2021 APAC Construction Forecast - Misc. NZ
2021 APAC Construction Forecast

2021 APAC Construction Forecast

Signs of hope amid uncertainty.

Words by ArchiPro Editorial Team

2020 was the year that upended every country’s predictions and plans as the COVID-19 pandemic swept through communities and economies, triggering one of the most significant global recessions in living memory.

As a result, growth predictions for 2021 start from a lower standpoint than usual. However, we have likely (and hopefully) experienced the worst conditions the industry is going to face. So 2021 is expected to deliver a tangible improvement to the conditions of last year.

Overall, the World’s GDP contracted by an estimated 4 per cent in 2020. In 2021, it is predicted to recover to more positive growth of 4.5 per cent with the IMF expecting the APAC region to recover better than other parts of the world, with growth in the regional GDP of around 6.9 per cent—led by nations that have achieved successful pandemic containment and suppression strategies, particularly New Zealand, Australia, Hong Kong and Singapore.

According to Procore Technologies’ 2021 APAC Construction Forecast, the New Zealand economy is likely to have one of the strongest recoveries in the APAC region, thanks to the rapid deployment of measures to eliminate community transmission of COVID-19.

While a drop in new dwelling approvals was forecast, ongoing and new infrastructure projects should account for a modest increase for the sector by 2026.

The NZ Construction Pipeline Report, released in December 2020, forecasted a drop in new dwelling approvals throughout 2021 as well as a slump in new apartment projects as a result of the pandemic. However, ongoing and new infrastructure projects should result in an overall moderate increase in activity for that sector to around $10.1 billion by 2026.

The report goes on to state that commercial projects have also reached a peak and while strong market signals, in terms of intentions to commence new projects, have been proclaimed, actual start dates may be pushed out until the economy has fully stabilised and investor confidence returned.

Economic Development Minister, Phil Twyford, says: “There will... be an accelerated procurement process in sectors such as construction to help get projects up and running quickly to generate economic stimulus as soon as possible. The construction sector will play a big part in New Zealand’s COVID-19 recovery and departments and agencies will now need to consider the use of more sustainable building materials.”

The pivot to digital tools has been identified as one of the four big trends shaping construction prospects.

For leading construction management software provider, Procore, there are four big trends shaping construction prospects:

Trend 1—Safety first

Existing processes for managing onsite safety risks in nations including Australia, New Zealand, Singapore and Hong Kong enabled the rapid uptake of COVID-safe principles and practices, ensuring that the industry can remain operational and retain levels of employment and activity, making a significant contribution to national balance sheets.

Trend 2—The pivot to digital tools

New solutions, such as fintech for contactless transactions, online meeting technologies, collaboration platforms, project oversight and project management systems, have led to a rapid evolution of many firms’ practices.

Trend 3—Navigating borders

Labour mobility will continue to be restricted, with international travel limits expected to remain in place for many places throughout 2021. This, combined with supply chain disruptions, shows the importance of the onshoring of procurement of construction materials and local construction labour.

Trend 4—Government intervention

Increased spending was necessary to buffer the impacts of lockdowns, shutdowns and slowdowns. Public funding for infrastructure projects and public building projects were part of national budgets delivered during 2020 and will contribute to the level of industry activity in the future. Both conventional hard infrastructure and digital infrastructure have become a priority to support the leap into digital ways of doing business.

Entering 2021, there is a cautious sense of optimism that the harsh lessons of the first stages of the pandemic have laid the groundwork for a slow but definite global economic recovery. For the Asia-Pacific region, PwC considers 2021 and beyond the region’s time to shine. Embracing changes—advancing the digital economy, rebalancing and localising supply chains, collaborative approaches and focusing on resilience—will deliver lasting benefits.

Two factors remain crucial to allow COVID-safe business continuity—enhanced health and safety awareness and rapid uptake of enabling digital technologies. There is no going back to the pre-pandemic way of doing business—the digital future has arrived, and innovation is the name of the game.

To learn more about facing the changes ahead, click below to download the full 2021 APAC Construction Forecast.

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2021 APAC Construction Forecast

2021 APAC Construction Forecast

Signs of hope amid uncertainty.

Words by ArchiPro Editorial Team

2020 was the year that upended every country’s predictions and plans as the COVID-19 pandemic swept through communities and economies, triggering one of the most significant global recessions in living memory.

As a result, growth predictions for 2021 start from a lower standpoint than usual. However, we have likely (and hopefully) experienced the worst conditions the industry is going to face. So 2021 is expected to deliver a tangible improvement to the conditions of last year.

Overall, the World’s GDP contracted by an estimated 4 per cent in 2020. In 2021, it is predicted to recover to more positive growth of 4.5 per cent with the IMF expecting the APAC region to recover better than other parts of the world, with growth in the regional GDP of around 6.9 per cent—led by nations that have achieved successful pandemic containment and suppression strategies, particularly New Zealand, Australia, Hong Kong and Singapore.

According to Procore Technologies’ 2021 APAC Construction Forecast, the New Zealand economy is likely to have one of the strongest recoveries in the APAC region, thanks to the rapid deployment of measures to eliminate community transmission of COVID-19.

While a drop in new dwelling approvals was forecast, ongoing and new infrastructure projects should account for a modest increase for the sector by 2026.

The NZ Construction Pipeline Report, released in December 2020, forecasted a drop in new dwelling approvals throughout 2021 as well as a slump in new apartment projects as a result of the pandemic. However, ongoing and new infrastructure projects should result in an overall moderate increase in activity for that sector to around $10.1 billion by 2026.

The report goes on to state that commercial projects have also reached a peak and while strong market signals, in terms of intentions to commence new projects, have been proclaimed, actual start dates may be pushed out until the economy has fully stabilised and investor confidence returned.

Economic Development Minister, Phil Twyford, says: “There will... be an accelerated procurement process in sectors such as construction to help get projects up and running quickly to generate economic stimulus as soon as possible. The construction sector will play a big part in New Zealand’s COVID-19 recovery and departments and agencies will now need to consider the use of more sustainable building materials.”

The pivot to digital tools has been identified as one of the four big trends shaping construction prospects.

For leading construction management software provider, Procore, there are four big trends shaping construction prospects:

Trend 1—Safety first

Existing processes for managing onsite safety risks in nations including Australia, New Zealand, Singapore and Hong Kong enabled the rapid uptake of COVID-safe principles and practices, ensuring that the industry can remain operational and retain levels of employment and activity, making a significant contribution to national balance sheets.

Trend 2—The pivot to digital tools

New solutions, such as fintech for contactless transactions, online meeting technologies, collaboration platforms, project oversight and project management systems, have led to a rapid evolution of many firms’ practices.

Trend 3—Navigating borders

Labour mobility will continue to be restricted, with international travel limits expected to remain in place for many places throughout 2021. This, combined with supply chain disruptions, shows the importance of the onshoring of procurement of construction materials and local construction labour.

Trend 4—Government intervention

Increased spending was necessary to buffer the impacts of lockdowns, shutdowns and slowdowns. Public funding for infrastructure projects and public building projects were part of national budgets delivered during 2020 and will contribute to the level of industry activity in the future. Both conventional hard infrastructure and digital infrastructure have become a priority to support the leap into digital ways of doing business.

Entering 2021, there is a cautious sense of optimism that the harsh lessons of the first stages of the pandemic have laid the groundwork for a slow but definite global economic recovery. For the Asia-Pacific region, PwC considers 2021 and beyond the region’s time to shine. Embracing changes—advancing the digital economy, rebalancing and localising supply chains, collaborative approaches and focusing on resilience—will deliver lasting benefits.

Two factors remain crucial to allow COVID-safe business continuity—enhanced health and safety awareness and rapid uptake of enabling digital technologies. There is no going back to the pre-pandemic way of doing business—the digital future has arrived, and innovation is the name of the game.

To learn more about facing the changes ahead, click below to download the full 2021 APAC Construction Forecast.

Get in touch with
Procore Technologies

Request pricing/info
Visit website
Recommended reading
Done tagging
All
Projects
Products
Professionals
Articles
2021 APAC Construction Forecast

2021 APAC Construction Forecast

Signs of hope amid uncertainty.

Words by ArchiPro Editorial Team

2020 was the year that upended every country’s predictions and plans as the COVID-19 pandemic swept through communities and economies, triggering one of the most significant global recessions in living memory.

As a result, growth predictions for 2021 start from a lower standpoint than usual. However, we have likely (and hopefully) experienced the worst conditions the industry is going to face. So 2021 is expected to deliver a tangible improvement to the conditions of last year.

Overall, the World’s GDP contracted by an estimated 4 per cent in 2020. In 2021, it is predicted to recover to more positive growth of 4.5 per cent with the IMF expecting the APAC region to recover better than other parts of the world, with growth in the regional GDP of around 6.9 per cent—led by nations that have achieved successful pandemic containment and suppression strategies, particularly New Zealand, Australia, Hong Kong and Singapore.

According to Procore Technologies’ 2021 APAC Construction Forecast, the New Zealand economy is likely to have one of the strongest recoveries in the APAC region, thanks to the rapid deployment of measures to eliminate community transmission of COVID-19.

While a drop in new dwelling approvals was forecast, ongoing and new infrastructure projects should account for a modest increase for the sector by 2026.

The NZ Construction Pipeline Report, released in December 2020, forecasted a drop in new dwelling approvals throughout 2021 as well as a slump in new apartment projects as a result of the pandemic. However, ongoing and new infrastructure projects should result in an overall moderate increase in activity for that sector to around $10.1 billion by 2026.

The report goes on to state that commercial projects have also reached a peak and while strong market signals, in terms of intentions to commence new projects, have been proclaimed, actual start dates may be pushed out until the economy has fully stabilised and investor confidence returned.

Economic Development Minister, Phil Twyford, says: “There will... be an accelerated procurement process in sectors such as construction to help get projects up and running quickly to generate economic stimulus as soon as possible. The construction sector will play a big part in New Zealand’s COVID-19 recovery and departments and agencies will now need to consider the use of more sustainable building materials.”

The pivot to digital tools has been identified as one of the four big trends shaping construction prospects.

For leading construction management software provider, Procore, there are four big trends shaping construction prospects:

Trend 1—Safety first

Existing processes for managing onsite safety risks in nations including Australia, New Zealand, Singapore and Hong Kong enabled the rapid uptake of COVID-safe principles and practices, ensuring that the industry can remain operational and retain levels of employment and activity, making a significant contribution to national balance sheets.

Trend 2—The pivot to digital tools

New solutions, such as fintech for contactless transactions, online meeting technologies, collaboration platforms, project oversight and project management systems, have led to a rapid evolution of many firms’ practices.

Trend 3—Navigating borders

Labour mobility will continue to be restricted, with international travel limits expected to remain in place for many places throughout 2021. This, combined with supply chain disruptions, shows the importance of the onshoring of procurement of construction materials and local construction labour.

Trend 4—Government intervention

Increased spending was necessary to buffer the impacts of lockdowns, shutdowns and slowdowns. Public funding for infrastructure projects and public building projects were part of national budgets delivered during 2020 and will contribute to the level of industry activity in the future. Both conventional hard infrastructure and digital infrastructure have become a priority to support the leap into digital ways of doing business.

Entering 2021, there is a cautious sense of optimism that the harsh lessons of the first stages of the pandemic have laid the groundwork for a slow but definite global economic recovery. For the Asia-Pacific region, PwC considers 2021 and beyond the region’s time to shine. Embracing changes—advancing the digital economy, rebalancing and localising supply chains, collaborative approaches and focusing on resilience—will deliver lasting benefits.

Two factors remain crucial to allow COVID-safe business continuity—enhanced health and safety awareness and rapid uptake of enabling digital technologies. There is no going back to the pre-pandemic way of doing business—the digital future has arrived, and innovation is the name of the game.

To learn more about facing the changes ahead, click below to download the full 2021 APAC Construction Forecast.

Get in touch with
Procore Technologies

Request pricing/info
Visit website
Recommended reading
Done tagging