RLB CRANE INDEX®

Residential long-term crane numbers in Auckland fell 33% from 54 at Q1 2023 to 36. There were 90 long-term cranes across Auckland, down from 103. Twenty cranes were placed since our last report, with 33 removed.

Stats NZ’s most recent Building Work Put in Place results for Auckland showed construction activity in Auckland increased by 9.0% in Q1 2023 on a year-on-year volume basis (September 2022 prices). However, overall construction activity dropped on a quarter-on-quarter basis by 6.2%. Activity in the residential sector fell by 6.8% on a quarter-on-quarter basis.

Total building consents also reflect the slowing of activity in Auckland. There was a 0.6% drop in overall consents for the year to 30 June 2023. Residential consents fell by 4.2% but were offset by a 3.9% lift in non-residential consents.

The residential crane sector continues to dominate in Auckland. However, activity has fallen from a high of 68% of all long-term cranes in Q3 2017 to 40%; the lowest proportion since the index commenced. The mix of cranes in Auckland has seen long-term cranes on civil sites increase from 6% to 28% since Q3 2017. This rise in crane activity in the infrastructure and civil sector is reflective of increased government spending.

Without significant commencements over the next six months, residential cranes will continue to decrease across the region. Currently, 33 long-term cranes are assisting construction activities on 28 projects, all of which had cranes positioned on them as at our last count. Only three new cranes commenced on projects in the last quarter. Many of these projects will be nearing completion within the next six to 12 months, highlighting the potential of a significant absence of residential cranes into 2024, unless a considerable number of projects commence during the next six months.

The non-residential count increased by five long-term cranes in Q3 2023, an increase of 10.2%. This increase somewhat offset the reduction in residential cranes.