The 2026 BCI Construction Outlook for New Zealand (collated in June 2025) summarised an industry that was emerging from sustained cost escalation, tight finance, and labour disruption, with discipline and selectivity shaping how projects moved forward.
Since then, confidence has lifted and activity across several sectors has strengthened, reinforcing the Outlook’s view that the market was stabilising rather than declining.
Within the report, Fosters Director Leonard Gardner highlighted cost movement as a continued risk for construction as the market improved.
“Pricing is currently tight due to oversupply and weak demand, but capacity has left the industry. It won’t take much additional demand to expose those constraints, with sharp upward pressure on prices the likely result” he noted. Good construction companies will be able to put procurement strategies in place for projects, mitigating this cost movement risk for clients.
Reflecting on the downturn period, Leonard emphasised the shift in how resilient firms are operating, highlighting a more collaborative and sustainable approach to delivery.
“We’ve learned not to panic in these markets” he said. “Chasing turnover or cutting prices just fuels a race to the bottom. The smarter play is to stick with good clients, accept delays and plan accordingly.”
Established in 1946, Fosters has seen these cycles before. Holding firm to core principles – those being maintaining strong relationships and good people - has guided the business through multiple downturns. As Leonard explained, “We chose to retain our people through that (downturn) period, even when we didn’t strictly need all of them, because when the market recovers, having good people in place is invaluable.” That approach is once again proving its worth as conditions improve.
In short, the outlook is this: stability is returning, momentum is building, and companies grounded in experience, relationships and capability are well placed for the next phase of growth.