{"id":5086,"date":"2026-02-20T03:12:18","date_gmt":"2026-02-20T03:12:18","guid":{"rendered":"https:\/\/apac.hubexo.com\/?post_type=resource&#038;p=5086"},"modified":"2026-06-23T04:26:04","modified_gmt":"2026-06-23T04:26:04","slug":"nz-construction-outlook-2026-what-leaders-are-saying","status":"publish","type":"resource","link":"https:\/\/apac.hubexo.com\/th\/resource\/nz-construction-outlook-2026-what-leaders-are-saying\/","title":{"rendered":"New Zealand\u2019s Construction Outlook 2026: What Leaders Are Saying"},"content":{"rendered":"<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"965\" height=\"584\" src=\"https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/26.png\" alt=\"New Zealand Construction Outlook Panel 2026\" class=\"wp-image-6072\" srcset=\"https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/26.png 965w, https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/26-300x182.png 300w, https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/26-768x465.png 768w, https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/26-18x12.png 18w, https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/26-600x363.png 600w\" sizes=\"auto, (max-width: 965px) 100vw, 965px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">New Zealand\u2019s construction sector is heading into 2026 in a period of reset rather than rebound\u00a0and continues to sit in a slump. After several years of cost escalation,\u00a0labour\u00a0shortages and financial tightening, the industry is\u00a0stabilising\u2014but cautiously. The focus has shifted from chasing volume to\u00a0operating\u00a0with greater discipline,\u00a0selectivity\u00a0and\u00a0delivery\u00a0confidence.\u00a0<br><br>Those themes were unpacked during\u00a0<a href=\"https:\/\/hubs.ly\/Q043Xq7k0\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Hubexo\u2019s\u00a0Construction Outlook Webinar for New Zealand<\/strong><\/a>, where leaders from development, construction, industry\u00a0bodies\u00a0and technology explored what the national pipeline is\u00a0signalling\u00a0as the sector looks ahead.\u00a0<br><br>Panellists\u00a0included:\u00a0\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Guy Randall, Chief Executive at&nbsp;Wolfbrook<\/li>\n\n\n\n<li>Leonard Gardner, Director at Fosters<\/li>\n\n\n\n<li>Kirsten Magnusson, Chief Executive of Building Institute Aotearoa<\/li>\n\n\n\n<li>Ashleigh Porter, President APAC at&nbsp;Hubexo.&nbsp;&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The discussion coincided with the release of\u00a0<a href=\"https:\/\/hubs.ly\/Q043Xp_J0\" target=\"_blank\" rel=\"noreferrer noopener\">Hubexo\u2019s Construction Outlook for 2026.<\/a>\u00a0The\u00a0report\u00a0draws on\u00a0Hubexo\u2019s\u00a0national project pipeline data from its\u00a0<a href=\"https:\/\/hubs.ly\/Q043Xqfn0\" target=\"_blank\" rel=\"noreferrer noopener\">LeadManager<\/a>\u00a0platform,\u00a0a\u00a0Sentiment\u00a0Survey\u00a0and industry interviews to track activity across residential, commercial and hospitality,\u00a0community\u00a0and public buildings, industrial,\u00a0infrastructure and transport,\u00a0and\u00a0energy\u00a0and\u00a0resources\u00a0sectors.\u00a0<br><br><strong>\ud83c\udfa5 Missed the live session? The\u00a0webinar\u00a0recording is now\u00a0<\/strong><a href=\"https:\/\/hubs.ly\/Q043Xq7x0\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>available on demand via Hubexo<\/strong><\/a>\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Sentiment: A reset, not a rebound<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This year\u2019s data points to a market finding its footing, not regaining speed. Volatility is easing, but confidence\u00a0remains\u00a0measured, as firms adjust to a leaner, more disciplined operating environment.\u00a0<br><br>Early-stage activity has edged upward, driven\u00a0largely by\u00a0previously stalled projects being retested rather than new demand entering the system. The pipeline is narrower and more selective, with feasibility scrutiny intensifying, particularly across residential projects. Deferrals have\u00a0stabilised, but abandonment rates\u00a0remain\u00a0elevated, underscoring the pressure on\u00a0delivery\u00a0certainty.\u00a0<br><br>\u201cNew Zealand is not in a bounce-back period\u201d,\u00a0Porter said. \u201cWhat\u00a0we\u2019re\u00a0in right now is a reset. After cost escalation,\u00a0labour\u00a0shortages\u00a0and tightening finance, the industry is being forced into a more disciplined operating model.\u00a0\u00a0<br><br>\u201cThe mood is cautious, but steady. Firms are\u00a0consolidating\u00a0rather than expanding, and\u00a0prioritising\u00a0delivery confidence\u00a0over growth\u00a0for growth\u2019s sake.\u201d\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Development: Selectivity, regional&nbsp;divergence&nbsp;and resilience<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For developers, 2025 tested both strategy and stamina. Conditions remained uneven across the country, with clear regional divergence shaping where projects could realistically\u00a0proceed.\u00a0<br><br>Christchurch-based\u00a0Wolfbrook\u00a0continued to deliver through the downturn, but success within the residential sector is increasingly\u00a0dependent\u00a0on sharper due diligence, tighter product-market fit and a disciplined read on regional demand. Southern markets have shown greater momentum, while other regions\u00a0remain\u00a0highly price-sensitive and competitive.\u00a0<br><br>Looking ahead, uncertainty around interest rates, policy settings and the election cycle\u00a0continues\u00a0to\u00a0weigh on\u00a0confidence. For developers, the challenge in 2026 is not\u00a0demand\u00a0itself, but managing volatility while holding teams,\u00a0capital\u00a0and delivery capability together.\u00a0<br><br>\u201cWe\u2019re\u00a0trading through what is\u00a0arguably the\u00a0worst recession since 1991, and it just takes more work now\u2014more due diligence, more analysis, more marketing, more focus on product-market fit\u201d, Randall said.\u00a0\u00a0<br><br>\u201cDemand is there, but\u00a0it\u2019s\u00a0highly regional and extremely price sensitive, so you\u00a0have to\u00a0be sharper about where you play and what you deliver.\u201d\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Construction: Holding capability through the cycle<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For contractors, the past year has been about endurance rather than growth, as procurement shifted toward tender-heavy models and away from the collaborative ECI approaches many builders rely on to manage risk and value.<br><br>Fosters,\u00a0operating\u00a0across the Waikato and Bay of Plenty, chose to\u00a0retain\u00a0its workforce through the downturn, treating people and institutional knowledge as long-term assets. While cost escalation has eased, particularly in industrial construction, Gardner warned that reduced industry capacity could quickly reignite inflation as demand returns.\u00a0\u00a0<br><br>The focus for 2026\u00a0for builders\u00a0is on value creation through early engagement,\u00a0transparency,\u00a0and\u00a0program-based delivery, particularly across government and institutional work.\u00a0<br><br>\u201cWe worked incredibly hard in 2025 just to stand still\u201d, Gardner said.\u00a0\u201cWe made a conscious decision to hold our team together, because people and institutional knowledge are strategic assets.\u00a0\u00a0<br><br>\u201cThe risk is that capacity has left the system, and when demand comes back, cost pressure will return very quickly.\u201d\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>People and capability: A fragile equilibrium<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">From an industry-wide perspective, 2025 was marked by pressure and uncertainty, particularly for businesses\u00a0operating\u00a0outside the top tier of the market.\u00a0<br><br>With fewer projects flowing at any one time, workforce mobility and retention have become critical challenges. Capability is increasingly concentrated around large regional infrastructure and health projects, raising questions about how firms adapt as work shifts geographically.\u00a0<br><br>For the Building Institute Aotearoa, the priority moving into 2026 is supporting leadership capability,\u00a0maintaining\u00a0sector-wide\u00a0connection,\u00a0and helping businesses navigate what is expected to be a\u00a0\u201clumpy\u201d\u00a0recovery.\u00a0<br><br>\u201cFor many of our members, 2025 was a year of pressure, uncertainty and survival rather than growth\u201d,\u00a0Magnusson said.\u00a0<br><br>\u201cWith fewer projects flowing,\u00a0retaining\u00a0people and capability has become critical, especially as work shifts regionally and talent continues to leave the country.\u201d\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Innovation: Deliberate adoption over hype<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Across the panel, technology was framed not as a cure-all, but as a practical lever in a constrained market. Interest in digital tools is high, but adoption\u00a0remains\u00a0uneven.\u00a0<br><br>\u201cWhat we\u2019re finding is that digital capability isn\u2019t a standalone role\u00a0anymore,\u00a0it runs across every career pathway\u201d,\u00a0Magnusson said.\u00a0<br><br>\u201cWith AI we\u2019re seeing materially stronger tender quality, tighter and more concise submissions, faster evaluations and quicker approvals but as always, the output is only as good as the input\u201d.\u00a0<br><br>Where uptake is occurring, it is most visible at the\u00a0front\u00a0end of\u00a0projects:\u00a0feasibility,\u00a0planning\u00a0and procurement,\u00a0where predictability and risk reduction\u00a0carry\u00a0the most value. The emphasis is on tools that reduce friction, sharpen decision-making and support\u00a0delivery\u00a0certainty, rather than novelty for its own sake.\u00a0<br><br>Porter said New Zealand\u2019s approach to technology is pragmatic, with adoption driven by evidence rather than promise.\u00a0<br><br>\u201cTechnology is no longer\u00a0innovation\u00a0for its own sake.\u00a0It\u2019s\u00a0being used to respond to pressure\u201d,\u00a0Porter said.\u00a0\u201cAdoption follows proof, not promise\u201d.\u00a0<br>\u00a0<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Explore the latest pipeline data and industry insights in&nbsp;Hubexo\u2019s<\/strong><a href=\"https:\/\/www.bcicentral.com\/the-bci-construction-league\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>&nbsp;<\/strong><\/a><a href=\"https:\/\/hubs.ly\/Q043XqSc0\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Construction Outlook<\/strong><\/a><strong>.&nbsp;Take a deeper dive by downloading the report now.<\/strong>&nbsp;<\/h4>","protected":false},"excerpt":{"rendered":"<p>New Zealand\u2019s construction sector is heading into 2026 in a period of reset rather than rebound\u00a0and continues to sit in a slump. After several years of cost escalation,\u00a0labour\u00a0shortages and financial tightening, the industry is\u00a0stabilising\u2014but cautiously. The focus has shifted from chasing volume to\u00a0operating\u00a0with greater discipline,\u00a0selectivity\u00a0and\u00a0delivery\u00a0confidence.\u00a0 Those themes were unpacked during\u00a0Hubexo\u2019s\u00a0Construction Outlook Webinar for New Zealand, [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":6072,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"resource-category":[21],"class_list":["post-5086","resource","type-resource","status-publish","format-standard","has-post-thumbnail","hentry","resource-category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/apac.hubexo.com\/th\/wp-json\/wp\/v2\/resource\/5086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/apac.hubexo.com\/th\/wp-json\/wp\/v2\/resource"}],"about":[{"href":"https:\/\/apac.hubexo.com\/th\/wp-json\/wp\/v2\/types\/resource"}],"author":[{"embeddable":true,"href":"https:\/\/apac.hubexo.com\/th\/wp-json\/wp\/v2\/users\/13"}],"version-history":[{"count":4,"href":"https:\/\/apac.hubexo.com\/th\/wp-json\/wp\/v2\/resource\/5086\/revisions"}],"predecessor-version":[{"id":6114,"href":"https:\/\/apac.hubexo.com\/th\/wp-json\/wp\/v2\/resource\/5086\/revisions\/6114"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apac.hubexo.com\/th\/wp-json\/wp\/v2\/media\/6072"}],"wp:attachment":[{"href":"https:\/\/apac.hubexo.com\/th\/wp-json\/wp\/v2\/media?parent=5086"}],"wp:term":[{"taxonomy":"resource-category","embeddable":true,"href":"https:\/\/apac.hubexo.com\/th\/wp-json\/wp\/v2\/resource-category?post=5086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}