In April we surveyed ACE New Zealand members to understand:
- the immediate impacts of COVID-19,
- what is driving these impacts, as well as
- member attitudes regarding the future of our sector
We heard from 138 firms who employ more than 11,000 staff. This represents a response rate of approximately 64% of member firms and market coverage (as measured by fulltime equivalent employees) of more than 80%
It’s safe to say that COVID-19 has had a significant impact. Both in terms of cash flow and service demand.
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It was very clear from responses that not all markets have been affected equally. In general, members felt far more positive about market sectors which had significant central government involvement, and well signalled forward pipelines and funding.
Transport is the most obvious example, with 94% of respondents indicating a positive outlook. The water sector also retained a good deal of confidence (67% positive).
In market sectors where the government plays a smaller role, there was significantly less confidence. The most evident examples of this are in the buildings, architecture and design market (43% negative) and land development and surveying (46% negative).
Capacity for additional work
While there was still capacity for extra work across all market sectors, it was evident that not all markets have been affected equally. In line with the market confidence findings, the capacity for additional work was lower in areas with significant government involvement, well-signalled pipelines, and funding. Transport and water were, once again, the most prominent examples.
In market sectors where the government plays a smaller role, additional capacity was markedly higher. The most evident example of this is the buildings, architecture and design market where 91% of firms indicated they had additional capacity, and concerningly 44% of firms had significant extra capacity. Areas with excess capacity are those most likely to be impacted by job losses.
Feedback was that given the unequal impacts, any government stimulus-response should place additional emphasis on funding projects in sectors with the lowest confidence and most significant extra capacity.
Targeting funding in this way will ensure that we have a fair and balanced response, manage capacity constraints in some areas, and importantly keep the maximum number of industry professionals gainfully employed.
COVID-19 Alert Level 3 permitted travel
One of the consistent questions I have been getting is what travel is and isn’t allowed under Alert Level 3. The guidance on some government sites has ambiguous or conflicting information, which has caused some confusion. So, I thought it best to clarify our understanding
New membership applications
We welcome your feedback on our recent applications for membership:
- Southern Civil Consulting
- Collective Success
- McKenzie and Co Consultants
If you have any comments on the suitability of these firms for admission as ACE New Zealand members, please contact Michelle Sloanmichelle@acenz.org.nz
We've moved our events to webinars:
Data protection essentials with Paul Ramsbottom
10am, Thursday 7 May
Managing Director at Advanced Solutions International, Paul Ramsbottom will explain how to protect data and safeguard your organisation's reputation by mitigating risk. Gain valuable insights to help protect your organisation before a data breach occurs.
Client experience in consulting, engineering and the built environment
Hear from beaton Research and Consulting partners Jon Huxley and Paul Hugh-Jones as they discuss their latest findings on customer experience and how crucial it is for professional services firms looking to differentiate their business.
Find out more and register
Climate change - Decarbonising transport by 2030
2pm, Friday 15 May
Founder of the 1point5 Project, Dr Paul Winton, discusses his research on how we can keep within a 1.5°C temperature rise by 2030, and the critical role transport plays.
Catch up on our past webinars
If you've missed any of our recent webinars, watch the recordings:
Kia pai tō rā, Paul and the ACE New Zealand team
Local Government will play a pivotal role in the country’s recovery from the COVID-19 pandemic, but political infighting may derail their efforts.
Lessons from Christchurch
The post-Christchurch earthquake period saw the most significant infrastructure spend in memory, but did the Government fully capitalise on the opportunities?
Taxpayer money won’t stretch
Councils have identified 1800 ‘shovel ready’ projects, but Crown Infrastructure Partners chairman Mark Binns says it’s unlikely there will be enough money to fund them all.
‘Shovel ready’ project history
There is growing concern that some of the 1800 ‘shovel ready’ projects have been around a while as councils gave been unwilling to fund them.
Increasing footpath width
The Dunedin City Council will investigate joining NZTA’s “Innovating Streets for People” pilot project which will fund the development of extra-wide footpaths and temporary cycleways.
New projects for the West Coast
Among the projects submitted for Government funding by West Coast Councils are floodwalls for Westport and the Franz Josef Glacier township, new bridges and a reservoir for Greymouth.
Kicking the economy into action
Kiwibank chief economist Jarrod Kerr considers whether a one-off $1500 payment to all New Zealanders will light a fire under the economy.
Bike sales boom during the lockdown
Australia’s bike retailers say their products have become the new toilet paper as people look to stay active during the lockdown.
How should we change Producer Statements?
We're working with Engineering New Zealand to improve the Producer Statement forms that you use.
Your feedback is critical to make sure they're fit for purpose. Tell us what would be helpful to you in this short survey