www.engineeringnews.co.nz 7 construction activity and a key determinant of medium and long term trends. Reflecting this, exceptionally high net migration in recent years has been a major contributor to strong growth in dwelling building activity. Net migration continued to surge in 2016 and the latest indication is that these high flows are likely to continue, with the 2017 year ending June set to be another record year of inflow according to estimates. The construction sector will also be supported by the promising outlook for the economy over the medium term. A healthy labour market and persistent accommodative monetary policy settings are expected to provide a boost to domestic consumption and business investment while the strong tourism sector will continue to lend support. Building activity in the coming year and beyond is likely to still be led by Auckland. Several factors that will contribute to the Auckland dwelling sector include strong population growth through migration inflows, housing stock deficiency and the implementation of the Auckland Unitary Plan. Furthermore, still tight supply in the office, retail and industrial sectors in particular will see non-residential building activity in the Auckland region running at fairly high levels over the forecast period. Building activity in other regions is also improving, backed by positive underlying economic fundamentals that have underpinned investment growth. It is worth noting that these fundamentals have been facilitated by the strong economic performance of the Auckland region, with the fastest growing smaller regions – Hamilton, Waikato and Tauranga – mostly located within close proximity. Leasing activities for commercial and industrial property are expected to remain strong amid tight supply in the coming years. Positive business and consumer sentiment on the back of continued strength in the domestic economy will drive demand for office, retail and industrial buildings in the coming years. However, new supply coming online in the near term is likely to result in slower growth in commercial property rentals, and higher vacancy rates that would bring the market back to an equilibrium. Forecasted strong population growth is expected to generate greater demand for social and institutional, as well as retail and office buildings over the longer term. The total value of non-residential building authorised is forecast to move into a downturn over the outlook period, mainly because the majority of developments in the Canterbury rebuilding effort are now underway. As is the case in the dwelling sector though, fervent building in Auckland will provide a floor to building activity. It’s expect that civil engineering construction will expand moderately over most of the forecast period. Road related infrastructure spending will benefit from government initiatives including funding for the National Land Transport Programme, while rail and communications related expenditure will be more modest. product before we officially entered the Australian market in our own right!” It wasn’t all about dwelling on the past though, with Gates leaders looking to the future in their formal speeches. Many of the comments centred on what makes Gates such a stable face in the automotive industry, durable despite the challenges abounding in the current market. Teng Seen Khoo, vice president of East Asia, said many of those he had spoken to described Gates as offering “quality”. It was a theme that ran throughout the night, with many Gates distributors and partners highlighting the quality of Gates parts as a reason to continue using its belts, hoses and other products – ensuring Gates Australia’s success into the future, for another three decades and beyond. “We’d really like to thank all of those who attended, those who couldn’t make it, and everyone who has been a part of the Gates Australia story so far,” says Ms Robb. “Without your support, we wouldn’t be where we are today. We’re looking forward to another three decades of business in Australia.” Members of the field sales team (left to right): Leon de Waard, Gene Halden, Tony Castellino, Neil Thomson, John Wilson, Garry Handke and Matthew Cook N E W S
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