Record crane numbers across New Zealand buoyed by new hotels, infrastructure and the metro sports project
March 25, 2019.
A new record of 148 long-term cranes stand tall across New Zealand’s cities, according to the Rider Levett Bucknall Q1 2019 RLB Crane Index® released today. Since our last edition, 58 long-term cranes were positioned on new projects and 50 cranes were removed from ones nearing completion.
The rise in crane numbers across the country mirrors the record levels of new building work put in place which grew 6.8% to $18 billion for the 12 months ending 30 September 2018.
Growth of 6.8% and 6.9% respectively was recorded for new residential and new non-residential work put in place. New building consents also rose with the number of consents in CY 2018 reaching 39,087 and totaling $17.6 billion.
Pressure on resources continues with Auckland’s pipeline of new projects
RLB Director Chris Haines said, ‘Whilst the record levels of construction activity across New Zealand is a good news story, the recent demise of yet another key contractor provides a sign of caution for the period ahead.’
‘The record crane count of 98 long-term cranes in Auckland highlights strong activity continuing with current resources being stretched and needing to be supplemented by resources from around the country and from overseas,’ he added.
Auckland contributing two thirds of all long-term cranes
According to the RLB Crane Index®, residential cranes remained steady at 56 cranes, with 17 new cranes and 18 removals. This is representative of the historical shift towards the intensification of housing across the country through multi-unit dwellings such as apartments and townhouses.
The doubling of civil cranes from seven to fourteen is reflective of the government’s ongoing commitment to fund the upgrading of key infrastructure projects around the nation. Projects include road widening, bridges, water infrastructure upgrades, America’s Cup infrastructure and Auckland’s City Rail Link.
Hotel sector growing to meet tourism demands
Significant investment within the hotel and recreation sectors has seen a jump of eleven new cranes. Of the 14 hotel projects across the country, ten are in Auckland.
Chris continued, ‘Many Auckland hotel projects have 2021 completion dates to coincide with both the America’s Cup Challenge in March 2021 and APEC Economics Leaders’ meeting in November 2021.’
Continued investment in growing centres
According to the RLB Crane Index®, the Metro Sports Centre in Christchurch, the Westfield Newmarket redevelopment, Commercial Bay (office and retail) and NZICC (civic and hotel), are the largest crane sites in New Zealand.
The record crane counts in Tauranga and Queenstown in particular shows strong growth and continued investment in these growing centres. The on-site progress of the Metro Sports facility is good news for Christchurch at a time when many of the civic, commercial and residential projects have finished.
The Wellington market activity remains at similar levels to 2018 but the construction market is considered largely at capacity with a shortage of Tier 1 Main Contracting options for larger projects a key issue for future work.
Multi-unit residential and hotels present challenges
Auckland’s residential cranes account for 82% of all residential cranes in New Zealand, and 31% of all cranes nationally. This includes cranes on projects for multi-residential apartments, private residential, student residential accommodation and the aged care sector.
Chris concluded, ‘Multi-unit residential and hotels are challenging to get right in terms of time, cost and quality. We are seeing the consenting process and sign-off risk impacting projects on site which can have both program and cost impacts on site. Ultimately, we are seeing that more time is needed to design, consent and build on big projects.’
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