The Q1 2025 RLB Crane Index® released today reveals a notable decline in construction activity across New Zealand, with a total of 105 long-term cranes currently operating on sites – a decrease of 19 cranes compared to the previous six months.
This reflects the tough period the nation’s construction industry is experiencing.
Crane numbers drop dramatically from the 2023 peak
According to the RLB Crane Index®, the number of tower cranes sighted across NZ has fallen from a high of 157 in Q1 2023 to 105 cranes currently, a dramatic drop of 33%.
Steve Gracey, Auckland Managing Director and Oceania Chairman of Rider Levett Bucknall (RLB) noted, “The New Zealand construction industry is currently facing significant challenges, reflecting broader economic and policy shifts.”
Major centres see significant reductions
“Over the past six months, there has been a notable 15.3% net drop in crane usage across the major centres, with Auckland’s long-term crane numbers falling by 23.5%. This is not surprising given the ongoing issues in the market,” said Steve.
A key concern is the lack of project commitment beyond the design stages, which has persisted throughout 2024.
Regional crane distribution
In Q1 2025, 105 long-term cranes were recorded across seven key centres:
- Auckland – 52 cranes
- Christchurch – 20 cranes
- Dunedin – 8 cranes
- Hamilton – 2 cranes
- Queenstown – 8 cranes
- Tauranga – 13 cranes
- Wellington – 5 cranes
Public sector slowdown hurts pipeline
Throughout 2024, the government reviewed capital works spending across education, health and social housing sectors following budget blowout concerns and a high inflationary environment.
This review and the halting of many live projects have now resulted in a scarcity of on-site projects and forward pipelines in these areas, with only a handful of long-term cranes operating in New Zealand in these sectors currently.
Commercial and residential markets under pressure
The commercial market has also been affected, with high interest rates and reduced valuations drying up the pipeline over the last two years. The residential sector has struggled since early 2023, with progress slowing on multi-unit residential projects and small townhouse subdivisions significantly reduced due to high volumes of unsold new stock.
Construction value falls, but some subsectors see a lift
Steve continued, “Work put in place across the country saw a fall of $2.3 billion or -6.4% for the 2024 calendar year, with residential work contributing $2.4 billion to the overall fall in work. Activity increases were seen across the non-residential sectors, especially in the health and civic subsectors.”
Consents fall, but infrastructure projects offer hope
Consents across New Zealand fell by $1.5 billion, or 5.1%, during CY 2024, almost entirely due to the drop in residential consents. Auckland’s market appears to be at its lowest point, with major infrastructure projects such as the City Rail Link and the Central Interceptor nearing completion.
Early signs of recovery are emerging, particularly in large roading and water infrastructure projects, although these remain in the planning stages.
Crane index outlook points to continued pressure
The RLB Crane Index® noted that new data centres of increasing scale continue to be planned, although current crane activity for this sector has dropped from seven to one long-term crane.
Steve continued, “Tier 1 contractors have seen several early contractor involvement (ECI) projects put on hold at the design, consent, or site enabling stages. Few new cranes are expected in their near-future pipeline.”
Industry braces for a crucial government budget
Contractors, sub-contractors and consultants are facing tough times. The upcoming May 2025 government budget will be crucial for the construction industry, shaping the 2026 project pipeline and marking the halfway point of the government’s current three-year tenure.
Naylor Love, which had a record nine vertical-build cranes in Auckland in Q3 2024, now has only one – underscoring the sector’s broader challenges and uncertainties.
The residential sector hits a low, with few bright spots
Residential cranes now make up only 24.8% of all cranes in New Zealand. Queenstown and Wellington were the only regions to record an increase, with an additional two and three long-term cranes, respectively.
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