Engineering Firms Lose 1,200 People In 12 Months Amid Major Slowdown In Infrastructure

More than 760 people have been made redundant at New Zealand engineering consultancy firms in the past year and a further 270 have left for jobs overseas as businesses continue to feel the impact of a major slowdown in infrastructure work – and the figures are expected to be much worse.

The latest ACE New Zealand survey reveals a further 126 people have moved to other roles within New Zealand and 50 to unknown locations, meaning firms have lost more than 1,200 people in the past 12 months.

ACE Chief Executive Helen Davidson says the latest figures are just a snapshot of what’s happening in the sector, and the number of jobs lost is probably much higher.

“ACE represents more than 270 engineering and consulting firms around the country and this report includes data from 71 of those businesses – so things are probably much worse than we know.”

Davidson says the past year has been really tough for the consulting sector and some firms have found it increasingly difficult to operate while the Government has been reviewing and changing how to plan, fund and deliver infrastructure in Aotearoa.

“We now have new frameworks and structures in place for better infrastructure planning and delivery, and there have been some significant funding announcements. It's clear the Government is committed to infrastructure investment and our latest report shows that most firms (86%) are confident business will pick up over the next 12 months.

“But many businesses are still struggling because of the lag between investment announcements and work coming to market. Business leaders have told us they’ve had to restructure, make redundancies, reduce staff hours or cut other operating costs. Some are exploring business opportunities overseas.

“To lose this many skilled professionals in such a short time is scary. These are experienced engineers and technical specialists that we’ll need to rely on when the infrastructure work ramps up again.

“Not only is this issue challenging for our sector – it will have a significant impact on our economy long-term, as well as the communities we serve.”

ACE New Zealand, along with Engineering New Zealand and Civil Contractors New Zealand, met with Infrastructure Minister Chris Bishop last month to discuss the lack of work for engineers and contractors in the construction and infrastructure sectors.

Davidson says the organisations asked the Government to take urgent action to get infrastructure works started and funding flowing. They raised the importance of encouraging government agencies to prioritise and bring forward renewal and maintenance work, particularly in roading and water infrastructure. They also suggested government agencies could break out early sections of work, like investigations and utility relocations, from major projects to get them to market quickly.

“We welcome the Government’s commitment to infrastructure investment and a reform programme that aims to reduce barriers to getting work started. However, we know that systemic change takes time, and we are advocating for action now.

“The meeting with the minister was constructive and we’re pleased to see his positive response to our suggestions. He's taking this seriously and is looking at ways to speed up investment into the sector, which is a positive step.

“It’s vital that we retain the skilled workers we need to deliver infrastructure priorities and then aim to get a more visible, well signalled and consistent flow of funding in the future.”

Key findings from the report

• 83% of businesses continue to experience a slowdown of work
• 71% reported slowdowns in residential development; 49% in vertical construction, 23% in transport and 17% in water
• 46% reported no change in the amount of work coming to market in the last three months, 27% said things are getting worse and 27% said things are getting better
• 49% of business owners are not feeling any more confident now than they did three months ago, 20% are less confident and 10% are feeling anxious about the future of their business
• 59% are moderately prepared and 25% are very prepared for an increase in workflow over the next 6-12 months; 11% felt unprepared and 4% were unsure
• 34% said they are recruiting about the same number of graduates in 2025 compared to 2024, 30% are recruiting fewer, 27% are not recruiting any graduates but did in 2024, 9% are recruiting more graduates 
   

Read the full report

ACE New Zealand How's Business? Report March 2025

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