In this Mood of the Nation Industry Insights we hear from:
John Hemi – Director of Construction Productivity at Te Waihanga | Institute National Board Chair
Craig Hopkins – Chief Executive of Generation Homes | Institute Board Member and Northern Region Committee Chair
Kirsten Magnusson - Strategic Marketing Director at Magnusson & Co | Institute National Board Deputy Chair
Graeme Earl - Director at Naylor Love Canterbury | Institute Board Member and Southern Region Committee member
Jared Glue - Project Director RCP | Southern Region Committee member and Dunedin Branch Chair
Amy Scarfe – Business Director at Hays who presented insights from the latest Hays Skills Report. (download below)
They focused on the state of the industry in 2025, examining recent changes, ongoing challenges, opportunities, and how various stakeholders—including government and private sector players—are responding.
Key takeaways:
Recruitment and Skills Gaps: The construction sector remains in its toughest hiring climate in years, mostly filling existing roles rather than creating new ones. There’s a major shortage of both technical and “human” (soft) skills, with 81% of employers struggling to find the appropriate talent.
Government & Sector Outlook: The government now recognizes the downturn’s impact and is trying to stabilise the sector after an overheated post-pandemic construction boom. We are seeing stabilisation with education and health sector projects resuming after major reviews, and an emphasis on moving projects forward more consistently.
Opportunities and Risks: Demand for digital and AI-savvy professionals is growing. Without investment in upskilling and workforce development now, the sector risks a severe labour crunch and slower recovery when the market improves.
Positives: Private consenting picking up, new projects moving forward, and promise from innovative procurement models (like design & build, PPP). Strong emphasis on building your brand and reputation for long-term success.
Recommendations: Get proactive—upskill and recruit now, ahead of market recovery. Invest in digital, AI, and human skills to boost efficiency and future-proof teams.
