Transcript The Australian National Engineering Taskforce Chris Walton, CEO, APESMA Engineering Capacity Crisis • Engineers Australia has estimated that 70,000 engineers will have retired between 2006

The Australian National Engineering
Taskforce
Chris Walton, CEO, APESMA
Engineering Capacity Crisis
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Engineers Australia has estimated that 70,000 engineers will have retired
between 2006 and 2011
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Government investment in infrastructure - $277 billion by 2012
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Around 40% of engineering graduates from Australian universities were
overseas students in 2006.
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In 2007-8 around 80% as many engineers immigrated to Australia as
graduated from Australian Universities.
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How many domestic graduates leave to work overseas ? How many return ?
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Despite some recent improvement, about 40% of commencing engineering
students do not complete their engineering degree.
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It is estimated that some 75% of graduates will leave the profession within
10 years.
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Only 17% of engineering graduates are women, unacceptably low.
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The impact is not just in numbers - those retiring have decades of
experience. ANET survey indicates real concern about inter-generational
transition among engineers.
Local Government
• The IPWEA estimated that in the next 10-15 years, over
50% of engineers currently employed in local
government will retire.
• The structure of the industry – outsourcing of traditional
public works functions, de-professionalisation of
engineering functions, reduced education and cadetship
opportunities, lower salaries – leads to high turnover.
• Attracting engineering graduates to public works careers
is hampered by a lack of community profile.
A Cross-Sectoral Problem
• POWER: The Australian Power Institute has stated that
in the next 5 years an additional 700-1000 graduate
engineers will be required in power due to retirements
and growth in the industry.
• WATER: The Water Services Association of Australia
has predicted that 25-27% of the workforce will have
retired by 2017.
• RESOURCES: It has been estimated that at its peak the
Gorgon LNG Project in WA will require 6,000 workers.
How will this affect other industries in the state?
A Significant Cost to Industry
• Blake Dawson’s ‘Scope for Improvement’
report discovered cost overruns of some
$200 million for every $1 billion spent on
major infrastructure projects in 2008, due
mainly to engineering skills shortages.
• According to Consult Australia’s Skills
Survey, two thirds of consulting firms delayed
projects last year because of staff shortages.
Employers had most difficulty attracting midlevel and senior engineers.
Engineer Survey: December 2009
Engineer Survey: December 2009
Engineer Survey: Engineers’ Comments
Most professional engineers in local government tend to
move away from nuts and bolts engineering, and pursue
better paying and more powerful people management
roles. Technical hand-on engineers don’t seem to be
adequately recognised or appropriately rewarded for the
important work they do.
– Engineer, aged 40, Local Government
We have a high turnover of younger engineers. In most
cases as we are a local government water utility, we are
the stepping stone to consultancy.
– Engineer, aged 35, Local Government
Engineer Survey: Engineers’ Comments
There is a gap with the retiring engineers that have held
roles for up to 20-30 years and we are now trying to
replace these staff. It is hard to get engineers that are
willing to relocate from the cities and the ones that apply
are only coming to get experience to then move on to a
city council.
– Engineer, aged 34, Local Government
Local government is being de-engineered and there is a
definite lack of understanding about what engineers can
offer.
– Engineer, aged 54, Local Government
Capacity for Innovation ?
• A basic shortfall in supply
• Plus poor understanding of specific industry
needs and relevant cycles
• Leads to poor responsiveness in education and
industry
• Undermining the contribution of engineers to
innovation and productivity
Higher Education
Falling rates of secondary students with
prerequisite mathematics and science for
engineering courses…
Shift to a student demand driven system for
Higher Education, means…
A leap in the dark for industry.
National Priority Occupation
• Skills Australia have nominated
Engineering as an occupation requiring
workforce development interventions to
address market failure.
Addressing Market Failure
• Requires ongoing institutional commitment to
planning, innovation, best practice.
• Engineering skills shortages are complex and
characterised differently across industries; Local
Government engineering supply issues are different
to issues affecting Roads or Mining
Australian National
Engineering Taskforce
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APESMA
Consult Australia
Engineers Australia
The Australian Council of Engineering Deans
The Australian Academy of Technological Sciences
and Engineering
Industry support for ANET
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The Warren Centre for Engineering Excellence;
Australasian Railways Association;
Australian Railway Industry Corporation (ARIC);
Australian Rail Track Corporation;
Queensland Rail;
Railcorp;
Roads Australia;
Transport and Logistics Centre (TALC);
Infrastructure Partnerships Australia;
Austroads;
The National Transport Commission (NTC);
The Australian Construction Industry Forum (ACIF);
The Australian Constructors Association (ACA);
Master Builders Association;
The Australian Council of Built Environment Design Professionals (BEDP);
The Australian Procurement and Construction Council (ACPP);
The Chartered Institute of Purchasing and Supply Australia (CIPSA)
Australasian Institute of Mining and Metallurgy (AusIMM)
ANET: Funded Projects, 2010
1. Demand and workforce development analysis
by industry/sector: priority, road and rail.
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Draft report by August, final November 2010
Developing a model for industry analysis
Creating consensus and engagement with key stakeholder concerns
2. Education pathways, specifically VET/HE
articulation, best practice, blockages etc.
Report to Government by the end of 2010
Moving Forward In 2010-11
• Work with National Resource Sector Employment
Taskforce to assess impacts, responses etc
• Incorporate work/findings of Water sector employment
taskforce
• Apply ANET research model to other sectors: Power,
Local Government etc.
• Inform Government on migration issues
• Develop education policy proposals, including
mechanisms for improved on the job development and
intergenerational transfers.
More Information
www.anet.org.au