Kennards Hire survey indicates softening confidence

Kennards Hire’s annual confidence survey found a softening of confidence levels compared to 2025 in both Australia and New Zealand, although more than three quarters of the 617 respondents remain confident about the future of construction.

Conducted for Kennards by YouGov, the survey was based on responses from 412 business leaders in Australia and 205 in New Zealand.

Some 72% in Australia remain confident in the construction industry growth over the next five years, down from 89% in last year’s survey. Confidence levels in New Zealand were higher, with 84% described as confident, although that is down from 93% last year.

This is the fifth year that Kennards Hire has conducted its confidence survey.

Infrastructure investment was the strongest anticipated driver of growth over the next five years, cited by 42% of respondents, followed by AI/digital technology adoption (37%) and government policy (37%).

Economic uncertainty was ranked by 48% of respondents as the biggest threat affecting investment and housing demand, while 47% pointed to government policy and planning delays and 43% cited skilled labour shortages.

When asked about the factors influencing the decision to rent rather than own equipment, flexibility across projects (45%) and cost savings or cashflow management (42%) emerge as the most commonly cited drivers.

Tom Kimber, general manager of sales at Kennards Hire, said; “Businesses are continuing to invest in the future, with leaders in the industry still planning for growth, while focusing on flexibility, productivity and operational resilience amid ongoing sector challenges.

“It requires an evolved approach to get the work done - from end-end support and specialist solutions through to additional training for employees.

“The construction industry has always demonstrated an ability to adapt, and these findings show businesses are actively looking for new ways to work smarter, through technology, flexible operating models and better management of resources.”