2025 NZCBIA report shines a light on productivity and strategy

The New Zealand Chinese Building Industry Association (NZCBIA) has released its second annual State of the Sector report, offering a data-driven look at the construction industry – and a strong call for smarter business strategy 

Led by independent economist and researcher Shamubeel Eaqub, NZCBIA President Frank Xu says the State of the Sector 2025 report doesn’t just reflect on the current landscape – it moves the conversation forward, with a new section dedicated entirely to business strategies for lifting productivity. 

“The idea started a few years ago when PlaceMakers came to us with a question: how many Chinese builders are there in Auckland?” says Xu.  

“We didn’t know – and that prompted us to think more broadly about what else we didn’t know about the sector. That thinking sparked the first report in 2024 and we gave Shamubeel full freedom to explore what we didn’t know. No restrictions – we wanted to uncover the real story.” 

That open approach produced an insightful and wide-ranging inaugural report – one that Xu says surprised many across the sector with the breadth of its analysis. 

A wider lens 

One of the most striking aspects of the 2024 report was its scope. The total value of the construction industry, according to Eaqub’s analysis, is $99bn – far above the figures usually cited, which typically sit closer to $45-50bn. 

The reason? Eaqub included not just primary construction activity, but also the wide range of services and supply chains directly aligned with the industry – from logistics and wholesale trade to subcontracting and professional services. It paints a much more holistic picture of how interconnected the sector is – and just how much of the economy relies on its success. 

Xu says the increased scope also sparked something more: dialogue. 

“Through the promotion of the first report, we got feedback from interviewees and members,” says Xu. “And one theme kept coming up – productivity.” 

That became the defining lens for the 2025 edition – not just highlighting where the industry is under pressure, but actively exploring how businesses can operate more efficiently, scale smarter, and retain the people they need to thrive. 

Urgent issues identified 

Despite its big-picture scope, the report drills into practical realities too. 

For example, the report revealed that 40% of the workforce has less than one year of experience. 

This points to an industry grappling with serious churn, skills shortages, and onboarding challenges – issues that will only worsen as the market recovers from its current downturn. 

In the last year alone, the sector has seen a $5bn drop in revenue, and a significant proportion of businesses are operating with negative margins. Yet, as Xu points out, when activity picks up again, businesses will still be dealing with the same problems – unless they start preparing now. 

More than a report – business advice for a smarter sector 

What makes the 2025 report especially notable is the shift in tone. While it still includes robust economic analysis, it also acts as a business improvement guide. 

A full section of the report is devoted to strategies to improve productivity, giving builders and construction business owners tangible frameworks to work with. 

This includes: 

• Case study-style insights from experienced operators. 

• Practical levers that influence productivity (eg, staff retention, workflow planning and digital tools). 

• Ideas for how merchants and suppliers can better support small-to-medium operators. 

“It’s part report, part roadmap,” says Zu. ”And that shift in purpose reflects NZCBIA’s aim of being both an advocate and advisor within the sector.” 

What’s next? 

Over the next few weeks, we’ll look more closely at the different information highlighted in the report, including: 

1. The sector’s size and make up. 
2. Business strategy to lift productivity.