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Construction Sector – Construction cost growth flatlines as industry slowdown persists

Source: Quotable Value

The latest figures from QV CostBuilder show construction costs overall have barely risen in the second quarter of 2025, amidst an ongoing downturn for the industry. 
The average cost of building a standard one- or two-storey 150/230m² home in Auckland, Wellington, Christchurch, Hamilton, Dunedin or Palmerston North has rose just 0.1% in the past three months- down again from the 0.4% increase recorded in the first quarter of this year.
Annually, the cost of building a home in one of those six centres has increased by an average of 1.3%, which is in stark contrast to the double-figure growth experienced throughout 2021, 2022, and 2023.
“This ongoing deceleration in construction cost inflation signals a broader industry slowdown,” said QV CostBuilder quantity surveyor Martin Bisset.
“With subdued demand and tighter economic conditions, we’re now seeing many building material prices either holding steady or trending downward.”
“Where we previously saw surging labour costs due to shortages, particularly in skilled trades, we’re now seeing a plateau,” Mr. Bisset noted.
“This is a positive for developers managing tighter margins in a cooling market.”
In the meantime, the cost of building non-residential buildings (excluding educational buildings) has also increased slightly by 0.1% this quarter, with an annual cost increase of less than one percent at just 0.9%. In our Q1 update, costs remained steady, up just 0.1% for the quarter and 1.2% for the year – also reflecting the downward trend in building costs in New Zealand.
“These figures tell a story of stability rather than volatility,” Mr. Bisset added.
“Construction costs are plateauing, but that doesn't mean predictability for every project. The complexity, level of finish, and design elements will always have a major influence on overall cost.”
However, he warned that geopolitical instability had the potential to impact prices in the future. “New tariffs have exacerbated the high levels of tension and uncertainty in international relations, along with recent escalation of armed conflicts means a general sense of political volatility continues to pose risks, not only to construction costs but also to the economy as a whole,” Mr. Bisset said. “Anything that impedes the flow of goods across the world has the potential for increasing the difficulty and therefore the cost of acquiring building materials here in Aotearoa.”
Steel framing was among the biggest movers this quarter, down 5.7%; structural steel fell 2.1%; leading to a (1.4%) drop in the prices for Stairs and Balustrades; and Frames (0.7%). Site preparation costs dropped (1.0%) due to a reduction in sheet piling and diesel rates. Suspended ceilings fell 4.6%; and fire proofing costs decreased 3.2%. Bucking the trend, Formwork costs rose slightly by 0.3%; as did exterior walls and exterior finish costs.
Labour rates have remained relatively stable, to March 2025; in the past three months, rising just 0.14% and they are up 1.8% over the past year. The downturn in overall construction activity – particularly in residential housing – has eased pressure on the labour market. Fewer projects mean there’s less competition for workers, which is helping to stabilise hourly rates and control one of the biggest contributors to project budgets.
QV CostBuilder is New Zealand’s most comprehensive subscription-based building cost platform.
In this update, more than 12,400 current material prices were applied to its database of more than 60,000 rates, generating about 6,300 changes to the data across six centres.
Powered by state-owned enterprise Quotable Value, QV CostBuilder’s comprehensive database covers everything from the building costs per square metre for banks, schools, and office buildings, to the approximate cost per sheet of GIB and more than 8,000 other items. It also includes labour rates, labour constants, and much more.
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Energy Sector – Meridian appoints new General Manager

Source: Meridian Energy

4 June 2025 – Meridian Energy has appointed Rory Blundell to the newly created role of General Manager, Strategy and Portfolio. Rory is currently Meridian’s Group Strategy Manager and starts his new position with immediate effect.

Rory brings over 20 years of New Zealand electricity sector experience to his new role, having previously held numerous senior and executive management positions in the industry.

“I am delighted to appoint Rory into this new and important role. His depth of sector experience and quality have significantly advanced the development and execution of our strategy. I am confident he will improve the way our market portfolio and customer solutions align with that strategy. Rory’s calibre will add to the Meridian Executive, and further improve the way we work collectively,” says CEO designate Mike Roan.

“Rory is a great example of the bench strength we have developed at Meridian, and I look forward to his continued contribution to the future direction of this company”.

Chris Ewers, currently acting General Manager, Strategy and Portfolio, will now take up a new position as Electricity Security Manager, reporting to General Manager, Generation Tania Palmer.

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First Responders – Waitangi Bridge ship fire update #2

Source: Fire and Emergency New Zealand

Fire and Emergency New Zealand crews have brought the fire on The Tui in Paihia under control this morning.
Community Risk Manager Mitchell Brown says the fire began on the ship, which had been converted into a building on land next to the Waitangi Bridge.
“Sadly, the structure is about 90 per cent destroyed, which is a significant loss of history to the community,” he says.
“Our volunteer crews responded at around 4am, and they’ve been working really hard the last few hours to bring the fire under control.
“We’re just dampening down the last hotspots now.
“Thankfully, there wasn’t anyone inside the ship overnight.”
There are currently six fire crews from Paihia, Kerikeri, Kawakawa and Whangārei at the location, as well as a fire investigator.
“We’re also working with local marae committee to ensure safety of nearby residents,” Mitchell Brown says.
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Banking – ASB drops mortgage rates for the seventh time this year

Source: ASB

ASB has today reduced several of its fixed home lending rates by up to 20 basis points, marking the bank’s seventh fixed rate mortgage drop in 2025. ASB has also lowered some of its term deposit rates by between 5 and 20 basis points.

ASB’s Executive General Manager Personal Banking Adam Boyd says “Interest rates remain a hot topic of conversation, with homeowners and first home buyers watching the market closely.  Whether you’re looking to fix or float, today’s drops to our fixed lending rates across short and medium terms, along with our lower variable rates announced last week, give New Zealanders a range of appealing options to consider.”  

All rate decreases are effective immediately.

 

  Fixed home lending term

Previous rate

New rate

Rate decrease

6-month

5.59%

5.45%

– 14 bps

1-year

4.99%

4.95%

– 4 bps

18-month

4.99%

4.89%

– 10 bps

2-year

4.99%

4.95%

– 4 bps

3-year

5.35%

5.15%

– 20 bps

 

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Banking – ASB Business Survey: The impact of Trump’s tariffs, according to Kiwi businesses

Source: ASB

Research released today by ASB, supported by Talbot Mills Research, shows Kiwi businesses see US tariffs as more impactful than Covid-19 or the Global Financial Crisis.  More than 300 business leaders, including CEOs and founders, contributed to the study, giving their insights on President Trump’s recently announced trade policies.

 

  • Two-thirds (67%) of businesses are concerned about the impact of proposed US tariffs in the next 12 months, with nearly 80% of exporters concerned
  • Kiwi business leaders believe Trump’s tariffs will have a more severe global impact than Covid-19 and the GFC
  • Meat, dairy and wine are seen as the most vulnerable within Food and Fibre sector, while businesses predict wool and seafood would fare better
  • Nearly one-quarter (24%) of Kiwi businesses see at least some opportunity in the tariffs
  • More than one-third (39%) of respondents listed support of banks as critical to navigating the current environment

 

Tariffs: a threat and an opportunity for Kiwi businesses

ASB’s Executive General Manager Business Banking Rebecca James says: “We’re seeing sustained market volatility with the ever-changing political decisions around tariffs, which naturally creates a heightened sense of uncertainty for businesses. It’s clear businesses view any proposed US tariffs as troubling, but it’s pleasing that nearly a quarter of respondents see opportunity in tariffs too. New Zealand has a reputation on the world stage for ingenuity and a can-do attitude, and we want businesses to know there are things they can do to future-proof and manage risks in turbulent times.”

President Trump first announced tariffs in April as part of the 'America First' trade policy, aimed at protecting US industries and addressing the trade deficit. The tariffs are set at 10% for most countries, including New Zealand, with China a notable outlier where a larger tariff has been applied to Chinese origin goods. Additional proposed tariffs higher than the 10% baseline were paused for a 90-day period and will be reviewed in July.  Businesses are split on how long potential disruption could last.  A slight majority (51%) of Kiwi businesses are optimistic that the economy will recover quickly, while 38% predict a prolonged economic downturn for the country and the remainder were unsure.

Taking action key to growth

14% of those surveyed view US tariffs purely as an opportunity, while 10% see them as both a potential risk and an opportunity. Ten percent of businesses and 14% of exporters have already taken action to reduce the negative impacts of tariffs including raising prices, shifting markets or cutting costs. Just under one-third (30%) believe they can make up losses through new customers or cost savings; 25% from operational efficiencies, and 22% from other revenue streams. 22% are unsure, with uncertainty highest among small businesses.

“The current market volatility and geopolitical tension may be our ‘new normal’, but we’ve been in positions of global uncertainty before and the research shows Kiwi businesses are already thinking about actions they can take to make their business more resilient and generate returns.”

Ms James encourages businesses to stay connected to industry partners, trade advocacy groups and their banks to share knowledge and ideas when it comes to growth and scale.

“Business customers are relying on us more than ever to navigate the current environment, and we’re seeing this through an increase in trade finance and a rise in currency hedging enquiries. Our advice is to start exploring options now. We’re seeing customers adapting their business strategy in all sorts of ways, so solutions for your business might look like assessing AI to improve workflow, adjusting your supply chain, selling down stock before new inventory orders, building new trade relationships or exploring untapped markets.”

Businesses shifting their focus to closer to home

More than three-quarters of Kiwi exporters expect the cost of doing business with the US to increase by 10% or more in the next year. Concern is higher among exporters (78%) and increases with business size, with worry growing to 88% among 100+ staff businesses). The potential impacts of tariffs which were of the most concern to businesses include slowing economic growth (39%), increased operating costs (32%) and supply chain disruptions (28%).  Nearly one-quarter of businesses are worried about consumer backlash due to price inflation (24%), along with 23% who see a China-US Trade war as unsettling for business. Some of the most explored markets by businesses are China (51%), Australia (37%), European Union (28%) and Southeast Asia (25%).  

“The research shows a pendulum swing when it comes to trading partners, with businesses redirecting their attention to our close neighbours. Location seems to be king, with our customers prioritising relationships much closer to home,” says Ms James.

“We’re also seeing exporters maintaining high standards and doubling down on premium products to give us an edge on the global stage, even where it costs more for consumers.”

The role of banks as a critical support function

Businesses see Government lobbying as the most critical tool in helping to reduce the impact of tariffs, with banks the next most important. More than one-third (39%) of respondents listed support of banks as critical, specifically working capital support (31%), risk advice (26%) and trade finance (24%).

“ASB has provided $4.6 billion dollars to Kiwi businesses over the past five years including considerable support to companies looking to expand and navigate opportunities abroad. We have seen increased use of trade finance products, aided by trade credit insurance, enabling businesses to sustainably leverage balance sheets while derisking payment default. We encourage companies doing business overseas to speak with their banker and engage with a trade specialist to ensure your business is in the strongest position,” says Ms James.

Notes: Results in this report are based upon questions asked in a Talbot Mills Research online survey. The basis of the sample is 344 New Zealand business leaders (business owners, C-suite, senior management), with the survey in field between 24 April and 5 May 2025.

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Consumer NZ – The sale of a top-rated power company signals a shrinking market

Source: Consumer NZ

Flick Electric has been rated New Zealand’s top power company in Consumer NZ’s latest energy retailer survey — coinciding with its sale to gentailer, Meridian.

Flick Electric has been named New Zealand’s top-rated power company in Consumer NZ’s latest energy retailer survey – but the win comes with an unexpected twist.  

Flick achieved a standout satisfaction score of 71% (very satisfied), earning a People’s Choice award. Flick was recently sold to Meridian Energy – the parent company of Powershop, which failed to meet the People’s Choice standard in 2025.

In contrast to Flick, Powershop, a seven-time People’s Choice winner since 2015, has seen a notable drop in satisfaction – from 67% in 2024 to just 60% this year, pushing it out of the top tier for the first time in years.

“Flick has consistently rated well in our surveys, so it’s disappointing to see it absorbed by a larger player,” says Jessica Walker, Consumer NZ acting head of research and advocacy.

“Flick customers have been typically among the most satisfied. We don’t know what the future holds for Flick customers, but there is a risk it will be consumers who will bear the brunt of reduced competition.”  

The poorest performers this year are Pulse Energy (41%), Contact Energy (44%) and Mercury (47%). Contact Energy and Mercury are two of the largest energy providers in the country and are known as ‘gentailers’, electricity companies that both generate and retail electricity directly to households.  

Meridian Energy was the third-best performing power provider in the survey results and notably the highest-ranking of this country’s four gentailers.  

Frank also earns People’s Choice, but sector-wide ambivalence is up  

Frank Energy joins Flick in receiving a People’s Choice award, with 65% of its customers reporting high satisfaction. However, broader tr

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Education – Kilikiti bats bring Ara campuses together for Samoa Language Week

Source: Ara Institute of Canterbury

Samoan kilikiti pate (cricket bats) specially hand crafted and decorated by students will be at the centre of Gagana Samoa (Samoa Language Week) celebrations at Ara Institute of Canterbury.
In a first for Ara, a tournament will take place bringing together teams from across the institute to play the Pacific nation’s favourite sport.
The event is the vision of Ara’s Te Whatu Ora funded Pacific lead in Mental Health and Wellbeing, Greg Galovale, who wanted to involve trades students in a community project with a fitness focus.
“I was seeking to promote joinery in the Pacific space but also health, wellbeing and community,” Golavale said. “Our Level 3 Pre-Trade joinery tutors Tim and Jody saw the prototype and got right behind the idea. The end result is fantastic!” he said.
Kilikiti bats were also made, decorated and gifted to key community groups who participated in Moana Health workshops to launch Gagana Samoa on campus. The event followed the 2025 theme ‘Ia malu lou sā. Folau i lagimā – a well-grounded self is a successful self.’
The Wednesday kilikiti tournament will see teams from Ara’s Woolston, City and Manawa (nursing) campuses line up alongside a team made up of the joinery students who crafted the bats.
Joinery student Theresa Desouza said it had been a rewarding project and she was looking forward to the event.
“I’ve lived in a lot of different countries, so I grew up very multiculturally. This opportunity to engage in another culture and build community has been beautiful,” Desouza said.
Student Advisor Pacific (Fautua ma So'oupu) Rev. Fitifiti Luatua visited the Woolston campus to share insights and first-hand experience of the game with the class.
Fergus Gaughan said he’d enjoyed learning about the history of kilkiti and the stories behind the bat design.
“This project has also brought me back to why I started getting interested in woodworking. I enjoy working with raw timbers and shaping them. Being able to take something unrecognisable and turning it into art resonates with me,” he said.
Joinery tutor Tim Melker said incorporating the project into coursework had been straightforward as the skills involved in making the three-sided bat were similar to aspects of furniture making.
“Our learners started with a square block. We used a jig and other machinery to cut off the bulk and then hand tools to fine tune it,” he said. “But the standout aspect has been the cultural awareness we’ve gained through learning about the sport, having Rev share insights into the design of the bats and his experiences of playing in Samoa.”
Tutor Jody Pehrson added the class had created a legacy item through the project and the energy in the workshop told its own story.
“The proof is in the engagement. Everyone has been focused on creating a bat worthy of the sport and now they want to go and play the game. We’ve all learned a lot,” he said.
Once the bats left the hands of the trades learners, they were decorated and embellished by a team led by third-year Bachelor of Design (Applied Visual Art) student Lydia Iosefo.
“I do a lot of stencil work in my study, so this drew on that with some traditional patterning,” Iosefo said. “As a bonus, this will count towards my professional practice hours which tests our ability to work with clients and deliver projects on deadline.”
Golavale said he was pleased the project had resonated with all those involved and he was looking forward to the inaugural kilikiti tournament – rain or shine.
“If the weather doesn’t play ball we’ll head to the Whareora. We’ll be ready for some fun and expect plenty of banter,” he said. 
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Privacy Commissioner – Supermarket trial of FRT: Inquiry results announced

Source: Office of the Privacy Commissioner

Privacy Commissioner Michael Webster has found that the live facial recognition technology model trialled by Foodstuffs North Island is compliant with the Privacy Act.
However, his Inquiry report released today, shows that any business considering or using FRT needs to make sure it sets things up right to stay within the law.
“While the use of FRT during the trial was effective at reducing harmful behaviour (especially reducing serious violent incidents) it has also shown that there are many things that need to be taken into account.
“FRT systems have potential safety benefits, but they do raise significant privacy concerns, including the unnecessary or unfair collection of people’s information, misidentification, technical bias which can reinforce existing inequities and human bias, or the ability to be used for surveillance”.
“These issues become particularly critical when people need to access essential services such as supermarkets. FRT will only be acceptable if the use is necessary and the privacy risks are successfully managed”.
The purpose of the Privacy Commissioner’s Inquiry into Foodstuffs North Island’s trial use of live FRT was to understand its privacy impacts, its compliance with the Privacy Act, and to evaluate if it was an effective tool in reducing serious retail crime compared with other less privacy intrusive options.
The Inquiry found while the level of privacy intrusion was high because every visitor’s face is collected, the privacy safeguards used in the trial reduced it to an acceptable level.
“Foodstuffs North Island designed the privacy safeguards used in the trial with feedback from my Office. This has provided some useful lessons for other businesses which may be considering using FRT.”
The main privacy safeguards in place during the trial were:
– Images that did not result in a positive match were deleted immediately, as recommended by OPC – this meant there was very little privacy impact on most people who entered the trial stores
– The system was set up to only identify people who had engaged in seriously harmful behaviour, particularly violent offending
– Staff were not permitted to add images of children or young people under 18, or people thought to be vulnerable, to the watchlist
– There was no sharing of watchlist information between stores
– During the trial, the operational threshold that triggered an FRT alert was raised from 90% to 92.5% likelihood of the images matching, reducing the chances that people would be misidentified while managing down the “computer says yes” risk
– Match alerts were verified by two trained staff, ensuring that human decision making was a key part of the process
– Access to the FRT system and information was restricted to trained authorised staff only
– Images collected were not permitted to be used for training data purposes
– Systems were reviewed and improved during the trial where misidentifications or errors occurred.
“There is still some work to do to increase the safety and effectiveness of FRT software use in the New Zealand context, as FRT technology has been developed overseas and has not been trained on the New Zealand population.
“As a result, we can’t be completely confident it has fully addressed technical bias issues, including the potential negative impact on Māori and Pacific people. This means the technology must only be used with the right processes in place, including human checks that an alert is accurate before acting on it.”
“Some improvements will also need to be made by FSNI before the use of FRT is made permanent or expanded to more stores. These focus on ensuring the documented processes and system settings are updated to match what happens in practice, including ongoing review of the use of FRT to make sure its use is justified as an effective tool for reducing serious harm offending.
“I also expect that Foodstuffs North Island will put in place monitoring and review to allow it to evaluate the impact of skin tone on identification accuracy and store response, and to provide confidence to the regulator and customers that key privacy safeguards remain in place.
“The trial findings will help other businesses to ask the right questions about whether FRT is necessary and appropriate for them and to understand what they would need to do to set FRT up and run it in a privacy protective way.”
The report sets out my expectations for the use of FRT across nine key areas, says the Privacy Commissioner.
The FRT trial started on 8 February and ended on 7 September 2024 and ran in 25 supermarkets. During the trial, 225,972,004 faces were scanned (includes multiple scans of the same person), with 99.999% of these deleted within one minute, and there were 1742 alerts of which 1208 were confirmed matches.
OPC is currently developing a Biometric Processing Privacy Code, which applies to biometric information, including a photo of someone’s face used in a Facial Recognition System. The new Code is expected to be published in mid-2025. The Biometrics Code is designed to provide guardrails for the safe use of biometrics generally, including FRT, in New Zealand.
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Government Cuts – Government guts WorkSafe – CTU

Source: New Zealand Council of Trade Unions Te Kauae Kaimahi

The Minister for Workplace Relations and Safety’s announcement today on gutting WorkSafe’s enforcement capability signals a return to a failed approach, that will weaken our health and safety system, said the New Zealand Council of Trade Unions Te Kauae Kaimahi.

“A soft approach to poor health and safety was a critical failing that led to the Pike River mine disaster, one of the worst health and safety failings in New Zealand history,” said NZCTU President Richard Wagstaff.

“Brooke van Velden continues to systematically gut WorkSafe to help protect businesses from enforcement of breaches of the law, rather than protecting the workers who suffer huge rates of injury and fatality as a result of work.

“WorkSafe was established in the wake of the Pike River mine disaster. It was clear that we needed a well-resourced, effective, and strong regulator, that was prepared to prosecute where necessary, as this was clearly lacking.

“Every week a worker is killed on the job on average in New Zealand, and 17 more are killed from the impact of work-related illnesses and diseases. Every year there are over 30,000 injuries suffered that require more than a week away from work. Nothing in these announcements will have a positive effect on these numbers.

“In the past few years, WorkSafe has endured cuts to the tune of millions of dollars, resulting in fewer staff. Since it was established the WorkSafe inspectorate has reduced from 8 per 100 thousand employees to 6.5, amongst cuts to the wider WorkSafe staffing levels.

“The Minister’s decision to gut WorkSafe is a reflection of a government that is prioritising profits over people,” said Wagstaff.

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Heritage New Zealand – New education resource on Ōtūmoetai Pā released

Source: Heritage New Zealand
A new multi-media education resource highlighting the unique heritage features of Tauranga’s Ōtūmoetai Pā has been launched and is now available to check out.
The learning module can be found on the LEARNZ website (see link below) and features video interviews and a wealth of historical and other information that will be useful for students and those who have an interest in the history of Ōtūmoetai Pā and its surrounding area. It also covers the role of Heritage New Zealand Pouhere Taonga with archaeology.
The series of videos include interviews with kaumatua Koro Des Tata (Ngāi Tamarāwaho), kaitiaki Barry Ngatoko (Ngāi Tamarāwaho) and Dean Flavell, the Pouarahi for the Tauranga Heritage Collection. Together they look after an important archaeological collection including taonga from excavations at Ōtūmoetai and the wider Tauranga Moana district until the new museum is built.
Tauranga-based archaeologist Ken Phillips is also interviewed along with Heritage New Zealand Pouhere Taonga staff based in Tauranga, including archaeologists Dr Rachel Darmody (Ngāi Tahu) and Eleanor Sturrock; and Pouarahi Te Haana Jacob (Te Arawa, Ngāi Te Rangi, Ngāti Ranginui).
“This is a teaching resource that is perfect for the classroom as well as home research and learning,” says Heritage New Zealand Pouhere Taonga Director Regional Services Pam Bain, who coordinated the education initiative.
“The content relates to different strands of the curriculum including Te Ao Tangata – Social Science; Pūtaio – Science; Ngā Toi – Arts; and Hangarau – Technology, to name a few. The stories are readily accessible and targeted to students, though people who may not have been in a classroom for many years should check out the link for sheer interest value. The material is fascinating.”
Every year LEARNZ offers a variety of online field trips allowing students to connect with people and places around New Zealand and beyond. The online trips incorporate video, audio and written materials providing interactive experiences for students that aim to spark curiosity, activate prior knowledge and build learning.
The LEARNZ online field trips have generated a huge amount of interest according to Clive Francis, LEARNZ Project Manager at Tātai Aho Rau Core Education.
“It shows there is a real appetite for schools and kura to learn about Aotearoa New Zealand’s histories,” he says.
“We are very grateful to the interviewees, the Ministry of Education and Heritage New Zealand Pouhere Taonga for their support to enable the field trip to happen.”
Heritage New Zealand Pouhere Taonga cares for 46 historic places around the country – many of which are open to the public and tell diverse stories. These range from New Zealand’s oldest building, Kemp House in Kerikeri to Totara Estate near Ōamaru, the farm that sent the first shipment of frozen lamb to Britain in 1882 – and almost everything in between.
“Ideally students are able to visit these places for themselves, though realistically not everyone can do that,” says Pam.
“LEARNZ provides wonderful alternative learning epxeriences for students that are the next best thing to being there.”
The most recent Heritage New Zealand Pouhere Taonga field trip organised through LEARNZ reached about 12,000 students through 98 educators around the country – an amazing result that shows the power of online learning and the widespread interest in heritage.
“Tapping into this technology can bring our history alive and straight into classrooms around New Zealand – and even the world,” she says.
Check out the Ōtūmoetai Pā learning experience for yourself: https://www.learnz.org.nz/Otumoetai251