Crane numbers drop 11% this year as construction slows

Lower crane numbers point to declining activity around the country. Photo / NZME

Falling crane numbers point to a notable drop in construction activity nationally.

Quantity surveyors Rider Levett Bucknall said the number of long-term cranes operating on sites fell 11% from 139 to 124 in the third quarter of the year compared with Q1.

New Zealand had a record high of 157 cranes in the first quarter of 2023.

The downturnhas particularly been felt in Auckland and Wellington. Auckland’s crane numbers fell to an eight-year low of 68, down 14% (or 11 cranes) on the first quarter of the year.

The Wellington crane index fell to a record low, with only five long-term cranes operating on sites in Q3.

Steve Gracey, Oceania chairman of Rider Levett Bucknall, cited a significant reduction in residential construction.

He said the number of residential long-term cranes decreased by 27% (from 30 to 22) in Q3 when compared with Q1.

Residential cranes have sharply declined from their peak two years ago – when they comprised 57% of all cranes – to just 17.7% of all cranes today, according to the RLB Crane Index.

“This trend indicates a broader downturn in the New Zealand construction market,” Gracey said.

“In addition, capital investment contracted by 1.3% during the last quarter, as businesses exercise caution in the face of high interest rates and uncertain demand.”

Gracey said social infrastructure such as schools, social housing and healthcare sectors had all seen a decline in construction activity.

“The prevailing recessionary economic conditions, coupled with high interest rates and tightening Government budgets, continue to dampen demand across the industry,” he said.

The non-residential sector also took a hit with the number of cranes declining from 109 to 102. Only the civil (4), data centre/ industrial (3), and retail (2) sectors saw net increases.

Nationally, 53 cranes were removed from sites, while 38 new long-term cranes were placed on sites in Q3.

Auckland has 68 long-term cranes, Christchurch 20, Tauranga 13, Queenstown 8, Dunedin 8, Wellington 5 and Hamilton 2.

“The residential crane sector has dominated in recent times in Auckland. However, the proportion of residential cranes fell from 57% of all long-term cranes in Q3 2022 to 23.5% in this edition; the lowest proportion of residential cranes in Auckland since the index commenced,” Gracey said.

Dunedin and Tauranga bucked the national trend by recording their highest long-term crane numbers since the index began in 2015.

Tauranga was boosted by the addition of four cranes to the Tauranga Northern Link Project.

Te Kaha Christchurch Stadium continues to have the greatest number of long-term cranes on a single site nationally, with 10.

The report said without significant project commitments and commencements over the next six months, residential cranes would continue to decrease across the region.

However, the Government’s fast-track approvals legislation – expected to pass through Parliament by the end of the year – could see 149 projects pushed through in an attempt to turbo-charge the economy.

On the list is a major revamp of Auckland’s Eden Park stadium.

All up, 58 housing or land development projects, 43 infrastructure projects, 22 renewable energy projects, 11 mining projects, seven aquaculture and farming projects and eight quarrying projects have been given the green light.

Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.