COVID-19 and the Changes It Made to Construction Demand in New Zealand

The study investigates the changes in construction demand in New Zealand caused by COVID-19. By understanding the effects of the pandemic on the construction market, organisations can develop strategies to adapt to future events that may influence construction demand. The pandemic caused a shift in demand for different kinds of buildings in New Zealand, with a surge in residential buildings followed by an increase in non-residential buildings. The discussion explores the changes in construction demand and their implications for the construction industry in New Zealand as a whole. A qualitative approach was employed in the study using semi-structured interviews. The data collected from the interviews were imported into NVivo software (Release 1.6) and analysed thematically. COVID-19 slowed down construction work in most parts of the world. But in New Zealand, the pandemic caused a surge in demand for different building types. Specifically, there was an increase in demand for residential construction and renovation and a lack of material and storage space. Therefore, many of the consented houses could not be built on time and budget due to supply chain issues. In response, companies attempt to secure materials in bulk and store them on-site. This situation increased the demand for warehouse space and put smaller companies under strain. The study suggests moving towards new business models, including more resilient supply chain management, diversification of suppliers, investment in local manufacturing and storage capacities, and adopting more flexible construction methods.