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Fortune seekers once came from all over the world to search for gold in Otago.
Now steel and concrete are the card of attraction, but there is a worker shortage in the region’s decade-long construction boom.
A new study commissioned by the Ministry of Social Development (MSD), Dunedin City Council and Aukaha estimates that an additional 1,000 construction workers will be needed for each of the next 10 years.
That’s what is driving the construction of the new Dunedin Hospital, valued at $ 1.4 billion, considered one of the largest infrastructure projects in the country. It will require 1000 workers at its peak.
And in the entire region, which has a population of 225,000, there are more than 120 large construction projects.
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As part of the study, a breakdown of those projects showed that Dunedin accounted for $ 3.3 billion and the interior of Otago (primarily Queenstown) accounted for $ 6.4 billion.
The study noted that 90 percent of project spending in Dunedin was driven by the public sector, compared to inland Otago, which was 90 percent private or commercial.
“There is also a considerably higher risk that projects will not take place inside Otago, as commercial investors are more likely to delay or change plans if economic or labor market conditions deteriorate,” the report noted. which was written largely before Covid-19.
John Edens / Stuff
Inland Otago, primarily Queenstown, accounted for $ 6.4 billion of construction spending.
Attracting the significant number of required workers was difficult within the region due to low unemployment, but hiring locals would benefit the region in the long run.
The report also raised concerns about attracting people from other industries: “For example, if a large number of hospitality workers moved into construction in Queenstown, there might be enough workers to build new hotels but no one to equip them.”
The new construction of the Dunedin hospital may have a detrimental impact on primary and manufacturing sector employees in the city, for the same reason.
The report noted that to fill the gap between labor supply and demand, companies needed to consider greater diversity, particularly women.
“Attracting more women into the sector and making the sector a more attractive place to work would have significant benefits in terms of meeting demand, but also broader benefits that come from having a more diverse workforce.”
Hamish McNeilly / Stuff
The rebuilding of Dunedin Hospital is underway at the old Cadbury site.
But accommodation for workers was a problem throughout the region and existing buildings could be reused, or even small houses would be used as accommodation for workers.
Workers’ villages were used in a number of large buildings in New Zealand, even after the Christchurch and Kaikōura earthquakes.
“This type of accommodation can be the solution to a short-term need, but it can also intensify a number of social problems such as high drug use, crime and domestic violence,” says the report.
One option in Dunedin could be to build a residence to house the workers and then hand it over to the university or polytechnic to use as student accommodation after the reconstruction of the hospital is completed.
The report was described as the “first study of its kind” by MSD Regional Commissioner Jason Tibble.
“It is a great example of interagency collaboration, and it has highlighted tremendous opportunities for the economy and areas we must focus on when it comes to training our clients.
Dunedin Mayor Aaron Hawkins said that despite the significant challenges 2020 had presented, it was encouraging to learn that close to $ 10 billion in projects were slated to roll out in Otago broader over the next 15 years, of which $ 3.3 billion would be primarily focused on Dunedin.
“The impact will reach the entire community, in new skills and trades for our residents, a thriving sector of professional training, stable employment and the associated economic benefits that all this will bring.
