CreditWorks Group

Construction is steadying, suggesting the K-shaped economy is giving one last flicker as the recovery takes hold. Spending has returned to early 2022 levels, but volumes remain low. Stronger companies are paying on time and managing debt, while others face tighter cashflow.

- More new businesses are starting than closing, though growth has slowed since 2021–2022.

- Residential construction is down 20 percent, with the North Island hardest hit and new homes smaller and lower in value.

- Commercial construction is up almost 5 percent, driven by a handful of larger firms.

- Arrears are higher, mostly because larger debtors are stretching payment terms. Subcontractors linked to residential projects are under pressure, while civil and concreting work is steadier. South Island regions are performing stronger.

The takeaway is clear. Residential work in the North Island will remain challenging, but commercial projects and South Island regions offer opportunity. Success comes down to knowing who you back and how well they manage cashflow.

➡️ Read the full report here:https://creditworks.co.nz/wp-content/uploads/2025/10/Construction-Deep-Dive.pdf

Constructive 2025 is almost here, and CreditWorks Group hopes you are coming to this pinnacle industry event.

We are delighted to be Gold Sponsor for this year’s construction industry forum – led by Registered Master Builders Association. Together, we look forward to showing you FINZscore – New Zealand’s first Financial Rating System for the construction industry – a simple A-E scorecard, built from audited financials of Master Builder members, that makes financial trust transparent and accessible.
See you at Constructive 2025!