New Zealand’s engineering sector is facing a severe crisis as stalled infrastructure projects lead to mass job losses and an exodus of skilled workers. Industry leaders are warning of long-term consequences if the government does not take urgent action to stabilise the sector.
Hundreds of Engineers Leaving Amid Infrastructure Delays
Dr. Richard Templer, Chief Executive of Engineering New Zealand Te Ao Rangahau, has raised alarms over the growing number of engineers leaving the country due to a lack of work. He described the situation as “devastating,” pointing to government project delays as the main cause.
“The shutdown of education rebuilds, the shutdown of hospital builds and upgrades the slow down on roading, the changes in the Three Waters space has meant that New Zealand engineers and New Zealand constructors, the people who build the roads, waters network and buildings, have all had to look for work elsewhere,” Templer told RNZ.
While exact figures are difficult to obtain, Templer estimated that “well into the hundreds” of engineers have already lost their jobs, with many either contracting overseas or permanently relocating. Australian infrastructure firms, in particular, are actively recruiting New Zealand engineers, while others are being drawn to major rebuild projects in California following last month’s wildfires.
Government Delays and Policy Changes Worsening the Problem
The crisis has been exacerbated by government decisions to halt or postpone critical infrastructure projects. The suspension of major developments, including hospitals, schools, and roading projects, has left engineering firms struggling to retain staff.
“The problem is that there’s been a 17-month hiatus in which large contracts have been stopped and not re-let,” Templer said in an interview with The Mike Hosking Breakfast. “That’s what’s caused engineering firms to make the tough decision to shed their staff. And when there’s no work, people will head overseas.”
Industry leaders argue that the issue is not just about current job losses but also about the country’s long-term ability to complete essential infrastructure projects. Engineering New Zealand has warned that New Zealand already faces an annual shortfall of 2,300 engineers, and continued job losses will only deepen the skills gap.
Calls for Immediate Government Action
In response to the worsening situation, Engineering New Zealand is urging the government to release infrastructure funds and establish a long-term, stable pipeline of projects. The organisation is calling for infrastructure delivery targets to be included in government quarterly action plans to provide greater certainty for the industry.
“We need to get major project design and procurement underway as soon as possible. The funds for infrastructure projects need to be prioritised and released,” Templer said.
Infrastructure New Zealand Chief Executive Nick Leggett echoed these concerns, warning that the industry cannot afford the uncertainty that comes with shifting political priorities.
“What we want to do is keep pushing because every time the government changes, it seems in current political times we see this windscreen wiper that just wipes everything off the windscreen,” Leggett said. “What we’ve got to have is greater certainty.”
Long-Term Risks to New Zealand’s Infrastructure
The loss of engineering talent is expected to have long-term consequences for New Zealand’s infrastructure development. Without enough engineers, projects such as new roads, hospitals, schools, and water facilities will face delays, potentially leading to economic and social setbacks.
Templer warned that the current crisis could result in a repeat of the early 2000s brain drain, when a lack of investment in the sector forced many skilled workers to leave, setting the industry back years.
“we can’t afford to lose more engineers,” he said. “By the time infrastructure work once again ramps up, our country may well find itself without the engineers it needs.”