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Canterbury Construction Industry in COVID-19

Canterbury Construction Industry in COVID-19

Posted on May 28, 2020 by Christchurch NZ

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In 2019, a large proportion of jobs in the construction industry are associated with residential construction (5,200), an important sub-industry both regionally and nationally while non-residential building construction supports 4,200 jobs. This is followed by road construction (3,200 jobs), with other heavy and civil engineering construction supporting 2,700 jobs.

Christchurch city is both the largest urban area in Canterbury and was the most affected by the 2010/11 earthquakes. This means most construction employment is in the city.

Employment in the Christchurch city construction industry aligns with the region. Most jobs are in house construction (3,500 jobs), followed by road and bridge construction (2,350 jobs), other heavy and civil engineering construction (2,150 jobs) and non-residential building construction (2,050 jobs).

The construction employment associated with the Canterbury rebuild activity continues to be above the normal demand-driven level of employment in construction for the region in 2019. This difference is estimated at 3,200 jobs and closing in 2019.

The rebuild investment injection has benefited the economy beyond construction. The economy consists of various streams of forward and backward links and spending in one area of the economy influences the wider economy. To illustrate this concept, a $1m investment injection in non-residential construction benefits other industries such as manufacturing ($148k), wholesale trade ($38k) and professional and technical services ($37k) and as a result, creates employment.

 

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