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IPWEA NZ CONFERENCE 2019 WELLINGTON
DELIVERING ON REFORM
FutureInfrastructurePerspectives
June 2019
Ross Waugh
Waugh Infra...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
• The NZ Engineering Skills shor...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
NZ Inc Outlook
 Tourism growth ...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Advance Australia Fair
• 53.7% L...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Engineering Facts and Projection...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Research Insights and Observatio...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Procurement and Supply Chains
So...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Skills Shortage: Engineering & A...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Skills Shortage: Operators Machi...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Skills Shortage: Operators - Tre...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Skills Shortage: Construction Te...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Industry initiatives in place
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Emerging Technologies
 AI
 Int...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Responses
 Engineering Pipeline...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
Looking Forward - Actions
 Beco...
DELIVERING ON REFORM
FutureInfrastructurePerspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON
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The Criticality of People in the Sustainability of Infrastructure Management Service Delivery in New Zealand

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

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The Criticality of People in the Sustainability of Infrastructure Management Service Delivery in New Zealand

  1. 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. 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
  3. 3. DELIVERING ON REFORM 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
  4. 4. DELIVERING ON REFORM FutureInfrastructurePerspectives IPWEA NZ CONFERENCE 2019 WELLINGTON 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
  5. 5. DELIVERING ON REFORM FutureInfrastructurePerspectives IPWEA NZ CONFERENCE 2019 WELLINGTON 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
  6. 6. DELIVERING ON REFORM FutureInfrastructurePerspectives IPWEA NZ CONFERENCE 2019 WELLINGTON 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
  7. 7. DELIVERING ON REFORM FutureInfrastructurePerspectives 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
  8. 8. DELIVERING ON REFORM 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
  9. 9. DELIVERING ON REFORM FutureInfrastructurePerspectives IPWEA NZ CONFERENCE 2019 WELLINGTON Skills Shortage: Operators Machinery
  10. 10. DELIVERING ON REFORM FutureInfrastructurePerspectives 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
  11. 11. DELIVERING ON REFORM FutureInfrastructurePerspectives 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)
  12. 12. DELIVERING ON REFORM FutureInfrastructurePerspectives IPWEA NZ CONFERENCE 2019 WELLINGTON Industry initiatives in place
  13. 13. DELIVERING ON REFORM FutureInfrastructurePerspectives IPWEA NZ CONFERENCE 2019 WELLINGTON Emerging Technologies  AI  Internet of Things  Drones  Expert Systems  Knowledge Bases  Some efficiencies expected, different skills required
  14. 14. DELIVERING ON REFORM FutureInfrastructurePerspectives 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
  15. 15. DELIVERING ON REFORM FutureInfrastructurePerspectives 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
  16. 16. DELIVERING ON REFORM FutureInfrastructurePerspectives IPWEA NZ CONFERENCE 2019 WELLINGTON

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