Apprenticeships and the Knowledge Transfer Gap in New Zealand Construction

Our opinion

Data from MBIE shows that approximately 20 percent of the current construction workforce will reach retirement age within the next decade. The number of tradespeople aged 55 and above has been steadily rising, meaning a significant proportion of the industry’s most experienced practitioners will soon exit the labour force.

At the other end of the scale, apprenticeship uptake remains inconsistent. Research from BCITO has historically shown that only around 2 to 3 percent of school leavers go directly into a trade within a year of leaving school. While apprenticeship starts increased during periods of government incentives, completions have been variable, with dropout rates remaining a concern. This creates a gap not just in headcount but also in the depth of experience within the industry.

The scale of this demographic change matters because construction is heavily reliant on skills that are not always captured in textbooks or formal training. The retirement of a large cohort of experienced builders represents the loss of tacit knowledge that has accumulated over decades of practical application.

The Nature of Tacit Knowledge in Building

Much of what separates a competent tradesperson from an expert builder lies in tacit knowledge. This is the practical understanding developed through experience on site, solving problems that do not always fit neatly into code clauses or standard details. Examples include:

• Sequencing works so that subcontractors are not tripping over each other, saving time and reducing rework.

• Identifying early signs of weathertightness risks in a building envelope before failure occurs.

• Diagnosing structural issues in existing buildings and determining whether localised repair or full replacement is the right option.

• Adapting construction methodology to site-specific conditions such as poor ground stability, tight urban sites, or challenging weather patterns.

• Managing relationships with clients, consultants, and councils in a way that prevents disputes and keeps projects moving.

  
  

These skills are rarely written down, and when they are, they often lack the situational context that makes them useful. Once senior builders retire, much of this knowledge risks being lost permanently, leaving the next generation to relearn it through costly mistakes.

Why the Current System is Not Enough

The existing apprenticeship system provides a solid framework for technical competencies and compliance with New Zealand Building Code requirements. Apprentices graduate with an understanding of NZS 3604, acceptable solutions, and health and safety regulations. However, the system does not ensure that apprentices gain structured, consistent exposure to the higher-level skills that experienced builders hold.

At present, apprentices may rotate between crews or receive training ad hoc depending on the priorities of the job site. This leads to gaps in knowledge, particularly around defect diagnosis, remediation, and complex sequencing. Without structured pairing, the transfer of knowledge relies too heavily on chance encounters and informal mentoring.

A Structured One-on-One Approach

To close the knowledge transfer gap, there is a need for a deliberate, formalised system of pairing apprentices with experienced builders. This would not replace the existing apprenticeship framework but would run alongside it as a targeted initiative.

Key elements of such a system could include:

1. Long-term Pairing

   Apprentices should be paired with a single senior builder for at least the first two years of their training. This continuity allows for the development of trust and ensures the senior has a vested interest in the apprentice’s progression.

2. Dedicated Training Blocks

   One hour each week should be set aside for direct teaching on a live project. This could include practical demonstrations, walkthroughs of completed work, or discussion of why a particular method was chosen.

3. Documentation and Knowledge Capture

   Apprentices should document each training block in a concise illustrated note, which is signed off by the senior. Over time, this creates an internal library of company-specific standard operating practices that can be referenced by future staff.

4. Skill Passporting

   Firms should track apprentice exposure to critical competencies such as set-out, framing, cladding, waterproofing, concrete works, and defect inspections. Progression to more complex tasks should only occur once competence is confirmed by the mentor.

5. Remediation as a Training Ground

   Apprentices should accompany senior staff on remediation and invasive inspections. These projects are where diagnostic expertise is most heavily applied, and they provide a unique opportunity to understand failures and how to prevent them.

6. Exposure to Multiple Typologies

   Apprentices should gain experience across different building types, including education sector builds, remediation projects, and small commercial jobs. This ensures they are not narrowly trained for only one market segment.

   
   
   
   

Industry and Business-Level Payoffs

For apprentices, structured mentoring accelerates the transition from task-based learning to critical thinking and professional judgment. They develop into builders who not only follow instructions but also understand the reasoning behind them.

For construction firms, the benefits include fewer defects, improved productivity, and stronger staff retention. Apprentices who are invested in through structured training are more likely to remain loyal, reducing turnover and recruitment costs. A documented library of methods also provides resilience against staff changes, reducing the reliance on individual memory.

For the wider industry, this approach creates a smoother generational handover. It reduces the risk of systemic knowledge loss, improves the overall quality of the workforce, and helps ensure that building failures linked to poor practice are minimised.

Policy and Industry Support

There is a role for industry bodies and government in supporting this shift. BCITO, Master Builders, and CHASNZ could develop guidelines for structured one-on-one mentoring and incentivise firms to adopt it. Government training subsidies could be tied not just to the number of apprentices employed but to evidence that structured mentoring is occurring.

Firms should not wait for regulation to force this change. The demographic data is clear. With a large portion of the workforce approaching retirement, structured one-on-one mentoring is not optional, it is essential if the industry is to maintain quality and resilience.

Without deliberate action, the retirement of the current cohort of senior builders will result in a significant loss of tacit knowledge, forcing the next generation to relearn through trial and error. Establishing structured one-on-one training between apprentices and experienced builders is the most practical way to preserve and transfer that knowledge.

Sources:

• MBIE, Construction and Infrastructure Workforce Snapshot, 2023–25

• BCITO, Apprenticeship Intake and Completion Data, various reports 2018–2024

• Statistics NZ, Construction Labour Market Indicators, 2024

• CHASNZ, Workforce Development Insights, 2024