Why this is important to Wisconsin businesses: A list of major projects Wisconsin companies can take part in
Auckland, New Zealand’s largest city, is home to about 1.5 million people and is considered the country’s economic powerhouse. In 2015, Auckland contributed about $67 billion (NZ$88 billion) to New Zealand’s economy, representing over 36 percent of the national GDP. Spurred on by positive growth in the finance and professional service industries as well as a booming construction sector, Auckland’s local economy rose by about 30 percent between 2010 and 2015, and this trend is forecast to continue. To encourage continued growth in Auckland and similar success in cities across New Zealand, as part of the 30 Year Infrastructure Plan, the New Zealand government estimates that $80 billion (NZ$110 billion) will be spent on infrastructure projects through 2025.
Immediate opportunities exist for Wisconsin companies in New Zealand, as a number of major projects are either in progress or at the design and planning stages. As of November 2016, the New Zealand government had 53 major capital projects in progress worth $27 billion (NZ$37 billion), with transportation projects receiving the most funding. Much of the investment is being driven by the Roads of National Significance program, a long-term project worth $8 billion (NZ$11 billion) that includes work on road projects around New Zealand’s five largest population centers, including Auckland, Hamilton and Wellington.
New Zealand’s booming new housing construction market also presents significant opportunities for Wisconsin companies. Auckland dominates national demand for new housing, with new dwelling permits in Auckland projected to exceed 94,000 from 2014 to 2021. In November 2016 alone, the value of permitted building work in New Zealand was worth a total of $1.2 billion ($NZ1.6 billion).
Major projects of potential interest to Wisconsin companies include:
- $2 billion to $2.5 billion (NZ$2.8 - $3.4 billion) for the design and delivery of Auckland’s City Rail Link. The main work is expected to start in 2017-18, with completion in 2023-24. Expressions of interest are now being accepted for Contract 7: Systems, Integration and Commissioning Procurement.
- $1.75 billion (NZ$2.7 billion) for the Western Ring Route. Opportunities currently in the design stage include the SH16 Lincoln to Westgate project and the Auckland Northern Corridor.
- $900 million to $1.35 billion (NZ$1.25 billion to NZ$1.85 billion) for the East-West Link. Currently in the design phase, the project had the necessary documents and consent applications filed by the New Zealand Transport Agency in December 2016.
- $548 million (NZ$750 million) for the Northcote Development Project, which aims to build 1,200 new homes in the Auckland suburb of Northcote.
Wisconsin companies with experience and expertise in the supply of goods and services to the global construction sector are encouraged to:
- review the projects identified above to identify any areas of opportunity;
- Stay abreast of the major projects identified in the Major Projects Performance Reports and any subsequent updates;
- review and register with the New Zealand government tender website (GETS); and
- consider identifying an in-country partner that can identify and respond to opportunities as they arise.
Wisconsin companies may benefit from attending Auckland Build 2017 (November 2-3, 2017), New Zealand’s premier construction expo and conference, attracting industry leaders and business executives from the local and global construction sectors.