The Australian National Engineering TaskforceChris Walton, CEO, APESMA

• Engineers Australia has estimated that 70,000 engineers will have retired between 2006 and 2011

• Government investment in infrastructure - $277 billion by 2012

• Around 40% of engineering graduates from Australian universities were overseas students in 2006.

• In 2007-8 around 80% as many engineers immigrated to Australia as graduated from Australian Universities.

• How many domestic graduates leave to work overseas ? How many return ?

• Despite some recent improvement, about 40% of commencing engineering students do not complete their engineering degree.

• It is estimated that some 75% of graduates will leave the profession within 10 years.

• Only 17% of engineering graduates are women, unacceptably low.

• The impact is not just in numbers - those retiring have decades of experience. ANET survey indicates real concern about inter-generational transition among engineers.

Engineering Capacity Crisis

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.

• 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 Cross-Sectoral Problem

• 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 mid-level and senior engineers.

A Significant Cost to Industry

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

• 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

Capacity for Innovation ?

Falling rates of secondary students with prerequisite mathematics and science for engineering courses…

Higher Education

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.

• 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

Addressing Market Failure

Australian NationalEngineering Taskforce

• APESMA• Consult Australia• Engineers Australia• The Australian Council of Engineering Deans• The Australian Academy of Technological

Sciences and Engineering

Industry support for ANET

• 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.

• 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