Kennards Hire has released findings from its Construction Confidence Check, revealing that confidence remains high even as rising costs, productivity challenges and global pressures reshape day-to-day operations.

The report surveyed over 600 senior decision-makers from mid-to-large construction businesses. Nine in ten leaders expressed confidence in the industry’s performance over the next five years. Economic pressure remains a stress factor as 99% of respondents are actively implementing or exploring cost-saving strategies.

Among ANZ business decision-makers who reported experiencing cost impacts from delays or reduced productivity, one in three estimate that these challenges affect an average of 15.5% of a typical construction project’s total cost.

The report also stated that 92% of ANZ construction leaders have been impacted by tariffs, shipping delays and shifting trade regulations in the past year.

The top priorities for ANZ decision makers over the next 12 months include investing in technology to improve project visibility, planning and delivery (60%), outsourcing specialist expertise to fill capability gaps and reduce coordination overhead (51%) and hiring or renting equipment to boost flexibility and avoid idle assets (36%).

“The shift towards on-demand and circular models, like equipment hire is no longer just about cutting costs,” Kennards Hire general manager of sales Tom Kimber says.

“For many businesses, owning equipment simply doesn’t make sense when project timelines are tight, labour is stretched and the pace of change is accelerating. We’re also seeing a rise in outsourcing for specialist expertise – not just to fill skill gaps, but to reduce friction and keep projects moving. These operational shifts are helping businesses stay resilient in an increasingly complex environment.”

Construction firms across ANZ are increasingly embedding sustainability and workforce development into how they operate, with environmental, social and governance (ESG) priorities gaining momentum.

According to the report, 59% said they would prioritise Green Building Council Australia and New Zealand Green Building Council certifications to validate sustainability credentials within their top five ESG factors they are prioritising or investing in. Another 49% are prioritising or investing in eco-friendly tools and carbon offsetting strategies, while 48% are shifting to sustainable building materials within their top five ESG factors.