“The market is booming but profits are getting leaner…”
Recent research from ANZ signals increased risk for the construction sector around cash-flow over the next 6–12 months.
ANZ Client Insights and Solutions manager Bevan Holdaway said while confidence in the construction sector was still strong, there was a need to remain cautious of circuit breakers at this point in the economic cycle.
As a large banker of the New Zealand construction sector ANZ conducted the research to identify issues facing construction firms that customers might not be aware of.
“The combination of a strong economy, record migration, and the shortage in the residential housing market should continue to provide demand in both the residential and non-residential pipeline. However, despite record levels of activity profit margins are getting leaner.” Mr Holdaway said.