Māori construction businesses deliver jobs and growth in regions

Height has completed a report on the broad social and economic impact of Māori construction businesses across regional Aotearoa. 

The construction sector is the single largest employer of Māori in Aotearoa, with over 45,000 Māori working across utilities, civil works, and related trades.

Height CEO and Founder, Warner Cowin, says that Māori construction businesses catalysing broader social and economic change is not just an aspiration, it’s already a reality.

“Through our research, we found that for every $1 invested in wages, an additional 58c was generated for New Zealand, largely due to people coming off a benefit or training and into secure employment.”

Across Aotearoa, Māori businesses and iwi are critical in building resilient regional economies. Over the past four years, Height has worked with many iwi/hapū and over 120 Māori businesses as part of the Te Puni Kokiri (TPK) Capability Uplift Programme, to support the delivery of government contracts and to strengthen subcontracting opportunities within major infrastructure projects. 

This mahi shows that investment in these businesses creates value far beyond the construction site. A significant proportion of employees in these businesses are apprentices or trainees, and many are people who were previously unemployed or disconnected from education and training. 

"These businesses provide real jobs, pastoral care, and long-term stability to whānau who have been underserved for too long," says Warner. 

“The real opportunity here is for government agencies to recognise the value of Māori businesses through their procurement and investment, particularly in regional New Zealand.”

Key insights from surveying Māori businesses:

• Social and fiscal return – for every $1 invested in wages, Māori businesses generate an additional $0.58c in social and economic benefits.
• Apprentices and NEET employment –14% of employees are apprentices or trainees. 13% were previously Not in Employment, Education or Training (NEET). For context, each NEET costs the government approximately $30,000 per year in benefits, and a person on Jobseeker Support costs, on average, ~$241,000 in benefits over their lifetime.
• Value for money – government agencies' direct engagement with SMEs can result in 5 -12% cost savings.  These businesses are already embedded in communities and provide wraparound support to employees.
• Barriers to address – the biggest challenge for Māori businesses when working with government procurement teams is cultural safety, including a lack of Māori representation on procurement teams, overly onerous precondition qualifications, and bundled contracts that exclude smaller players.

Read the full report here: Regional Development and Māori Economic Opportunity and Benefit Report - FINAL.pdf

Photo: ARC Asbestos Removal and Demolition run a thriving business in Palmerston North.