New Zealand’s construction and trades sector is facing its most significant workforce challenge in decades. If you’re a trade business owner watching skilled workers leave for Australia or struggling to find qualified staff, you’re not alone. The good news? Forward-thinking Kiwi companies are finding innovative ways to not just survive, but thrive in this tight labour market.
The numbers tell a sobering story. Research by Rider Levett Bucknall shows that New Zealand’s construction sector, which employs 308,500 workers, needs an additional 57,600 people by 2026. According to the Ministry of Business, Innovation and Employment, 46% of construction business owners are having difficulty recruiting tradespeople. This shortage affects everything from residential building projects to major infrastructure developments, creating a ripple effect throughout the property sector.
What makes this particularly challenging for trade businesses is the perfect storm of factors: an ageing workforce with many experienced tradespeople nearing retirement, increased competition from Australian employers offering higher wages, and a younger generation often steering toward university rather than trades training.
For property owners and developers, this translates to longer project timelines, higher costs, and the frustration of watching sustainable renovations or new builds sit incomplete while waiting for available skilled workers.
Many trade businesses are still using the same recruitment methods they relied on twenty years ago – posting job ads and hoping the right person walks through the door. This approach simply doesn’t work in today’s competitive environment, where skilled workers have multiple options and can afford to be choosy.
The most successful companies are recognising that attracting talent requires the same strategic thinking they’d apply to winning major contracts. It’s about understanding what modern workers value and adapting accordingly.
Smart trade businesses are moving beyond the traditional apprentice-to-journeyman model. Companies like Master Plumbers are developing structured career progression plans that show workers exactly how they can advance, from technical roles into project management, business development, or even business ownership.
This approach particularly resonates with younger workers who want to see a clear future rather than just a job. When you can show someone they could be running their own crew in five years or managing major commercial projects, you’re offering more than just employment – you’re offering a career.
The days of “she’ll be right, just watch and learn” training are over. Leading trade businesses are investing in formal training programmes, digital tools, and continuous professional development. This includes everything from safety certifications to business skills training.
Some companies are partnering with polytechnics to offer on-the-job learning that leads to recognised qualifications. Others are using virtual reality training for complex or dangerous procedures, showing they’re serious about both safety and innovation.
Whilst many businesses focus solely on hourly rates when trying to compete with Australian opportunities, the most successful companies take a holistic approach to compensation. This includes performance bonuses, tool allowances, vehicle packages, health insurance, and flexible working arrangements where possible.
Some innovative companies offer profit-sharing arrangements or pathways to business ownership. When workers feel they have a stake in the company’s success, retention rates improve dramatically.
Modern workers, especially those with families, value flexibility. Trade businesses that offer options like four-day work weeks (with longer daily hours), flexible start times, or remote work for administrative tasks are finding they can attract workers who might otherwise leave the industry entirely.
This might mean adjusting project schedules or finding creative coverage solutions, but companies report that the improved worker satisfaction more than compensates for the initial adjustment period.
The construction industry’s reputation for rough workplace culture is driving away potential workers, particularly women and younger people. Companies that actively promote respectful communication, zero tolerance for harassment, and professional standards are finding they can tap into a broader talent pool.
This cultural shift also improves client relationships, as professional crews reflect well on the business and inspire confidence in property owners investing in major projects.
Rather than waiting for qualified workers to appear, successful companies are getting involved earlier in the pipeline. This means building relationships with secondary schools, offering work experience programmes, and partnering with training providers to ensure students learn skills that match industry needs.
Some companies offer guaranteed employment upon successful completion of training programmes, removing the uncertainty that often prevents people from entering the trades.
Modern recruitment happens online. Companies using professional social media presence, showcasing their projects and workplace culture, are attracting workers who want to be part of something they can be proud of. This is particularly effective for reaching younger workers who make career decisions based on company values and culture.
Digital portfolios of completed projects, employee testimonials, and behind-the-scenes content help potential employees understand what it’s really like to work for your company. When you’re competing with companies across the Tasman offering higher base wages, showing a superior work environment and career opportunities becomes crucial.
Some trade businesses are finding success through industry cooperation rather than competition. This might mean sharing training costs, referring overflow work to each other, or jointly investing in expensive equipment that individual companies couldn’t justify purchasing alone.
These partnerships can extend to sharing employees during busy periods or quiet times, ensuring workers have consistent employment even when individual companies experience seasonal fluctuations.
Companies that build strong relationships with property developers, architects, and project managers often benefit from more predictable workflows and higher-value projects. This stability makes it easier to offer workers consistent employment and competitive packages, which in turn improves retention.
When clients trust your company’s ability to deliver quality work on time, they’re often willing to pay premium rates that support higher wages and better working conditions for your team.
Trade businesses outside main centres face additional challenges, including smaller talent pools and competition from urban employers. However, they also have unique advantages – lower cost of living, stronger community connections, and often more varied, interesting work.
Successful regional companies emphasise these advantages whilst addressing common concerns about career progression and professional development through online training, mentorship programmes, and partnerships with larger companies.
Companies like Base44 demonstrate how regional businesses can compete effectively by focusing on quality, innovation, and strong client relationships rather than trying to match urban wage rates directly.
Forward-thinking trade businesses are investing in technologies that make work more efficient and attractive to younger workers. This includes everything from project management software to advanced tools that reduce physical strain and improve job site safety.
Workers who see employers investing in modern equipment and processes are more likely to view their roles as professional careers rather than just jobs. This perception shift is crucial for long-term retention.
Many trade businesses fail to plan for ownership transition, creating uncertainty for long-term employees. Companies that develop clear succession plans, potentially including employee ownership options, create additional incentives for key workers to stay and grow with the business.
This approach also appeals to clients who value stability and long-term relationships with service providers.
Start by honestly assessing your current workplace culture and employee value proposition. Survey your existing team about what they value most and what would make them more likely to recommend your company to others.
Review your recruitment materials and online presence. Do they accurately represent the opportunities and culture you offer? Would they attract the type of workers you want to hire?
Consider partnering with other local businesses or training providers to share costs and resources. Sometimes the solution isn’t doing everything yourself, but finding smart ways to collaborate.
Most importantly, remember that attracting and retaining talent is an ongoing process, not a one-time fix. The companies succeeding in today’s market are those that continuously adapt and improve their approach to managing their most valuable resource – their people.
The skills shortage in New Zealand’s trades sector is real and challenging, but it’s not insurmountable. Companies that approach talent management strategically, invest in their people, and create positive workplace cultures are not just surviving but growing their market share.
The key is understanding that today’s workers have options and making sure your business offers something worth choosing. Whether that’s career development opportunities, modern working conditions, competitive total compensation packages, or simply the satisfaction of working for a company that treats people professionally and with respect.
For property owners and developers, partnering with trade businesses that have solved their staffing challenges means more reliable project delivery, consistent quality, and fewer frustrating delays. These companies may not always be the cheapest option, but they’re often the best value when you factor in reliability, professionalism, and results.
The trade businesses that thrive in the coming decade will be those that recognise skilled workers as partners in success rather than just labour resources. In a competitive market, the companies that treat their people best will ultimately serve their clients best, too.
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