New Zealand Equipment Market Remains Soft — But 2026 Outlook More Promising
The New Zealand equipment industry has had a challenging first half of 2025, with total equipment sales down -17% year on year and projected to hit a 10-year low a drop of more than 50% from the 2022 peak. However, amid these headwinds, there are green shoots emerging for well-positioned suppliers, particularly those with strong service teams, diverse product offerings, and efficient aftersales support
Residential Market Impact
One key driver behind the downturn: standalone housing consents have fallen 25–30% since 2021. This has significantly affected demand for more compact earthmoving machinery. By contrast, medium and large equipment supporting larger projects, infrastructure, and quarrying has shown more resilience.
2026 Outlook & Government Tailwinds
While demand remains patchy, 2026 looks brighter. With interest rates forecast to ease and Budget 2025 unlocking over $6B in infrastructure investment, momentum is expected to return. The government’s renewed focus on roads, public transport, and regional development — along with accelerated depreciation and instant asset write-offs — provides a compelling incentive for fleet upgrades.
The NZESA encourages members to:
- Support clients with fleet renewal planning
- Align inventory and workforce capacity with project pipelines
- Leverage technology for productivity and Co2 emissions gains
- Invest in technical skills and training
Our association continues to advocate for our members and the broader industry — ensuring we’re part of delivering New Zealand’s infrastructure & housing goals. We also strongly encourage the New Zealand Government to continue expanding its pipeline of funded and contracted infrastructure projects. A clear and consistent forward works program will drive confidence, stimulate capital investment, and keep our industry skilled and ready to deliver the projects that New Zealand needs.
We welcome your thoughts — how is your business preparing for 2026?
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