

cial

Cl

eane

rs

Frei

ght

and

Furn

iture

H

andl

ers

Gar

den

and

nur

sery

la

bour

ers

tim

ber a

nd

Woo

d Pr

oces

s W

orke

rs

Pavi

ng a

nd

Surfa

cing

la

bour

ers

Fenc

ers

3000

2500

2000

1500

1000

500

0


68% of employment growth is outside construction sector. Increased employment forarangeofskilledlabourers(over2000).

SkIll level 3

11

For brief description of skill level key, see note 4, Appendix 4.

Direct C&I

Wider economy


the employment prospects in the construction industry in Auckland are positive.

the workforce in the Auckland construction sector is anticipated to increase at an annual rate of 4.8% per year between 2013-2018, higher than national growth forecastsa for employment this sector.

In a number of occupationsb, including construction project managers, project builders, electricians, quantity surveyors and scaffolders, there are immediate and longer term employment opportunities as part of a wider range of career opportunities in construction and infrastructure across the Auckland region.

Sector occupations with strongest growth indications

Projected Growth (annual average) next 5 years

Project builders including building project manager and site foreman

6.0%Structural steel constructors (includingscaffolding) 3.7%

Construction Project managers 6.0%

Contract and project administrators 3.6%

Carpenters and joiners

5.4%Civil engineering professionals including quantity surveyors

Architects, landscape architects3.5%

Bricklayers, plasterers

4.9%machine and plant operators including earthmoving and mobile plant

3.5%Clay and concrete machine operators, concreters, paving and surfacing labourers

4.7%Insulation installers

3.5%Painting trades, glaziers, roof tilers, plumbers 4.4% Construction and

infrastructure labourers 3.4%Building and plumbing labourers 4.3% Policy and planning managers 3.3%electricians, electrical distribution, telecommunications trades

4.0%technicians/draftsperson: Civil engineering, electrical, other building and engineering

3.2%technicians: Architectural, building 4.0%

managers: engineering, production, supply and distribution engineers: electrical, industrial mechanical, other

3.0%Commercial cleaners 3.9% Sheetmetal workers, structural

steel and welding, metal fitters 3.0%

employment Prospects

12

a. See note 6, Appendix 4b. See note 7, Appendix 4

Auckland has the largest share of forecast levels of growth for building and construction in new Zealand. Auckland’s construction sector is predicted to grow from $8.2bn in the 2012/13yearto$11.8bnin2018/19(a44%increase)andonto$12.2bnby2023(48%higherthan2012/13).

Auckland’s construction sector pipeline has been calculated from a combination of data sources including:

• actualexpenditureandcommittedfundingforworkprogrammes

• forwardworkprogrammesdrawnfromplansfromagenciessuchasNZTAand Auckland Council

• assessmentsofcurrentandplannedresidentialbuildinggrowth

• estimatesofcommercialintentionsthatdrawfromcapitalformationratesapplied to business turnover projections, and

• householdgrowthfutures

the combination of this information provides the first cut at estimating the demand pressures likely to be faced by construction sector businesses over the short to medium term. Changes in both the non residential and civil work streams will be monitored continually as large projects in these areas are more susceptible to delay or being halted altogether, than are the workflows in the residential sector. these shifts can release capacity for other projects in construction.

Thecurrentpipelinescenario(asdeveloped)isbasedon:

• Residentialactivitycontinuingtogainmomentumasdwellingconsentnumbers(whiletrendingupwards)arestillslightlybelow2007levelsandconsentsforapartmentblockshave re-emerged. residential growth is anticipated to further accelerate with the approval of Special Housing Areas.

• Nonresidentialsectorperformanceprojectionsarebasedonastandardcombinationofscenario modelling of export and industry performance, extrapolation of recent trends, and industry views of future. non-residential consents value is increasing and while they do not fluctuate as significantly as residential consents they are well below 2007 levels.

• InfrastructuregrowthinAucklandisledbystrongcommitmentinroading(around50%oftotalinvestment)andwaterprojects.Alargenumberofcivilprojectsareorwillbeunderway(egWesternRingRouteSH20,AMETI,WatercareCentralInterceptorinfrastructure,AucklandInternationalAirport,lineandbroadbandnetworks).Infrastructurefigures include a range of projects with this forecast reflecting the industry’s increasing expectation of sector growth as funding is committed for forward plans.

Appendix 1: Auckland’s Construction Pipeline

Total Construction Sector outlook by Workstream 2013-2023 ($m 2013)

($m) 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23

Residential 3193 3481 3639 4095 4694 5044 5529 5867 5973 6086 5818

non Residential 2011 2216 2374 2553 2615 2676 2737 2797 2857 2916 2975

Civil 2697 2946 2725 3189 3469 3639 3561 4008 3243 3360 3408

Total 7901 8967 8738 9838 10778 11359 11827 12672 12072 12361 12200

13

AnZSCo assigns an occupation to one of five skill levels.

A skill level is based on the range and complexity of tasks performed in a particular role.

Generally, a skill level is measured by the level or amount of required formal education and training, on-the-job training, and previous experience.

the greater the range and complexity of the tasks, the higher the skill level of an occupation. Skill level does not relate to the qualifications obtained by an individual, but to the range and complexity of the tasks they do at work.

Appendix2:AustralianandNewZealandStandardClassificationofOccupations(ANZSCO)

AnZSCo Skill level formal education and training experience and on-job training

AnZSCo Skill level 1 normally a bachelor degree or higher qualification At least five years of relevant experience may substitute for the formal qualification. In some instances relevant experience and/or on-the-job training may be required in addition to the formal qualification

AnZSCo Skill level 2 nZ register Diploma At least three years of relevant experience may substitute for the formal qualifications listed. In some instances relevant experience and/or on-the-job training may be required in addition to the formal qualification.

AnZSCo Skill level 3 nZ register level 4 qualification At least three years of relevant experience may substitute for the formal qualifications listed above. In some instances relevant experience and/or on-the-job training may be required in addition to the formal qualification.

AnZSCo Skill level 4 nZ register level 2 or 3 qualification At least one year of relevant experience may substitute for the formal qualifications listed above. In some instances relevant experience and/or on-the-job training may be required in addition to the formal qualification.

AnZSCo Skill level 5 nZ register level 1 qualification Compulsory secondary education For some occupations a short period of on-the-job training may be required in addition to or instead of the formal qualification. In some instances, no formal qualification or on-the-job training may be required

refer to: 1220.0 - AnZSCo - Australian and new Zealand Standard Classification of occupations, 2013, version 1.2 available at http://www.abs.gov.au/ausstats/[email protected]/lookup/1220.0Chapter32013,%20version%201.2

14

Aworkinggroupcomprisingofconstructionsectorbusinesses(includingHawkins,Dominion Constructors, naylor love Construction and Fletcher Construction – Building andInteriors)wereinvolvedthroughouttheACIOMcreationprocesstoprovideexpertindustry knowledge and advice on inputs and sense check outputs. An industry labour profile was significantly refined through the working group process through inputs relating to crew structure, labour cost rates and adoption of an industry standard methodology to disaggregate construction projects into their component parts for ease of analysis.

Thetop62occupations(atthe4digitANZSCOlevel)intheC&Iindustryprofilederivedfrom Census 2013 provided the basis of crew mix. Some of these occupations were disaggregatedfurther(to6digitlevels)tobettercaptureandreflectconstructionindustryviews of key occupations.

Current and anticipated construction and infrastructure work programmes contribute to a snapshot of the economy and provide a robust view of the next 5 years, and a suitable view out to 10 years of forecast activity but beyond this technological and building practice changesaresuchthatitwouldnolongerbeasrelevant.Theseworkprogrammes(whichformaninputtothemodel)canberevisedtoreflectthedynamicnatureofinvestmentactivity that drives the sector.

this information supported the development of the Auckland Construction and InfrastructureOccupationsModel(ACIOM).ACIOMisanextensiontotheAucklandeconomic Futures model used by Auckland Council. the ACIom translates estimates of total employment growth generated by the economic Futures model and the projections of industry activity into estimates of growth in each occupation.

the economic Futures model takes a multi-regional view of the Auckland economy, which means it places Auckland within the national context and provides a view of the future to 2036. the ACIom modelling process has been limited to provide a 10 year view with rolling annual labour totals for each 6 month interval. this enables good confidence in a 5 year key occupations outlook, and the 10 year outlook providing a more general indication of where the industry is heading.

Appendix 3: Development and Conceptual Structure of Auckland Construction and Infrastructure OccupationModel(ACIOM)

ACIoM

Inputs outputs

Auckland economicfutures Model

Auckland occupations

Profile

C&I occupations

Profile

C&I Sector

key occupationsemployment outlook

C&I specific inputs• Current and future work programmes- Residential- Non Residential- Civil• Future change• Productivity changes

Standard inputs• Population growth• Export projects• Fixed capital formation• Productivity changes

outputs by year• Gross output ($m)• Value added or GDP ($m)• Employment

15

1. C&I = construction and infrastructure

2. this growth profile does not take into account current demand or demand due to attrition from the existing workforce. See Appendix 3 for an overview of the Auckland ConstructionandInfrastructureOccupationModel(ACIOM)

3. employment growth based on ACIom. See Appendix 3 for an overview of the Auckland ConstructionandInfrastructureOccupationModel(ACIOM)

4. Briefdescriptionofkey:(seeAppendix2forfulldescriptionofANZSCOskilllevel)

Skill level 1: Bachelors degree or equivalent experience Skill level 2: nZ register Diploma or similar Skill level 3: nZ register level 4 qualification or similar Skill level 4: nZ register level 2 or 3 qualification or similar Skill level 5: nZ register level 1 qualification or similar

5. these two occupations were disaggregated from the single construction manager category. the project builder subcategory requires further explanation. many existingprojectbuildershavecompletedtradesqualifications(NZCensus,2013).the AnZSCo definition of Project Builder is “plans, organises, directs, controls and coordinates the construction, alteration and renovation of dwellings and other buildings, and the physical and human resources involved in the building process. registration or licensing is required. At least five years of relevant experience may substitute for the formal qualification.”

6. occupation outlook report, 2014, mBIe forecasts 2.6% per year between 2011-2016.

7. See for example:

http://www.immigration.govt.nz/nr/rdonlyres/89185A40-27D3-41F4-84Be-30129920411D/0/ISSlmar2014.pdf

http://www.immigration.govt.nz/nr/rdonlyres/063eCB35-F5D5-44D8-8325-7041A727A9D5/0/InZ1093.pdf

http://www.seek.co.nz/investor/employment-index

Appendix 4: notes

16

PrePared for: Auckland Construction Sector on behalf of Construction and Infrastructure Sponsor Group. June 2014

Workforce Skills Roadmap for Auckland Construction Sector (2013-2018). PrelImInAry rePort

construction and infrastructure sponsor group

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