What NZCBIA’s 2025 report reveals about productivity

When the New Zealand Chinese Building Industry Association (NZCBIA) released its first State of the Sector report in 2024, it was designed to answer a simple question –  but ended up opening a much bigger conversation regarding productivity

That conversation is what shaped the 2025 edition, released in August, which places productivity firmly at the centre of the discussion. Rather than treating productivity as an abstract challenge, the latest report explores why it has become such a pressing issue – and why it can’t be ignored as the industry moves beyond the current downturn.

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

The data behind the concern

The report’s findings help explain why productivity is now front of mind. While there have been peaks and troughs, construction productivity is nearly on par with where it was 40 years ago in terms of wages and profits per worker.

One of the most striking statistics is that 40% of the construction workforce has less than one year of experience. This highlights significant churn within the industry, with implications for efficiency, training, safety and long-term capability.

To combat churn, Eaqub says investment in technical skills, management and leadership training can help shift the needle.

“This can lead to reduced costs, greater efficiency, more profitability and improved working conditions, which can lead to better worker incomes as well as greater retention.”

The sector faces several unique structural challenges that are difficult for firms to manage, including skilled labour shortages and a reliance on subcontractors, which makes it difficult to gain process and cultural efficiencies.

“New Zealand is not alone in facing a productivity challenge, but international experiences show solutions we can adopt and adapt,” says Eaqub. “These are more business-related, via coordinated changes across multiple domains of management, which qualitative feedback locally suggests is a weakness.”

A key driver of improvement is the development of firm-level innovation strategies with a long-term outlook, particularly focused on how companies engage with and train their workforce.

Tangible tips to increase productivity

The report identifies areas in which small, medium and large firms can lift productivity:

Small firms can prioritise efficient use of existing resources, foster a culture where employees contribute ideas, identify risks early, and adapt innovative technologies or techniques quickly.

Common pitfalls include: overlooking structured and formal avenues for knowledge exchange can limit innovation potential. Ignoring longer-term planning can constrain the viability and growth of small firms.

Medium firms can invest in internal knowledge management, promote cross-team collaboration, encourage proactive innovation, and develop targeted training programmes.

Common pitfalls include failure to integrate knowledge sharing and long-term vision may cause missed opportunities. Overemphasis on cost savings without strategic alignment can reduce company / project value.

Large firms can allocate resources to research and development, and ensure ongoing training supports the adoption of advanced technologies.

Common pitfalls include complex decision-making processes are likely to slow innovation response times. Neglecting internal communication can limit the impact of technology and training investments.

“While business changes like these require commitment, the benefits include reduced costs, higher margins, lower rework rates and improved customer satisfaction,” says Eaqub. “The paths to innovation will differ depending on firm size, with each group needing to focus on strategies that align with their strengths and challenges.”