Market Trends of New Zealand Facility Management Industry
This section covers the major market trends shaping the New Zealand Facility Management Market according to our research experts:
Auckland Accounts for Major Market Growth
As a service and innovation-oriented economy, Auckland has developed manufacturing industries and a globally focused service sector. Having a progressive presence of manufacturing industries, the city contributes 37.9% of GDP to the country, according to Stats NZ Tatauranga Aotearoa.
The growth of the Auckland region is mainly due to increased investments from the government in commercial and residential infrastructure. It is expected to positively influence this region's demand for facility management. Furthermore, the reopening of tourism activities in this region post-pandemic is likely to contribute to the growth in the hotel industry, thereby creating demand for facility management services.
In addition, the multinational players prefer to expand their business operation in Auckland owing to several benefits such as a transparent business climate and a government committed to growth and innovation. Also, the presence of robotics, precision engineering with the advanced digital infrastructure, and a highly skilled workforce attract global players to the country, further adding to the demand for facility management services.
For instance, in September 2021, Amazon announced a plan to open three data Centres in Auckland by 2021 with the spending of NZD 7.5 billion to develop three Availability Zones (AZ) in the Auckland region. Such investments and expansions are expected to add demand for facility management services.
Commercial End User is Expected to Hold a Significant Market Share
New Zealand holds high-value growth opportunities for international business and investors. This is due to several advantages such as a stable, transparent business climate, a developed open economy with a free-floating currency, a stable political system, and a government committed to growth and innovation. This resulted in attracting foreign companies seeking to set up in New Zealand and led to the demand for commercial offices and buildings on the rise by the foreign companies and commercial real estate investors.
Though the volume of commercial building work, including shops and offices, has fallen with the pandemic, the demand for commercial properties is gaining momentum post-COVID-19 owing to the requirement of more flexible and local workspaces by companies in terms of space allocation per desk following the pandemic.
The expansion of the international organization in the country has further led to the growth of the commercial sector and is expected to continue over the forecast period. For instance, in May 2021, Crawford & Co announced that it is expanding its offering in New Zealand to optimize its presence in key locations of the country.
Furthermore, in February 2020, Intertrust, a global leader in providing tech-enabled fund and corporate services to clients operating and investing in the international business environment, opened an office in Auckland.
