Workforce Skills Roadmap for Auckland Construction Sector (2013-2018) - Construction and Infrastructure Sponsor Group
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Construction and Infrastructure
Sponsor Group
Workforce Skills Roadmap for Auckland Construction Sector (2013-2018)
Preliminary Report
Prepared for: Auckland Construction Sector on behalf of Construction and Infrastructure Sponsor Group June 2014Sponsor Group
Sponsor Group – Primary Contributors: Secondary Contributors:
Building and Construction ITO
Competenz
Infrastructure ITO
Manukau Institute of Technology
Tertiary Education Commission
Skills Organisation
Unitec Institute of Technology
Building and Construction Productivity Partnership
Ministry of Business, Innovation and Employment
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.
Companion document to:
Auckland’s Construction and Infrastructure Labour Requirements: 2013-2023
Commissioned report prepared by Market Economics Ltd.Purpose of this Document
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.
1Employment Growth in Construction and Infrastructure Occupations in Auckland
“Wall of Work”
Unprecedented levels of growth in building
and construction are forecast in the immediate significant
growth
future in New Zealand, dominated by Auckland.
This increase in
construction activity
drives total net growth of
11,800
Auckland has the largest 32,000 Direct sector
share of this growth – in construction and growth
44%
approx
increase
infrastructure occupations
across the Auckland economy.
Total growth
32,000
in demand to 2018
(100%)
20,200
Wider economy
New house building more than Infrastructure investment growth
doubles increases
over the next decade, led by roading, electricity and water
including an increase in
apartments
Skill level totals
70%
of all residential growth during
69%
of total employment growth is
2013-2023 occurs in the first driven by residential
5 years construction
Page 2 to be viewed
with page 3
2Employment Growth Summary
occupations by formal training and/or experience
See Appendix 2 for
ANZSCO skill levels
Bachelors Degree NZ Register Diploma NZ Register Level 4 NZ Register Level 2 or 3 NZ Register Level 1
or equivalent experience or similar Qualification or similar Qualification or similar Qualification or similar on page 14
4,950 (15%) 450 (1%) 4,000 (12%) 550 (2%) 1,850 (6%)
See more detail on
– Project builders – Architectural building & survey – Carpenters & joiners – Truck drivers – Commercial cleaners direct C & I sector
– Construction project managers technicians – Electricians – Structural steel & construction – Plumbing & building labourers occupations on pages
– Contract programme & contract workers
– Civil engineering professionals
administrators
– Plumbers
...
– Specialised plant operators ...
– Other labourers 8 and 9.
...
– Industrial mechanical production – Painting trades
...
engineers
...
– Other engineering technicians
6,100 (19%) 2,000 (6%) 4,000 (13%) 4,100 (13%) 4,000 (13%)
See more detail on
wider Auckland
– Policy & planning managers – Contract programme & contract – Motor mechanics – Truck drivers – Other labourers
administrators economy C & I
– Project builders – Metal & steel workers – Supply, despatch & transport – Commercial cleaners
– Architectural building & survey logistics clerks occupations on pages
– Civil engineering professionals
technicians ...
– Carpenters & joiners
– Machine operators ...
– Plumbing & building labourers
10 and 11.
...
– Architects & landscape architects
...
– Other engineering technicians
...
– Specialised plant operators
See 2018 totals in
11,050 (34%) 2,450 (7%) 8,000 (25%) 4,650 (15%) 5,850 (19%) graph on page 7.
1 2 3 4 5
anzsco skill levels
Page 3 to be viewed
with page 2
3Building and Construction Pipeline
National Pipeline Auckland Pipeline
national value of building and construction historic and forecast forecast value of construction – auckland
35000 14000
30000 $
23% 12000
44%
25000
10000
$ millions
20000
$ millions
8000
15000
6000
10000
4000
5000
2000
0
72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 0
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Years
Source: Pacifecon/BRANZ Res Non Res Total Year
Civil Non Residential Residential
The National Construction Pipeline forecasts unprecedented levels of demand for building and In Auckland, high levels of construction sector pipeline growtha build to peak levels 2018/2019 –
construction in the immediate future – 23% above the last construction peak in 2007 and 44% a 44% increase in activity on 2013 levels. Contributing to this ‘wall of work’ is:
above 2013 levels. Residential construction markets are leading this growth.
• s trong residential growth, with new house building more than doubling over the next decade.
Auckland has the largest share of forecast growth levels for building and construction Key features include an increase in apartments and medium density housing, and around 70%
in New Zealand. of residential growth occurring in the first 5 years
• remedial work including earthquake strengthening and leaky buildings
• increasing value of non-residential consents
• a large number of civil projects underway or being accelerated (up 35% on 2013 levels) led by
roading, electricity and water
a - see Appendix 1
4Employment in the Construction Sector in Auckland
Auckland’s construction sector is a major source of employment in the region. Around 49,000 In the last five years, overall employee numbers have declined following the reduction and
employees and self-employed business owners are currently employed in the construction consolidation of the construction sector (2008-2010). Notably, residential and construction
sector, accounting for over 6.5% of total employment in Auckland. In 2013, the construction services had the most significant workforce decline during this period, compared with the
sector had over 16,000 businesses. positive employee growth trend maintained in heavy and civil engineering.
Over 60% of businesses in the sector only have a single self-employed working proprietor
(and no other employees), making up 30% of all workers in the sector. The majority of these
businesses 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.
Construction Sector Employee (only) Count by Region
The following figures are included to give indications of employment trends for employees only, they do not capture self employed owners in the sector
building construction heavy & civil engineering consTruction services
9,000 10,000 25,000
8,000 9,000
7,000 8,000 20,000
7,000
6,000
employees
employees
6,000 15,000
employees
5,000
5,000
4,000
4,000 10,000
3,000
3,000
2,000 2,000 5,000
1,000 1,000
0 0 0
03 05 07 09 11 13 03 05 07 09 11 13 03 05 07 09 11 13
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
Year Year Year
Auckland Canterbury Wellington Source: Occupation Outlook, 2014, MBIE, p6
5Employment Growth in Construction and Infrastructure Occupations in Auckland (2013-2018)
Employment in construction and infrastructure (C & I)a occupations will be strong over the 162,000 construction and infrastructure occupations are located in a range of sectors across
next several years as the known and planned projects build to peak levels in 2018/2019. the Auckland economy, with 49,000 of these directly employed in the C & I sector.
The pipeline of forecast national and regional construction projects and broader economic Based on expanding construction activity, the total employment in construction and
drivers influencing the sector provide a basis for developing a projection of the skilled infrastructure occupations in Auckland is anticipated to increase by 32,000c.
workforce for the sectorb.
Around 11,800c of this employment growth will occur directly in the construction sector.
250,000
cumulative employment growth 2013-2023
45,000
200,000 194,000
Number of employees
40,000
162,000
35,000 11,800 increase
150,000
Employment growth
in sector
25,000
20,000 20,200 increase
100,000
in wider economy
15,000
10,000 50,000
5,000
*0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2018
Year Year
Employment directly in construction sector Employment in wider Auckland economy
Civil construction related employment
Non Residential construction related employment
Residential construction related employment
Share of related employment growth due
to pipeline forecasts across subsectors
Civil 22%
Non-residential 9%
Residential construction activity accounts
for around 69% of all employment growth
(approx. 23,000 workers out of the
a. S ee note 1, Appendix 4 32,000 in construction and infrastructure Residential 69%
b. See note 2, Appendix 4 occupations).
c. See note 3, Appendix 4
* Growth additional to a baseline of existing employees in C & I occupations in the Auckland economy: 162,000
6Annual Employment Growth
The annual employment growth in the top 62 skilled construction and infrastructure Employment growth (2013-2018) by ANZSCO skill level
occupations reflects the timing and annual rate of growth of the pipeline of anticipated
In the first five years, the total 32,000 employment growth in construction and infrastructure
construction sector activity.
occupations in Auckland is comprised of:
Based on historical sector patterns, employment growth will be met, in part, by:
• 34% growth in skill level 1 occupations
• reallocation of existing capacity
• 32% growth across skill levels 2 and 3 occupations
• movement of workers across sub-sectors
• 34% growth across skill levels 4 and 5 occupations
• workers returning to the sector
• relocation of existing C&I workers to Auckland, and
• innovation relating to specific work tasks/processes
Further employment growth will be met by the recruitment of workers to the sector.
Cumulative employment growth (2013-2023) by anzsco skill level 5850 employees 19%
45000
5
11,050 employees 34%
40000
1
Employment growth (all economy)
35000
32,000
4650 employees 15%
4
5 year total
30000
25000
20000
15000 2 2450 employees 7%
10000 8000 employees 25% 3
5000
baseline
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Skill level 1 Skill level 2 Skill level 3 Skill level 4 Skill level 5
Skill level 1 Skill level 2 Skill level 3 Skill level 4 Skill level 5
For brief description of skill level key: see Note 4, Appendix 4
7Occupation Growth (2013-2018)
0
200
400
600
800
1000
1200
3200
3400
3600
3800
* Project Builders
Skill level 1
Carpenters and Joiners
Commercial Cleaners
* See Note 5, Appendix 4
Electricians
* Construction Project Manager
Skill level 2
Plumbers
(by sub-sector pipeline)
Building and Plumbing Labourers
Painting Trades Workers
Other Miscellaneous Labourers
Skill level 3
Civil Engineering Professionals
Architectural, Building and Surveying Technicians
Plasterers
Contract, Program and Project Administrators
Skill level 4
Policy and Planning Managers
Roof Tilers
Electrical Distribution Trades Workers
Truck Drivers
Skill level 5
Structural Steel Construction Workers
Bricklayers and Stonemasons
Telecommunications Trades Workers
Floor Finishers
Wall and Floor Tilers
Concreters
Earthmoving Plant Operators
Glaziers
Other Mobile Plant Operators
Handypersons
Industrial, Mechanical and Production Engineers
Electrical Engineering Draftspersons and Technicians
Other Machine Operators
8
Electrical Engineers
Other Building and Engineering Technicians
Metal Fitters and Machinists
Cabinetmakers
Drillers, Miners and Shot Firers
Direct Construction Sector Employment Growth (2013-2018)
Other Stationary Plant Operators
Engineering Managers
Production Managers
Electronic Engineering Draftspersons and Technicians
Motor Mechanics
Sheetmetal Trades Workers
Structural Steel and Welding Trades Workers
Gardeners
Purchasing and Supply Logistics Clerks
Insulation and Home Improvement Installers
Paving and Surfacing Labourers
Supply and Distribution Managers
Technical Sales Representatives
Skilled labourers
Architects and Landscape Architects
Civil Engineering Draftspersons and Technicians
Key growth areas
Clay, Concrete, Glass, Stone Processing Machine Operators
Civil Pipeline Employment Growth
Industrial Spraypainters
Garden and Nursery Labourers
Building construction trades
Residential Pipeline Employment Growth
Total increase: 11,800
Freight and Furniture Handlers
Non Residential Pipeline Employment Growth
Forklift Drivers
Metal Casting, Forging and Finishing Trades Workers
Wood Machinists and Other Wood Trades Workers
Project management & administration
Engineering professionals & technicians
Paper and Wood Processing Machine Operators
Building installation & completion trades
Fencers
Geologists and Geophysicists
Other Engineering Professionals
Transport and Despatch Clerks
Timber and Wood Process Workers
with page 9
Page 8 to be viewed0
50
100
150
200
250
0
200
400
600
800
1,000
1,200
1,400
0
500
1,000
1,500
2,500
3,000
3,500
4,000
Carpenters and Joiners
Project Builder
with page 8
Electricians
skill level 3
skill level 2
skill level 1
Technicians
Construction
and Surveying
Plumbers Project Manager
Architectural, Building
Page 9 to be viewed
Painting Trades Workers Chief
Engineering
Professionals
Plasterers
Policy and
Program
Contract,
Planning
and Project
Roof Tilers
Managers
Electrical Distribution
Industrial,
Trades Workers
Mechanical and
Bricklayers and Production Engineers
Stonemasons
Telecommunications Electrical
Electrical
Trades Workers Engineers
Engineering
Floor FInishers
Engineering
Managers
Wall and Floor Tilers
Glaziers Production
Managers
project managers.
Other Building
and Engineering
Metal Fitters and Machinists
Supply and
Distribution
Cabinetmakers Managers
Motor Mechanics Techinical Sales
Representatives
Electronic
Engineering
Sheetmetal Trades Workers
Architects and
Structural Steel and Welding Landscape
Trades Workers Architects
construction services account for another 1200.
Gardeners Geologists and
Residential and commercial building will generate
employment for over 1200 carpenters and joiners.
Employment growth of 300 technicians and
draftspeople; 150 project support personnel.
Geophysicists
Metal Casting, Forging and
Electricians, plumbers/drainlayers/gasfitters and other
3500 project builders and 600 further construction
Finishing Trades Workers
Residential and commercial projects will employ over
Draftspersons
Other Engineering
Civil Engineering
Wood Machinists and Professionals
Other Wood Trades Workers
Growth: 4000
Growth: 450
Growth: 4950
9
0
100
200
300
400
500
600
700
800
900
0
20
40
60
80
100
120
140
160
Commercial Truck Drivers
Cleaners
skill level 5
skill level 4
Structural Steel
Construction
Workers
Building and
Plumbing Labourers Earthmoving
Plant Operators
Other Miscellaneous Other Mobile
Labourers Plant Operators
Other Machine
Operators
Concreters
Drillers, Miners and
Shot Firers
For brief description of skill level key, see Note 4, Appendix 4.
Handypersons Other Stationary
Plant Operators
Purchasing and
Paving and Supply Logistics
Surfacing Labourers Clerks
Insulation and Home
Improvement
Installers
Garden and Nursery
Comments relate to occupation employment growth directly in Construction sector.
Labourers Clay, Concrete, Glass
and Stone Processing
Machine Operators
Freight and Furniture Industrial
Handlers Spraypainters
Forklift Drivers
Direct Construction Sector Employment Growth (2013-2018): Occupations by ANZSCO Skill Level
Fencers
Paper and Wood
21% being structural and steel workers.
Porcessing Machine
employment for over 800 other skilled labourers.
Operators
Specialised plant operators and truck drivers
Timber and Wood
account for 50% of growth with an additional
In addition to over 800 commercial cleaners, increased
Process Workers Transport and
Despatch Clerks
Growth: 1850
Growth: 550Occupation Growth (2013-2018)
0
500
1000
1500
2000
3500
4000
4500
5000
*Project Builder
Skill level 1
Other Miscellaneous Labourers
Policy and Planning Managers
* See Note 5, Appendix 4
Carpenters and Joiners
*Commercial Cleaners
Skill level 2
Truck Drivers
Contract, Program and Project Administrators
Civil Engineering Professionals
Electricians
Skill level 3
Building and Plumbing Labourers
Motor Mechanics
Purchasing and Supply Logistics Clerks
Construction Project Manager
Skill level 4
Plumbers
Other Machine Operators
Architectural, Building and Surveying Technicians
Metal Fitters and Machinists
Skill level 5
Production Managers
Gardeners
Painting Trades Workers
Architects and Landscape Architects
Transport and Despatch Clerks
Supply and Distribution Managers
Garden and Nursery Labourers
Industrial, Mechanical and Production Engineers
Structural Steel and Welding Trades Workers
Other Building and Engineering Technicians
Earthmoving Plant Operators
Technical Sales Representatives
Plasterers
10
Telecommunications Trades Workers
Electrical Distribution Trades Workers
Forklift Drivers
Sheetmetal Trades Workers
Structural Steel Construction Workers
Cabinetmakers
Other Mobile Plant Operators
Handypersons
Electrical Engineers
Roof Tilers
Bricklayers and Stonemasons
Auckland Economy Employment Growth in C & I Occupations (2013-2018)
Freight and Furniture Handlers
Floor Finishers
D
Other Stationary Plant Operators
W
Engineering Managers
Other Engineering Professionals
irect C&I
Concreters
ider Economy
Electrical Engineering Draftspersons and Technicians
(Increase of 11,800)
(Increase of 20,200)
plant operators
Wall and Floor Tilers
Skilled labourers
Glaziers
Electronic Engineering Draftspersons and Technicians
Key growth areas
Insulation and Home Improvement Installers
Structural / steel trades
Clay, Concrete, Glass, Stone Processing Machine Operators
Paper and Wood Processing Machine Operators
Building construction trades
Total increase: 32,000
Metal Casting, Forging and Finishing Trades Workers
Truck drivers, motor mechanics,
Drillers, Miners and Shot Firers
Civil Engineering Draftspersons and Technicians
Industrial Spraypainters
Project management & administration
Engineering professionals & technicians
Timber and Wood Process Workers
Building installation & completion trades
Wood Machinists and Other Wood Trades Workers
Geologists and Geophysicists
Paving and Surfacing Labourers
Fencers
with page 11
Page 10 to be viewedAuckland Economy Employment Growth in C & I Occupations (2013-2018): By ANZSCO Skill Level
skill level 1 Employment growth of 11050, Wider economy: 6100, Constr. sector: 4950 skill level 4 Employment growth of 4650, Wider economy: 4100, Constr. sector: 550
5000 1600
4500
Relatively even employment growth in construction 1400 88% of employment growth is outside
4000
sector and wider economy. Growth of policy and 1200 construction sector. Growth associated with
3500
3000 planning management (1500), civil and other 1000 transport and logistics (2600), specialised plant
2500 engineering professionals (2000), additional growth 800 and machine operators (1000).
2000 600
1500 in project builders (1000).
1000 400
500 200
0 0
Project Builder
Policy and
Planning
Managers
Chief Engineering
Professionals
Construction
Project Manager
Production
Managers
Architects and
Landscape
Architects
Supply and
Distribution
Managers
Industrial,
Mechanical &
Production Engineers
Technical Sales
Representatives
Electrical
Engineers
Engineering
Managers
Other
Engineering
Professionals
Geologists and
Geophysicists
Truck Drivers
Purchasing & Supply
Logistics Clerks
Other Machine
Operators
Transport and
Despatch Clerks
Earthmoving Plant
Operators
Forklift Drivers
Structural Steel
Construction
Workers
Other Mobile Plant
Operators
Other Stationary
Plant Operators
Insulation and Home
Improvement
Installers
Clay, Concrete, Glass
and Stone Processing
Machine Operators
Paper and Wood
Porcessing Machine
Operators
Drillers, Miners and
Shot Firers
Industrial
Spraypainters
skill level 2 Employment growth of 2450, Wider economy: 2000, Constr. sector: 450 skill level 5 Employment growth of 5850, Wider economy: 4000, Constr. sector: 1850
1,400 3000
1,200 82% of employment growth is outside the 68% of employment growth is outside
2500
1,000 construction sector. Additional growth in construction sector. Increased employment
technicians (800) and contract and project 2000 for a range of skilled labourers (over 2000).
800
600 administration (1000). 1500
400 1000
200 500
0 0
Contract, Program Architectural, Building Other Building and Electrical Engineering Electronic Engineering Civil Engineering
Other
Miscellaneous
Labourers
Commercial
Cleaners
Building and
Plumbing
Labourers
Garden and
Nursery
Labourers
Handypersons
Freight and
Furniture
Handlers
Concreters
Timber and
Wood Process
Workers
Paving and
Surfacing
Labourers
Fencers
& Project and Surveying Engineering Draftspersons and Draftspersons and Draftspersons and
Administrators Technicians Technicians Technicians Technicians Technicians
skill level 3 Employment growth of 8000, Wider economy: 4000, Constr. sector: 4000
2,000
1,800 Equal employment growth in construction sector
1,600
and wider economy. Additional growth in building Direct C&I
1,400
1,200 related trades (1100), growth in motor mechanics Wider Economy
1,000 (800) and metal/steel trades workers (800).
800
600
400
200
0
Carpenters and
Joiners
Electricians
Motor Mechanics
Plumbers
Metal Fitters and
Machinists
Gardeners
Painting Trades
Workers
Structural Steel and Welding
Trades Workers
Plasterers
Telecommunications
Trades Workers
Electrical Distribution
Trades Workers
Sheetmetal Trades
Workers
Cabinetmakers
Roof Tilers
Bricklayers and
Stonemasons
Floor FInishers
Wall and Floor Tilers
Glaziers
Metal Casting, Forging and
Finishing Trades Workers
Wood Machinists and Other
Wood Trades Workers
For brief description of skill level key, see Note 4, Appendix 4.
Page 11 to be viewed
with page 10
11Employment Prospects
The employment prospects in the construction industry in Auckland are positive. Sector Occupations with strongest growth indications
The workforce in the Auckland construction sector is anticipated to increase at an annual Projected Growth (annual average) Next 5 years
rate of 4.8% per year between 2013-2018, higher than national growth forecastsa for
employment this sector. Project builders including Structural steel constructors
In a number of occupationsb, including construction project managers, project builders,
building project manager and
site foreman
6.0% (including scaffolding) 3.7%
electricians, quantity surveyors and scaffolders, there are immediate and longer term Construction Project Contract and project
employment opportunities as part of a wider range of career opportunities in construction
and infrastructure across the Auckland region.
Managers 6.0% administrators 3.6%
Carpenters and joiners Civil engineering professionals
5.4% including quantity surveyors
Architects, landscape architects
3.5%
Bricklayers, plasterers Machine and plant operators
4.9% including earthmoving and
mobile plant
3.5%
Clay and concrete machine Insulation installers
operators, concreters, paving
and surfacing labourers
4.7% 3.5%
4.4% 3.4%
Painting trades, glaziers, roof Construction and
tilers, plumbers infrastructure labourers
4.3% 3.3%
Building and plumbing Policy and planning managers
labourers
Electricians, electrical Technicians/draftsperson: Civil
distribution,
telecommunications trades
4.0% engineering, electrical, other
building and engineering
3.2%
Technicians: Architectural, Managers: Engineering,
4.0% 3.0%
building production, supply and
distribution Engineers: Electrical,
industrial mechanical, other
3.9% 3.0%
Commercial cleaners Sheetmetal workers, structural
steel and welding, metal fitters
a. S ee note 6, Appendix 4
b. See note 7, Appendix 4
12Appendix 1: Auckland’s Construction Pipeline
Auckland has the largest share of forecast levels of growth for building and construction The current pipeline scenario (as developed) is based on:
in New Zealand. Auckland’s construction sector is predicted to grow from $8.2bn in the
• R
esidential activity continuing to gain momentum as dwelling consent numbers (while
2012/13 year to $11.8bn in 2018/19 (a 44% increase) and on to $12.2bn by 2023 (48%
trending upwards) are still slightly below 2007 levels and consents for apartment blocks
higher than 2012/13).
have re-emerged. Residential growth is anticipated to further accelerate with the
Auckland’s construction sector pipeline has been calculated from a combination of data approval of Special Housing Areas.
sources including:
• N
on residential sector performance projections are based on a standard combination of
• actual expenditure and committed funding for work programmes scenario 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
• f orward work programmes drawn from plans from agencies such as NZTA and
fluctuate as significantly as residential consents they are well below 2007 levels.
Auckland Council
• Infrastructure growth in Auckland is led by strong commitment in roading (around
• assessments of current and planned residential building growth
50% of total investment) and water projects. A large number of civil projects are or
• e stimates of commercial intentions that draw from capital formation rates applied will be underway (eg Western Ring Route SH20, AMETI, Watercare Central Interceptor
to business turnover projections, and infrastructure, Auckland International Airport, line and broadband networks). Infrastructure
figures include a range of projects with this forecast reflecting the industry’s increasing
• household growth futures
expectation of sector growth as funding is committed for forward plans.
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.
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
13Appendix 2: Australian and New Zealand Standard Classification of Occupations (ANZSCO)
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.
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/abs@.nsf/Lookup/1220.0Chapter32013,%20Version%201.2
14Appendix 3: Development and Conceptual Structure of Auckland Construction and Infrastructure
Occupation Model (ACIOM)
A working group comprising of construction sector businesses (including Hawkins, This information supported the development of the Auckland Construction and
Dominion Constructors, Naylor Love Construction and Fletcher Construction – Building Infrastructure Occupations Model (ACIOM). ACIOM is an extension to the Auckland
and Interiors) were involved throughout the ACIOM creation process to provide expert Economic Futures Model used by Auckland Council. The ACIOM translates estimates of total
industry knowledge and advice on inputs and sense check outputs. An industry labour employment growth generated by the Economic Futures Model and the projections
profile was significantly refined through the working group process through inputs relating of industry activity into estimates of growth in each occupation.
to crew structure, labour cost rates and adoption of an industry standard methodology to
The Economic Futures model takes a multi-regional view of the Auckland economy, which
disaggregate construction projects into their component parts for ease of analysis.
means it places Auckland within the national context and provides a view of the future to
The top 62 occupations (at the 4 digit ANZSCO level) in the C&I industry profile derived 2036. The ACIOM modelling process has been limited to provide a 10 year view with rolling
from Census 2013 provided the basis of crew mix. Some of these occupations were annual labour totals for each 6 month interval. This enables good confidence in a 5 year key
disaggregated further (to 6 digit levels) to better capture and reflect construction industry occupations outlook, and the 10 year outlook providing a more general indication of where
views of key occupations. the industry is heading.
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
changes are such that it would no longer be as relevant. These work programmes (which
form an input to the model) can be revised to reflect the dynamic nature of investment
activity that drives the sector.
Standard inputs Auckland Economic
Outputs by year
• Population growth Futures Model • Gross output ($m)
• Export projects • Value added or GDP ($m)
• Fixed capital formation • Employment
• Productivity changes Auckland
Occupations
Inputs Profile Outputs
ACIOM
C&I specific inputs
• Current and future work
programmes C&I Sector
C&I
- Residential
- Non Residential Occupations Key Occupations
- Civil Profile Employment Outlook
• Future change
• Productivity changes
15Appendix 4: Notes
1. C&I = construction and infrastructure 5. These two occupations were disaggregated from the single construction manager
category. The project builder subcategory requires further explanation. Many
2. This growth profile does not take into account current demand or demand due to
existing project builders have completed trades qualifications (NZ Census, 2013).
attrition from the existing workforce. See Appendix 3 for an overview of the Auckland
The ANZSCO definition of Project Builder is “plans, organises, directs, controls and
Construction and Infrastructure Occupation Model (ACIOM)
coordinates the construction, alteration and renovation of dwellings and other
3. Employment growth based on ACIOM. See Appendix 3 for an overview of the Auckland buildings, and the physical and human resources involved in the building process.
Construction and Infrastructure Occupation Model (ACIOM) Registration or licensing is required. At least five years of relevant experience may
substitute for the formal qualification.”
4. Brief description of key: (see Appendix 2 for full description of ANZSCO skill level)
6. Occupation Outlook Report, 2014, MBIE forecasts 2.6% per year between 2011-2016.
Skill level 1: Bachelors degree or equivalent experience
Skill level 2: NZ Register Diploma or similar 7. See for example:
Skill level 3: NZ Register Level 4 qualification or similar http://www.immigration.govt.nz/NR/rdonlyres/89185A40-27D3-41F4-84BE-
Skill level 4: NZ Register Level 2 or 3 qualification or similar 30129920411D/0/ISSLMar2014.pdf
Skill level 5: NZ Register Level 1 qualification or similar http://www.immigration.govt.nz/NR/rdonlyres/063ECB35-F5D5-44D8-8325-
7041A727A9D5/0/INZ1093.pdf
http://www.seek.co.nz/investor/employment-index
Workforce Skills Roadmap for Auckland Construction Sector (2013-2018). Preliminary Report
Prepared for: Auckland Construction Sector on behalf of Construction and Infrastructure Sponsor Group. June 2014
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