Bringing people into construction

This Issue This is a part of the Skilling the workforce feature

By - , Build 173

Major work is under way to tackle some of the institutional problems facing the construction industry. From changes to the Building Act, an examination of where the sector is headed and initiatives to deal with the skills shortage, change is happening.

AS MINISTER for Building and Construction, I’m immensely proud to represent an industry of hard-working individuals who fill the wide range of roles that make up the sector.

Building and construction important contributor

The building and construction sector is New Zealand’s fourth-largest employer, accounting for nearly 10% of New Zealand’s workforce. It’s our fifth-largest industry by GDP contribution.

These numbers are impressive in themselves, and even more so when it’s considered that the sector is growing – construction is one of eight industries forecast for higher than average annual growth to 2026.

As a government, we’re dependent on a high-performing construction industry, staffed with the right people and skills, to ensure the sustainable delivery of the quality homes, schools and hospitals vital to the wellbeing of all New Zealanders.

Industry changing with technology

The industry is changing. It’s no longer the traditional image of a builder with a hard hat and tool belt. It’s increasingly about new technology and innovative techniques and using modern methods of construction including off-site manufacturing to think differently about the way we build.

Focus on improving building system

The key to the sustained growth of the sector is to make sure the building system is performing at its best level and that changes are made where needed. The government has a full work programme focused on this.

For example, we just wrapped up the consultation process on the Building System Legislative Reform Programme – the biggest proposed changes to the Building Act since it came into force in 2004.

MBIE is now analysing the submissions received, and I would like to thank those who took the time to send in submissions that will assist with the recommendations I will make to Cabinet.

In April, we launched the Construction Sector Accord. This established a mutual commitment between government and industry to work together to transform the construction sector by changing culture and behaviour in the sector and tackle some of the long-standing issues together. The second phase of the Accord is about creating that change through an industry action plan.

We’re also developing New Zealand’s first Building System Strategy, which will provide a clear direction on where the construction sector is heading and how we’re going to get there.

These initiatives are helping us work towards our goal of a healthy sustainable construction sector that meets the needs of New Zealanders.

Priority to address skills shortage

One of the biggest challenges that the sector is facing in improving performance, though, is huge shortfalls across all skill levels in the workforce.

Our priority is addressing the skills shortage we’re seeing so that we have the capability and capacity we need to meet New Zealand’s current and future construction needs.

The simple answer is that we’re bringing more people into the construction sector.

If it was as easy as just saying that, though, it would have been done years ago. To actually achieve this, we need a sustained effort with wide and varied solutions that address the issue on a number of levels.

Government needs to come together in a coordinated way and work closely with the construction sector.

Construction Skills Action Plan released

The first step in bringing together a cross-government effort is the Construction Skills Action Plan.

The Action Plan was developed by the Ministerial Group on the Construction Workforce. The idea is that government works together with industry to drive change so we’re delivering the right people, at the right time, with the right skills to meet the ever-growing demand.

It’s a collective effort to a common goal, where we’ve looked at what the short-term levers are that we can pull to get more people into roles immediately. These include changing immigration settings and, where we can, making long-term investments such as working with industry to change views on what a career in construction means.

There are six initiatives that make up the Action Plan:

  • Partnering with employers and training providers to provide industry-specific training for job seekers.
  • Boosting skills through government procurement by mandating government agencies to use the money they’re investing in building to find ways to partner more effectively with the construction sector.
  • Establishing more jobs and skills hubs to provide recruitment, skills and training opportunities and schools-to-employment connections in the construction industry.
  • Growing construction careers and credentials by working with industry to increase interest and change views on careers in construction.
  • Mana in Mahi (Strength in Work), which helps employers help young people get training and career opportunities in a range of industry sectors.
  • Further changes in immigration settings that will help the sector address immediate skills shortages.

Action Plan well under way

At this point, four of the six initiatives of the Action Plan are officially under way. The rest will be delivered in the second half of 2019.

What we’re seeing so far is promising, and I’m excited by what’s been achieved. Our goal is to get 4,000 extra people participating in the construction workforce, and we’re well on our way to meeting it.

It’s clear that the demand for jobs in the industry is out there, and people are attracted to the potential for a career in the sector.

Programme to train those on benefits

For example, in late April, the Minister for Social Development and I were at the launch of a construction initiative in Wellington giving young people on a benefit training and work experience while building community houses.

The programme, called Kiwi Can Do, tackles two major issues – upskilling and training young people so they can get off the benefit and into work in industries like construction, while increasing the supply of much-needed community housing.

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Helping students into a construction career

To attract more people into the construction industry, the Tertiary Education Commission has launched a construction hub on its website – careers.govt.nz/construction.

The career information in the hub outlines skills needed for a construction career, how to prepare while still at school and personal stories – including tips to help school students talk with their parents about their career choice.

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Jobs and skills hubs

I’m also excited about the opening of two additional Jobs and Skills Hubs in Auckland. This will help the industry by providing training and support to get the right people into roles that will provide them with a career path and give the industry a steady stream of employees.

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Skills and training in government contracts

Tackling the issue from another angle, we are working to make skills and training development a requirement for government construction procurement projects valued at over $9 million so more people can learn on the job.

This is set to become mandatory later this year, but we’re seeing many government agencies already getting on board with the requirement, and people, especially youth, are reaping the benefits of the investments.

Just the beginning

We know there’s still a long road ahead of us, and this version of the Action Plan is just the start of addressing the skills shortages in the construction sector.

The next step is to focus on capability as well as growing workforce numbers. This means better understanding what the future of construction looks like and what skills will be needed as construction methods evolve. As these things come to light, we will be working to lift capability so we can be sure that we’re building the right skills New Zealand needs for the future.

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For more

Stay involved in what’s being done. For more information, visit www.skillsinconstruction.govt.nz.

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