Auckland & Christchurch

New Zealand

  • GDP Growth
  • Population
The latter half of the year witnessed a slowdown in the New Zealand construction sector, and this trend is expected to persist into the first half of the upcoming FY24 financial period. Several factors have contributed to this decline, including high inflation, interest rates, increased construction costs, general economic uncertainty, and the upcoming election in October 2023. The residential, accommodation, and retail markets have been particularly affected by these challenges.

In addition to these market factors, severe weather events like the January Flooding in Northland/Auckland and Cyclone Gabriel in February have had short-term adverse effects. However, these events also present opportunities for long-term economic growth through the implementation of recovery and resilience measures.

On a more positive note, the office and industrial sectors are showing growth and increased demand. The recent budget announcement includes a substantial infrastructure investment of $71 billion over the next five years - primarily focused on schools, hospitals, public housing, and the improvement of rail and road networks. This investment is expected to provide stability and drive growth in these sectors, offering potential opportunities for construction companies moving forward.

BG&E NZ has achieved notable success in elevating its presence within the New Zealand market, bolstering diversity and resilience to ensure long-term sustainability. This endeavour has been reflected in a four-fold increase in revenue.

The company remains committed to delivering top-quality structural buildings, façade installations, and construction engineering services to the industry. The year commenced with robust growth, particularly in the facades and buildings teams, which witnessed a doubling of team size before reaching a stable point. The addition of Kieran Woods as an Associate has not only facilitated a strong presence in the Northland region but has also provided valuable technical support to the Auckland office.

The Buildings team has focused on diversifying its client base in Auckland and Christchurch. Notable achievements include the delivery of NC12, an 8-storey apartment project for Fletcher Living in the Northcote Development. The Christchurch team has been leading a nationwide structural assessment of Holcim assets, followed by necessary strengthening measures. Peer reviews have been completed for projects such as the Auckland Airport Transport Hub, Pullman Hotel in Takapuna, and a 5-story mixed-use development in Christchurch. Expansion into the Northland region has opened opportunities for Ministry of Education projects in local schools.

BG&E NZ recognises the underserviced nature of the construction engineering sector in the NZ market and has cultivated strong relationships with key contractors, including NZ Strong. This has led to involvement in notable projects like the Air New Zealand Hangar 4 at Auckland Airport which features the largest timber arches in the Southern Hemisphere. The company aims to leverage its expertise and seize opportunities in this growing field.

Under the leadership of Michael Grant, the Facades team has excelled in an emerging sector with limited local knowledge and experience. BG&E NZ has successfully capitalised on this, combining its local team with talented facades experts from across Australia to deliver high-quality projects. Collaborative and proactive approaches have resulted in successful collaborations, including projects such as the Elementum Residential Development in Long Bay, Riverhead School in Riverhead (in partnership with the Ministry of Education and Ignite Architects), and the re-cladding/roofing of the Stardome Observatory in One Tree Hill, Auckland.

BG&E NZ's strategic focus has shifted away from private sector and residential apartments, off the back of its reputation built up in these areas. As a result, they are now engaged in multiple Ministry of Education school projects, with further public sector work on the horizon. This diversification is expected to enhance the company's resilience and robustness in the NZ market.

The success of BG&E NZ is attributed to the collective efforts and dedication of the entire team, both to each other and their clients. The one-team attitude within the company is seen as a valuable asset that will continue to drive success in the future.