{"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":"2026-02-20T03:32:01","modified_gmt":"2026-02-20T03:32:01","slug":"nz-construction-outlook-2026-what-leaders-are-saying","status":"publish","type":"resource","link":"https:\/\/apac.hubexo.com\/zh\/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=\"2560\" height=\"1280\" src=\"https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/24-scaled.png\" alt=\"\" class=\"wp-image-5089\" srcset=\"https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/24-scaled.png 2560w, https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/24-300x150.png 300w, https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/24-1024x512.png 1024w, https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/24-768x384.png 768w, https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/24-1536x768.png 1536w, https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/24-2048x1024.png 2048w, https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/24-18x9.png 18w, https:\/\/apac.hubexo.com\/wp-content\/uploads\/2026\/02\/24-600x300.png 600w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p>New Zealand\u2019s construction sector is heading into 2026 in a period of reset rather than rebound&nbsp;and continues to sit in a slump. After several years of cost escalation,&nbsp;labour&nbsp;shortages and financial tightening, the industry is&nbsp;stabilising\u2014but cautiously. The focus has shifted from chasing volume to&nbsp;operating&nbsp;with greater discipline,&nbsp;selectivity&nbsp;and&nbsp;delivery&nbsp;confidence.&nbsp;<\/p>\n\n\n\n<p>Those themes were unpacked during&nbsp;<a href=\"https:\/\/hubs.ly\/Q043Xq7k0\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Hubexo\u2019s&nbsp;Construction Outlook Webinar for New Zealand<\/strong><\/a>, where leaders from development, construction, industry&nbsp;bodies&nbsp;and technology explored what the national pipeline is&nbsp;signalling&nbsp;as the sector looks ahead.&nbsp;<\/p>\n\n\n\n<p>Panellists&nbsp;included:&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Guy Randall, Chief Executive at\u00a0Wolfbrook<\/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\u00a0Hubexo.\u00a0\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<p>The discussion coincided with the release of&nbsp;<a href=\"https:\/\/hubs.ly\/Q043Xp_J0\" target=\"_blank\" rel=\"noreferrer noopener\">Hubexo\u2019s Construction Outlook for 2026.<\/a>&nbsp;The&nbsp;report&nbsp;draws on&nbsp;Hubexo\u2019s&nbsp;national project pipeline data from its&nbsp;<a href=\"https:\/\/hubs.ly\/Q043Xqfn0\" target=\"_blank\" rel=\"noreferrer noopener\">LeadManager<\/a>&nbsp;platform,&nbsp;a&nbsp;Sentiment&nbsp;Survey&nbsp;and industry interviews to track activity across residential, commercial and hospitality,&nbsp;community&nbsp;and public buildings, industrial,&nbsp;infrastructure and transport,&nbsp;and&nbsp;energy&nbsp;and&nbsp;resources&nbsp;sectors.&nbsp;<br>&nbsp;<\/p>\n\n\n\n<p class=\"has-text-align-left\"><strong>\ud83c\udfa5 Missed the live session? The&nbsp;webinar&nbsp;recording is now&nbsp;<\/strong><a href=\"https:\/\/hubs.ly\/Q043Xq7x0\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>available on demand via Hubexo<\/strong><\/a>&nbsp;<\/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>This year\u2019s data points to a market finding its footing, not regaining speed. Volatility is easing, but confidence&nbsp;remains&nbsp;measured, as firms adjust to a leaner, more disciplined operating environment.&nbsp;<\/p>\n\n\n\n<p>Early-stage activity has edged upward, driven&nbsp;largely by&nbsp;previously 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&nbsp;stabilised, but abandonment rates&nbsp;remain&nbsp;elevated, underscoring the pressure on&nbsp;delivery&nbsp;certainty.&nbsp;<\/p>\n\n\n\n<p>\u201cNew Zealand is not in a bounce-back period\u201d,&nbsp;Porter said. \u201cWhat&nbsp;we\u2019re&nbsp;in right now is a reset. After cost escalation,&nbsp;labour&nbsp;shortages&nbsp;and tightening finance, the industry is being forced into a more disciplined operating model.&nbsp;&nbsp;<\/p>\n\n\n\n<p>\u201cThe mood is cautious, but steady. Firms are&nbsp;consolidating&nbsp;rather than expanding, and&nbsp;prioritising&nbsp;delivery confidence&nbsp;over growth&nbsp;for growth\u2019s sake.\u201d&nbsp;<\/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>For developers, 2025 tested both strategy and stamina. Conditions remained uneven across the country, with clear regional divergence shaping where projects could realistically&nbsp;proceed.&nbsp;<\/p>\n\n\n\n<p>Christchurch-based&nbsp;Wolfbrook&nbsp;continued to deliver through the downturn, but success within the residential sector is increasingly&nbsp;dependent&nbsp;on sharper due diligence, tighter product-market fit and a disciplined read on regional demand. Southern markets have shown greater momentum, while other regions&nbsp;remain&nbsp;highly price-sensitive and competitive.&nbsp;<\/p>\n\n\n\n<p>Looking ahead, uncertainty around interest rates, policy settings and the election cycle&nbsp;continues&nbsp;to&nbsp;weigh on&nbsp;confidence. For developers, the challenge in 2026 is not&nbsp;demand&nbsp;itself, but managing volatility while holding teams,&nbsp;capital&nbsp;and delivery capability together.&nbsp;<\/p>\n\n\n\n<p>\u201cWe\u2019re&nbsp;trading through what is&nbsp;arguably the&nbsp;worst 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.&nbsp;&nbsp;<\/p>\n\n\n\n<p>\u201cDemand is there, but&nbsp;it\u2019s&nbsp;highly regional and extremely price sensitive, so you&nbsp;have to&nbsp;be sharper about where you play and what you deliver.\u201d&nbsp;<\/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>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.&nbsp;<\/p>\n\n\n\n<p>Fosters,&nbsp;operating&nbsp;across the Waikato and Bay of Plenty, chose to&nbsp;retain&nbsp;its 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.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The focus for 2026&nbsp;for builders&nbsp;is on value creation through early engagement,&nbsp;transparency,&nbsp;and&nbsp;program-based delivery, particularly across government and institutional work.&nbsp;<\/p>\n\n\n\n<p>\u201cWe worked incredibly hard in 2025 just to stand still\u201d, Gardner said.&nbsp;\u201cWe made a conscious decision to hold our team together, because people and institutional knowledge are strategic assets.&nbsp;&nbsp;<\/p>\n\n\n\n<p>\u201cThe risk is that capacity has left the system, and when demand comes back, cost pressure will return very quickly.\u201d&nbsp;<\/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>From an industry-wide perspective, 2025 was marked by pressure and uncertainty, particularly for businesses&nbsp;operating&nbsp;outside the top tier of the market.&nbsp;<\/p>\n\n\n\n<p>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.&nbsp;<\/p>\n\n\n\n<p>For the Building Institute Aotearoa, the priority moving into 2026 is supporting leadership capability,&nbsp;maintaining&nbsp;sector-wide&nbsp;connection,&nbsp;and helping businesses navigate what is expected to be a&nbsp;\u201clumpy\u201d&nbsp;recovery.&nbsp;<\/p>\n\n\n\n<p>\u201cFor many of our members, 2025 was a year of pressure, uncertainty and survival rather than growth\u201d,&nbsp;Magnusson said.&nbsp;<\/p>\n\n\n\n<p>\u201cWith fewer projects flowing,&nbsp;retaining&nbsp;people and capability has become critical, especially as work shifts regionally and talent continues to leave the country.\u201d&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Innovation: Deliberate adoption over hype<\/strong>&nbsp;<\/h2>\n\n\n\n<p>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&nbsp;remains&nbsp;uneven.&nbsp;<\/p>\n\n\n\n<p>\u201cWhat we\u2019re finding is that digital capability isn\u2019t a standalone role&nbsp;anymore,&nbsp;it runs across every career pathway\u201d,&nbsp;Magnusson said.&nbsp;<\/p>\n\n\n\n<p>\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.&nbsp;<\/p>\n\n\n\n<p>Where uptake is occurring, it is most visible at the&nbsp;front&nbsp;end of&nbsp;projects:&nbsp;feasibility,&nbsp;planning&nbsp;and procurement,&nbsp;where predictability and risk reduction&nbsp;carry&nbsp;the most value. The emphasis is on tools that reduce friction, sharpen decision-making and support&nbsp;delivery&nbsp;certainty, rather than novelty for its own sake.&nbsp;<\/p>\n\n\n\n<p>Porter said New Zealand\u2019s approach to technology is pragmatic, with adoption driven by evidence rather than promise.&nbsp;<\/p>\n\n\n\n<p>\u201cTechnology is no longer&nbsp;innovation&nbsp;for its own sake.&nbsp;It\u2019s&nbsp;being used to respond to pressure\u201d,&nbsp;Porter said.&nbsp;\u201cAdoption follows proof, not promise\u201d.&nbsp;<br>&nbsp;<\/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&nbsp;and continues to sit in a slump. After several years of cost escalation,&nbsp;labour&nbsp;shortages and financial tightening, the industry is&nbsp;stabilising\u2014but cautiously. The focus has shifted from chasing volume to&nbsp;operating&nbsp;with greater discipline,&nbsp;selectivity&nbsp;and&nbsp;delivery&nbsp;confidence.&nbsp; Those themes were unpacked during&nbsp;Hubexo\u2019s&nbsp;Construction Outlook Webinar for New Zealand, [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":5089,"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\/zh\/wp-json\/wp\/v2\/resource\/5086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/apac.hubexo.com\/zh\/wp-json\/wp\/v2\/resource"}],"about":[{"href":"https:\/\/apac.hubexo.com\/zh\/wp-json\/wp\/v2\/types\/resource"}],"author":[{"embeddable":true,"href":"https:\/\/apac.hubexo.com\/zh\/wp-json\/wp\/v2\/users\/13"}],"version-history":[{"count":2,"href":"https:\/\/apac.hubexo.com\/zh\/wp-json\/wp\/v2\/resource\/5086\/revisions"}],"predecessor-version":[{"id":5091,"href":"https:\/\/apac.hubexo.com\/zh\/wp-json\/wp\/v2\/resource\/5086\/revisions\/5091"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apac.hubexo.com\/zh\/wp-json\/wp\/v2\/media\/5089"}],"wp:attachment":[{"href":"https:\/\/apac.hubexo.com\/zh\/wp-json\/wp\/v2\/media?parent=5086"}],"wp:term":[{"taxonomy":"resource-category","embeddable":true,"href":"https:\/\/apac.hubexo.com\/zh\/wp-json\/wp\/v2\/resource-category?post=5086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}