Ross Waugh, Director of Waugh Infrastructure Management (waughinfrastructure.com), presented this paper during the June 2019 IPWEA New Zealand conference in Wellington.

1. IPWEA NZ CONFERENCE 2019 WELLINGTON
DELIVERING ON REFORM
FutureInfrastructurePerspectives
June 2019
Ross Waugh
Waugh Infrastructure Management Ltd
The criticality of people in the sustainability of
infrastructure management service delivery
in New Zealand.

2. DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
• The NZ Engineering Skills shortage is well acknowledged and discussed
• The skills shortage is across the stack of engineering and construction services
• This keynote looks at the size of the issue, and some responses
• There is an accompanying paper which contains additional information
• The development of this keynote was supported by a wide range of people
Introduction

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FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
NZ Inc Outlook
 Tourism growth projected
 13 bn per year capital projects for next 10 years
(4.4% GDP per annum)
 Constraint is the ability to build/construct - not
finance or identified projects i.e. people with
the right skills and experience
• Plenty of growth projected with supporting
infrastructure needed
• Population 5M currently projected to grow to 6M by
about 2045, 300B GDP
• 300,000 net immigration in last 6 years = 2X Hamilton
CC in 6 years
Source: Engineering and economic growth: a global view – Royal Academy of Engineering September 2016

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Advance Australia Fair
• 53.7% Local Government employees older than 45 yrs
• Decline of under 30’s
• Significant decline in apprentices of 63.2%
• 69% of 215 Councils were struggling to fill roles
• 60% LGs have unmet training needs due to high cost, or
lack of training
• 70% haven’t done any analysis or forecasting of role
changes from digital disruption and technology
• Major infrastructure programmes underway
• Likely Australia will look to recruit in New Zealand – Trans-
Tasman market for Engineers and skills

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Engineering Facts and Projections
• NZ needs major investment in
Engineering
• Well behind peer countries
Source: Engineering and economic growth: a global view – Royal Academy of Engineering September 2016

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Research Insights and Observations
TRAINING
IN COUNTRY CAPACITY
Asset
Management
Consultants
Contractors
External
TA
Advice
Training
Regional
Support /
Networks
Engineering
Leadership
Board
Construction
 On going training required through whole stack of
infrastructure, engineering, construction
 Northern SI Branch Meeting Feedback (Nov 18)
◦ Attracting and retaining staff important
◦ Strong role models, leadership are needed
◦ Wider skill sets, different career starting points

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IPWEA NZ CONFERENCE 2019 WELLINGTON
Procurement and Supply Chains
Source: Engineering and economic growth: a global view – Royal Academy of Engineering September 2016
 Structural changes locked into NZ economy
during 1987-1993 Recession
 Training responsibility changed to individuals
 Current Supply Chain and Procurement
assumptions are not valid or ‘fit for purpose’
 Re-engineer Supply Chains for the next 20
years

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FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Skills Shortage: Engineering & AM
 14,000 Engineers short by 2025
 Graduating 600 Engineers a year (200 Civil)
 1 in 3 Engineers retire in the next 15 years
 1 in 2 Engineers retire in provincial areas in next 15
years
 1 in 6 public works professionals are women

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Skills Shortage: Operators Machinery

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IPWEA NZ CONFERENCE 2019 WELLINGTON
Skills Shortage: Operators - Treatment
 50% over 50 years of age
 In 15 years half operators will be retired
 Typical age of operators in training – early to mid
40’s
 Operator industry training needs a lot of work
 Lifting professional standards needed

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IPWEA NZ CONFERENCE 2019 WELLINGTON
Skills Shortage: Construction Teams
 10,000 staff short, January 2019
 Major industry viability issues apparent
 Shortage is impacting on major government
programmes (KiwiBuild)
 Construction industry highly stressed, showing up in
recently published suicide rates (1 every week and a
half)

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IPWEA NZ CONFERENCE 2019 WELLINGTON
Industry initiatives in place

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IPWEA NZ CONFERENCE 2019 WELLINGTON
Emerging Technologies
 AI
 Internet of Things
 Drones
 Expert Systems
 Knowledge Bases
 Some efficiencies expected, different skills required

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IPWEA NZ CONFERENCE 2019 WELLINGTON
Responses
 Engineering Pipeline Strategy – Secondary Education
 Expand training programmes
 Strengthen Engineering Base – Research links
 Delayed Retirement
 Immigration – Import Engineers
 Supply Chain and Procurement Adaptation

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IPWEA NZ CONFERENCE 2019 WELLINGTON
Looking Forward - Actions
 Become Informed
 Become involved
 Start the hard conversations
 Commit resources and funds
 Re-examine your Supply Chain and Procurement
 Plan how to manage your skills shortage

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IPWEA NZ CONFERENCE 2019 WELLINGTON